In the context of green and sustainable development, the rise of electric vehicles (EVs) has transformed traditional automotive sales methods, leading to the emergence of a “direct sales + distribution” dual-channel model. Studying dual-channel supply chains for EV cars is crucial for advancing the entire industry. Faced with competition from traditional fuel-powered vehicles, EV manufacturers must enhance their efforts in areas such as after-sales services and technological innovation to capture a larger market share. Some EV car producers are leveraging extended warranty services to stimulate sales and seek profit growth points. This article summarizes and analyzes research findings on extended warranty service models within dual-channel supply chains for EV cars globally, offering theoretical insights.
The adoption of EV cars has gained significant attention from governments worldwide as a key method for energy conservation and emission reduction. According to industry statistics, global sales of EV cars reached millions of units in recent years, highlighting their growing market penetration. As economies develop, consumer attitudes toward vehicle maintenance are shifting from a “repair-focused” approach to a “maintenance-focused” one. Consequently, EV car manufacturers must strategically position themselves in the after-sales service sector to better stimulate consumer demand. Many EV car companies are using extended warranty services as a tool to boost sales and identify new revenue streams. Furthermore, with the introduction of direct sales by companies like Tesla, the dual-channel marketing model of “direct sales + distribution” has become prevalent. Under this model, extended warranties for EV cars can be offered either by the manufacturers themselves or by distributors. Additionally, some EV car firms are deploying battery swap station networks to alleviate user concerns about battery range, making swap service levels a critical competitive metric. This article will归纳 and summarize research by domestic and international scholars on extended warranty models in dual-channel supply chains for EV cars.
Current Research Status
This section reviews and critiques domestic and international research on extended warranty models in dual-channel supply chains for EV cars, focusing on two main areas: EV car supply chains and extended warranty services.
Research on EV Car Supply Chains
Studies on EV car supply chains primarily address operational management, power battery recycling, and charging/swap modes. These aspects are essential for understanding the dynamics of EV car markets and their sustainability.
In terms of operational management, Lim et al. explored how consumer anxieties regarding range and resale value impact the adoption rates of EV cars. They developed models that consider psychological factors, showing that higher range anxiety reduces demand for EV cars. For instance, the demand function can be represented as:
$$ D = a – b \cdot P + c \cdot S – d \cdot A $$
where \( D \) is demand, \( P \) is price, \( S \) is service level, \( A \) is anxiety factor, and \( a, b, c, d \) are constants. Lu Chao et al. investigated pricing strategies for EV car manufacturers under “dual-credit” policies, revealing that such policies can enhance manufacturer profits by incentivizing the production of EV cars. Their model demonstrates that profits increase when credits are allocated efficiently. Ma Liang et al. studied demand and pricing issues in different supply chain modes for EV cars, highlighting how dual-channel structures affect market outcomes. Yoo et al. constructed a tripartite game model involving EV car manufacturers, service providers, and governments, comparing the characteristics and benefits of three EV car service platforms under current and future scenarios. Their findings suggest that platform integration can improve service efficiency for EV cars.
Regarding the recycling and reuse of used power batteries, Gu X. et al. conducted research on the cascaded utilization of retired EV car batteries. They emphasized the environmental benefits and economic viability of recycling processes. Lou Gaoxiang et al. compared the effects of subsidies based on battery recycling volume versus battery capacity on closed-loop supply chain efficiency. They found that subsidies based on capacity may lead to a decrease in recycling rates as the subsidy factor increases, due to potential inefficiencies. This can be modeled with a recycling rate function:
$$ R = \alpha \cdot Q + \beta \cdot C $$
where \( R \) is the recycling rate, \( Q \) is the quantity recycled, \( C \) is the capacity, and \( \alpha, \beta \) are parameters influenced by subsidies.
For charging and swap modes, Jiang Zhongzhong et al. established decision-making optimization models for EV car manufacturers based on process innovation and business model innovation strategies. Their work shows that innovation can reduce costs and improve service levels for EV cars. Du Jianguo et al. studied pricing decisions in EV car swap supply chains under different power structures, indicating that longer charging times for EV cars can lower costs and enhance charging technology R&D capabilities. This relationship can be expressed as:
$$ C_{charge} = k \cdot t^{-1} + F $$
where \( C_{charge} \) is charging cost, \( t \) is charging time, \( k \) is a constant, and \( F \) represents fixed costs.
Table 1 summarizes key aspects of EV car supply chain research, highlighting the focus areas and limitations.
| Research Area | Key Findings | Limitations |
|---|---|---|
| Operational Management | Anxieties affect EV car adoption; dual-credit policies boost profits. | Ignores extended warranty services and swap service levels. |
| Battery Recycling | Cascaded use is viable; subsidies impact recycling rates. | Does not integrate with dual-channel models for EV cars. |
| Charging/Swap Modes | Innovation reduces costs; power structures influence pricing. | Overlooks the role of extended warranties in EV car services. |
In summary, while these studies provide valuable insights into EV car supply chains, they often neglect the integration of extended warranty services and the impact of dual-channel models on pricing and service decisions for EV cars.
Research on Extended Warranty Services
Extended warranty services refer to additional coverage beyond the basic warranty, which typically offers free repairs and replacements for durable goods. Academic interest in extended warranties has grown, with research focusing on service models and supply chain coordination.
In terms of extended warranty service models, Bian et al. studied the decision-making and optimal sales strategies for suppliers offering traditional extended warranties versus trade-in extended warranties. They developed a model where the supplier chooses between these options based on profit maximization. For example, the profit function for a traditional extended warranty can be written as:
$$ \Pi_{traditional} = (P_{ew} – C_{ew}) \cdot D_{ew} $$
where \( P_{ew} \) is the price of the extended warranty, \( C_{ew} \) is the cost, and \( D_{ew} \) is the demand for extended warranties. Zheng Bin et al. examined scenarios where manufacturers or retailers provide extended warranties, or both do so simultaneously, analyzing the interplay between product pricing, extended warranties, and basic warranties. Their findings indicate that coordination between parties can enhance overall supply chain performance for EV cars. Liu Zhen et al. investigated how product innovation investments influence the choice of extended warranty service models by dominant retailers. They found that manufacturers’ willingness to cooperate varies with customer sensitivity to extended warranty prices and cost differences, but joint efforts often outperform retailer-led initiatives.
Regarding supply chain coordination for extended warranty services, Tang Hua et al. established a game theory model involving a single manufacturer and two competing retailers, revealing how competition in products and extended warranties affects supply chain synergy. Ma et al. considered supply chain competition and retailer-provided extended warranties, studying coordination contracts in competitive environments. Ai Xingzheng et al. explored the role of different extended warranty providers in supply chain systems and used revenue-sharing contracts to coordinate these chains. Zheng Chen et al. addressed Pareto improvement in supply chains where manufacturers are the extended warranty providers, with dual retailers involved. Liu Zhen et al. analyzed manufacturer channel intrusion under retailer transfer of extended warranty sales rights, establishing optimal invasion, pricing, and sales decisions under different authorization contracts.
Table 2 provides an overview of extended warranty service research, emphasizing models and coordination mechanisms.
| Aspect | Research Focus | Key Insights |
|---|---|---|
| Service Models | Traditional vs. trade-in warranties; manufacturer/retailer roles. | Coordination improves performance; innovation affects choices. |
| Supply Chain Coordination | Game theory models; revenue-sharing contracts. | Competition requires tailored contracts for EV cars. |
From this, it is evident that existing literature primarily concentrates on extended warranty policies, mode selection, and supply chain coordination, often overlooking the impact of dual-channel sales models on extended warranty services for EV cars.
Research Critique and Future Directions
In summary, current research on EV car supply chains mainly addresses operational management, power battery recycling, and charging/swap modes, with limited attention to extended warranty service models and their integration with dual-channel structures. Studies on extended warranties focus on mode selection and supply chain coordination, typically assuming single-channel product distribution, thus neglecting the influence of dual-channel supply chains on extended warranty service choices. On one hand, the EV car industry has revolutionized sales channels by incorporating direct sales, making it essential to consider dual-channel models when studying extended warranties for EV cars. On the other hand, manufacturers gain pricing power through direct channels, which affects the pricing and distribution of extended warranties and subsequently impacts the profits of supply chain members. Therefore, future research should integrate extended warranty service models into the EV car domain, constructing dual-channel supply chain models that account for extended warranties.
Moreover, given consumer preferences for battery swap services, future studies could focus on how changes in swap service levels under different extended warranty models influence decision-making. For instance, a proposed model might include a profit function for a manufacturer offering extended warranties in a dual-channel setup:
$$ \Pi_{manufacturer} = P_d \cdot D_d + P_r \cdot D_r + P_{ew} \cdot D_{ew} – C_s \cdot S – C_{production} $$
where \( P_d \) and \( P_r \) are prices in direct and retail channels, \( D_d \) and \( D_r \) are demands, \( P_{ew} \) is extended warranty price, \( D_{ew} \) is demand for warranties, \( C_s \) is swap service cost, and \( S \) is service level. This could be extended to analyze how dual-channel dynamics affect optimal strategies for EV cars.
In conclusion, the fusion of extended warranty services with dual-channel supply chains for EV cars presents a promising avenue for research. By developing models that incorporate pricing, service levels, and consumer behavior, scholars can provide practical insights for manufacturers and distributors of EV cars, ultimately fostering industry growth and sustainability. Future work should also empirical validate these models using real-world data from EV car markets to ensure relevance and applicability.