Abstract
New energy vehicles have a significant advantage in energy saving and environmental pollution reduction in the transportation industry; however, they are still at a disadvantage in the market competition. The Chinese government has introduced lots of policy measures to promote the mass adoption of new energy vehicles (NEVs), specifically the dual credit policy. Moreover, consumer’s preferences are vital factors in their purchase decision making. This study focuses on the production decisions of automobile manufacturers under the decentralized and centralized supply chain, considering the factors of both consumer preferences and dual credit policy. First, under the centralized decision mode, higher demand drives the manufacturer to expand production; however, retailers’ profits are harmed. With the increase in consumers’ environmental preference and cognition of endurance ability, market pricing and demand increase under the decentralized decision mode. The cross effects of preferences bring more profits for manufacturers and retailers. Second, the difference in prices and profits widens, under the two decision modes, as increases in consumer preferences’ value. When consumers have higher environmental preferences, manufacturers and retailers should increase the new energy vehicle pricing. Otherwise, they should decrease pricing to increase the market penetration ratio. In addition, the impacts of one preference on the profit difference are related to the other preference.
Highlights
This paper studies the effects of consumer preferences in the supply chain, which consists of one manufacture and two retailers, under the dual credit policy
NEVs and conventional vehicles production decisions from an across-chain perspective, and the results suggest that the increase in profits of new energy vehicles supply chain under the dual credit policy but the decrease in profits of fuel vehicles supply chain [3]
> 0, According to proposition 1, the recognition for cruise capability has a positive effect on the growth of market demand and sales price under the decentralized decision model, i.e., the increase in market demand of the new energy vehicles is following the increase in the recognition for cruise capability, and its trend is faster than the increase in demand of fuel vehicles
Summary
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. The transportation industry is the major contributor to greenhouse gas emissions and the resulting global climate crisis [1], owing to new energy vehicles’ potential of ensuring travel, reducing harmful gas emissions, and significant advantages of health and environment. It has become an important direction of the transformation of the global automotive industry [2,3]. If the price is second, consumers mind other attributes of electric vehicles [12], such as cruising capability, colors, and environmental friendliness, etc These internal and external factors have greatly affected new energy vehicles’.
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