Analysis of the Business Model for New Energy Vehicles Surpassing Traditional Fuel Vehicles in Chinese Market

Abstract

Under the backdrop of low-carbon transformation in the global automotive industry, New Energy Vehicles (NEVs) in Chinese market have achieved market dominance over traditional Internal Combustion Engine (ICE) vehicles through business model innovation. This study employs case analysis and SWOT methodology, focusing on leading NEV manufacturers in China (Tesla, BYD, NIO, Huawei, etc.), to systematically examine successful innovations in three key areas: sales strategies, product definition, and ecosystem development. Key findings include: 1. Motor technology has disrupted the engine performance-based premium pricing system; 2. Integrated hardware-software-aftermarket ecosystems have established new competitive barriers; 3. Significantly shortened R&D and manufacturing cycles have transformed traditional automotive development systems; 4. Direct/hybrid sales models have markedly improved channel efficiency and quality (35% increase in customer satisfaction). The research confirms that NEVs' competitive advantage stems from "technology + model" dual drivers, while also highlighting challenges including inadequate charging infrastructure (rural coverage <12%) and consumer concerns regarding safety and range. The core contribution of this study lies in demonstrating that Chinese NEV leadership stems not merely from technological breakthroughs, but more fundamentally from systematic business model innovation. These findings provide both a replicable framework for traditional automakers transitioning to electrification and new market entrants, as well as theoretical foundations for policymakers to optimize industry support measures. NEV business practices are actively redefining the competitive rules and development trajectory of the global automotive industry.