VEHICLE PRICINGIN THE NEWAUTOMOTIVEREALITYHow e-commerce, direct sales, andelectric cars are radically transformingpricing for new vehicles

SummaryFor automakers, the COVID-19 episode will be followed by an ever-acceleratedtransformation towards e-commerce, direct sales, and electrification. This shiftwill bring massive changes to both price models and price setting for cars.In this study, we investigate this transformation, surveying more than 1,100potential electric vehicle buyers in Europe and talking to leading industry expertswho have already begun applying new pricing logics. Based on six fundamentalpremises about pricing in the future, we have developed a transformationroadmap for pricing in markets that are increasingly omni-channel, direct tocustomer, and electric.PrefaceWith advancements in e-commerce, direct sales,and electric vehicles, the automotive industry isradically changing. New players like Byton areleading this change into an omni-channel anddirect sales model with electric vehicles. AccentureStrategy and Byton joined forces to rethink vehiclepricing in this new automotive reality. Based onour global network of leading industry expertsand innovative start-ups as well as best practiceand conceptual elaborations, we developed sixfundamental premises of future pricing. Jointly,we bolstered these premises with a quantitativestudy surveying more than 1,100 actual Bytonprospects using Byton’s European sample ofpotential electric vehicle customers.In this point of view, we focus on the role ofpricing in the new automotive reality. Of course,the impact of e-commerce, direct sales, andelectric mobility is much wider, disrupting thebusiness models of many established playersin the automotive ecosystem. We will cover thisin an upcoming publication.Since the transformation in sales and pricinghas already started, we believe that this point ofview will help our partners and clients to lay thefoundation for future success.Munich & Kronberg, August 2020Johannes Trenka,Accenture Strategy Managing DirectorGerald Krainer,Byton Director Go-to-Market Europe

1. The changing automotive saleslandscape: Three megatrends aredisrupting conventional pricingOver decades, pricing in the automotive industryhas barely changed. Based on what the brandpositioning allows, OEMs set a sky-rocket list pricewhich is gradually discounted at the different saleslevels, until the customer haggles for the best deal ata retailer of choice. Since e-commerce and powerfulonline platforms increased price transparency inrecent years, transaction prices have experienceda race to the bottom. In addition, greenfield playerssuch as Tesla are pursuing “direct to customer”sales (D2C) and established OEMs like Daimler areincreasingly following in order to cut costs of retail.This has led to new price strategies such as a “fixedprice approach”. Lastly, with more electric vehicles(EVs) on the market, established vehicle segmentsand pricing mechanisms are changing.Figure 1: Three megatrends are disruptingconventional pricing1. E-CommerceWhile automotive sales already slowed down in2019 (-4% from 2018), a severe hit of at least 20%is expected in 2020 due to COVID-19. At the sametime, e-commerce, D2C, and EVs are kicking insimultaneously disrupting automotive pricing.PRICING2. Direct Sales(D2C)3. Electric Vehicles(EV)Figure 2: Three megatrends and their implications on vehicle pricingMEGATRENDSIMPLICATIONS ON PRICING1. E-Commerce Full price transparency due to increased comparability of different brandsand offers Increased price competition (incl. intra-brand) due to third-party platforms Fewer options for price negotiations due to full online journey2. Direct Sales (D2C) OEM transaction price responsibility since agents usually are not allowedto give discounts Price harmonization across channels due to central price control Advanced analytics-based pricing due to availability of data previously heldby the dealerCustomers want end-toend online experiencealong their journeyOEMs accelerate shift todirect sales due to strategicand financial considerations3. Electric Vehicles (EV)Increasing penetration ofEVs means new challengesand opportunities Limited flexibility in price setting due to higher base price and fewer upgradeoptions vs. internal combustion engines (ICEs) New vehicle economics due to differences in residual value and potentiallyslower depreciation vs. comparable ICEs New segment type as pure EVs define new categories and cannot be pricedagainst competition3

Study ApproachIn this study, we surveyed more than 1,100 potential buyers of EVs across Europe about theirvehicle usage, channel preferences, and expectations regarding different forms of vehicleownership or access.Figure 3: Sample of quantitative surveyAGE18-29 YearsCOUNTRY1Norway3430-39 Years506Germany163256Switzerland40-49 Years41260-69 Years70 Yearsand ance28Hyundai18166% have pre-ordered an EV1135AustriaOther36BMWVolkswagen9931450-59 YearsCURRENT BRAND1079078Other brand615171% use their vehicle dailyThe sample is biased towards Norway, a pioneer market for EVs in Europe.Expert InterviewsFurther, we interviewed the C-Suite from disruptive industry players and ecosystem partners.Figure 4: Interview partners4Georg BauerCo-Founder & PresidentIndustry Relations,FairAndrea CastronovoCEO, Alphabet ItaliaFleet Management SpAStefan ElingDirector Captive Mobility,Santander ConsumerBankNico PolletiCEO & Founder,ClunoPhilipp Sayler von AmendeCEO & Co-Founder,CarwowTien TzuoCEO & Founder,Zuora

1.1 Customers want an end-to-endonline experienceAccustomed to the customer-centric businessmodels of e-commerce firms such as Amazon orAirbnb, consumers are increasingly demandingconvenient end-to-end online journeys in theautomotive industry as well.Established OEMs and dealers have been slow toreact and are having a hard time meeting changingcustomer demands. At the same time, greenfieldOEMs (e.g. Tesla, Byton NIO) and third parties likerental firms (e.g. SIXT), platforms (e.g. Carwow), andwhite label offerings (e.g. Rockar, Roadstar) addressconsumers’ expectations. They offer new, digitallyenabled sales approaches that promise hassle-free,enjoyable experiences for customers. Even thefinancial service provider Santander has announcedplans to launch its own online platform for usedcars in Germany. As companies shift towarddedicated e-commerce, there are significantimplications on pricing: Full price transparency: Through e-commerce,different brands and models become directlycomparable at a fingertip for customers. Fewer price negotiations: Since online journeysoffer fewer options to negotiate, OEMs anddealers need to focus even more on setting andcommunicating the “right” prices through theire-commerce channels.1.2 OEMs accelerate shift to D2CPlayers in other industries (e.g. Zara in fashion,Nespresso in FMCG) have demonstrated theimportance of control over sales channels as wellas transaction prices, and, as a result, they’ve setup omni-channel customer journeys years ago. Inautomotive, Tesla and other industry disruptorslaunched D2C models, and traditional OEMs havebegun to move from indirect to direct sales models(see Figure 5).Increasing pressure to lower costs, which isintensified by COVID-19, has led many OEMs torapidly accelerate their journey to D2C sales. Unlikegreenfield disruptors, established OEMs face hugeorganizational transformation challenges whenshifting to D2C because the change affects a widerange of business areas and functions (e.g. stockmanagement, logistics, invoicing). Increased price competition: Third-partyplatforms increase price competition (also amongdealers of the same brand, referred to as “intrabrand competition”), since not only list prices,but also the final transaction prices, includingdealer discounts, become directly comparablewith just a few clicks.Figure 5: D2C initiatives in the automotive industryESTABLISHED w Zealand South Africa New ZealandAustraliaSwedenAustriaRest of EuropeSPIN-OFFSDISRUPTORSBMWVW lobalChinaChina2000 /20212017 / 2019 /2021 / 2025 201820202020 2013 /2018201720172019 /2020201220182020 AllAllAllAllSelectedAllAllAllAllAllAllAll5

Obviously, D2C sales has important implicationson pricing: Control of transaction price by OEMs: OEMsget central price control, requiring a ramp up ofpricing capabilities for setting discounts andtacticals (in indirect sales, those are within therealm of the dealer). Price harmonization across channels: OEMsneed to steer and harmonize transaction pricesacross multiple sales channels (e.g. online carconfigurator, e-commerce store, retail). Possibility for analytics-based pricing: OEMsgain access to data (e.g. customer, transaction,and stock data) that was previously held bythe dealer, enabling data-driven pricing andend-to-end revenue management.1.3 Electric vehicles bring newchallenges and opportunitiesEV sales are rising globally with a compound annualgrowth rate of more than 40% between 2015-2019.While we see an increasing number of new players(e.g. Tesla, NIO, Xpeng, Faraday Future, Byton)focusing exclusively on EVs, almost all majortraditional OEMs have introduced pure batteryelectric vehicle models and are continuouslyexpanding their product ranges (more than 75models in Europe in 2020).6With improving battery range and charginginfrastructure, as well as new government subsidieswith the onset of the COVID-19 pandemic, thebreakthrough of electromobility has arrived.For vehicle pricing, this means: Limited flexibility in price setting: Base pricesof EVs are higher today than for comparablevehicles with internal combustion engines, giventhe still high cost of batteries (which over time willlikely decrease). In addition, engine componentscannot be differentiated by various optionalequipment and features, except for those relatedto “range”. New vehicle economics: Compared to ICEs, EVshave up to one third lower wear and tear, theycan reach higher lifetime mileage and, as a result,they tend to depreciate slower. Hence, EVs aremonetizable over a longer period, e.g. throughmultiple leasing cycles. While ICEs lose the biggestchunk of their value in the first year, the residualvalue of EVs is potentially higher, giving companiesmore opportunities to re-market them. New segment type: Pure EVs define new segmentsand cannot be priced against traditional internalcombustion engine (ICE) competition. For instance,Volkswagen’s ID3 comes with the exterior size ofa “Golf” but offers the interior space of the higherpositioned “Passat”.

The direct sales (D2C) modelIn a D2C model, OEMs own and orchestrate different distribution channels covering e-commerce andphysical retail. They transform formerly independent dealers into agents (agency model). The latter receivea commission per sale. Hence, vehicles are sold by the OEM directly to customers either via agents inphysical retail spaces, their own flagship stores, or e-commerce. Regardless of the channel, the transactionhappens between the customer and OEM.Figure 6: Differences between traditional indirect and D2C sales pSALESCHANNELSCUSTOMERCUSTOMERStrategic benefits of D2CFull control over sales channels and direct contact with end-customers (who increasinglywant to buy directly from OEMs due to their reputation for expertise and reliability).Consequently, full access to valuable data currently only available to dealers.Financial benefits of D2CUp to 4% reduction in cost of retail due to elimination of intra-brand competition, highere-commerce share, and centralization of back-office processes.Pricing benefits of D2CFull control of pricing from list to transaction price. This includes aligned discounts,stabilization of price levels, and end-to-end price governance.Source: Accenture Point of View: The Future of Automotive Retail, 20197

2. Pricing in the new world:Fundamental premises for futurecar pricingAgainst the background of the three megatrends e-commerce,D2C sales, and EVs, we developed six fundamental premisesfor future automotive pricing:Figure 7: Premises for future car pricingStrategyOmni-channel customerexperience will be criticalPricing will become channel agnosticPrice ModelLeasing and its derivateswill prevailLeasing will fully outpace car ownershipAdvanced AnalyticsBased PricingSmart pricing will be the normPrice negotiations will become a thing of the pastSubscription models will continue to grow but not attractthe mass marketE-commerce and direct sales will increase both dataavailability and qualityOEMs will establish end-to-end revenue managementbased on advanced analyticsPricing will become channel agnosticOEMs need to have strategies and capabilities in place to set,steer, and monitor prices across channels.OEMs need to ensure transparent prices that arethe same across all channels (e.g. online, agent).Our survey found that 69% of consumers expectonline and offline prices to be the same. Amongyoung consumers (18-39 years old), even 78%share this expectation.78%of young consumers (18-39 years old)expect prices to be the same onlineand offline.8This finding is particularly important in the light thatonline sales of vehicles are getting more popular,and OEMs should focus on this critical channel:More than a third of consumers (and close to half ofyoung consumers) would prefer to purchase theirnext vehicle online.To ensure a seamless customer journey across allchannels and customer touchpoints, online andoffline prices must be the same to avoidcannibalizations across channels.

Price negotiations will become a thing of the pastIt’s not the lowest price, but the most transparent and fair pricesthat will matter. OEMs should consider “fixed prices” that arestable over a specific time in a defined market.Customers don’t like to haggle over price, as ourquantitative survey confirms. 69% of consumerperceive price negotiations with dealers ascumbersome and prefer buying at a fixed price.Thus, consumer preferences have changed: Pricelevels or discounts may no longer be the mostimportant criteria for purchase (less than 10% ofrespondents mentioned it as most important).Similarly, according to the online platform Carwow,only 25% of their customers choose the cheapestoffer, while 59% go for their local dealer and 31%for the best rated.Philipp Sayler von Amende,CEO & Co-Founder, CarwowAs long as customers feel that they arenot overpaying due to informationasymmetry with the dealer, the price itselfserves only as a hygiene factor and entrypoint for subsequent detailed purchase“evaluation”.Only 8%of consumers enjoy price researchand bargaining.Instead of trying to get the best price after endlessnegotiations with multiple dealers, consumersincreasingly prefer “peace of mind” and wouldrather purchase at a fixed price, knowing that theydid not miss out on a better deal. OEMs are startingto realize this and are switching to fixed priceswithin a D2C model. Also, dealers have recognizedthe need for price transparency: Lexus dealers inthe US have developed the “Lexus Plus” concept,where participating dealers ensure their customersfair and transparent prices without the need fornegotiation.9

Leasing will fully outpace car ownershipOEMs need to provide attractive leasing offers across multipleleasing cycles throughout a vehicle’s lifetime.As EVs are increasingly embraced, more consumersare leaning towards leasing. Our study found that48% of consumers say leasing is their most orsecond most preferred option for acquiring anelectric car. Since it is still difficult to determinethe residual value of EVs across brands andmodels, consumers avoid re-selling risks with aleasing contract. In addition, especially due to theCOVID-19 crisis, consumers value the lower capitalcommitment of leasing (42% of respondents saidit is the main advantage of leasing). Furthermore,the technological characteristics of EVs favorleasing: EVs tend to depreciate slower than ICEs,mainly due to fewer parts and less wear and tear.Slower depreciation would allow OEMs to offerlower leasing rates and monetize EVs throughmultiple leasing cycles over their lifetime.Stefan Eling,Director Captive Mobility,Santander Consumer Bank AGHow to handle residual value risk is achallenging topic for OEMs and their financialservice partners. Compared to ICE and giventhe uncertainty of the future technologicalevolution, now EV residual values are muchmore difficult to determine. On top, in a directsales model OEMs can no longer pass thisrisk to their dealers. This might triggernew business and price models.EVs and residual valueMany studies predict higher residual values for EVs compared to ICEs, but substantial data setsare still scarce, and the effects might be segment and market specific. It is important to keep inmind that in a D2C sales model, OEMs are the ones who carry the risk related to residual values,not dealers. These two factors, plus the expected additional demand for leasing after theonset of COVID-19, could lead to higher risk for OEMs and their financial partners. However,easier digitally enabled re-marketing and multiple leasing cycles can mitigate that risk.10

Subscription models will continue to grow but not attractthe mass marketCar subscriptions will continue to grow, and OEMs should usesubscriptions to complement their offerings. The advantagethat start-ups and third parties tend to have over OEMs is theirbroader brand and model mix.With up to 16 million vehicles on the road viasubscription, this innovative price model is on itsway to becoming the “fourth pillar” for car ownership,and OEMs should start getting a foothold in thisarea. High interest by “Gen Y” drivers in this flexiblemodel, the desire to test an electric car for sometime without a longer commitment, and, last butnot least, the impact of COVID-19 on people’s desireto travel alone, suggest that subscription has thepotential to be a lucrative channel to reachyounger, more urban customers with a highwillingness to pay.Nico Polleti,Founder & CEO, ClunoCustomers today desire flexibility andpeace-of-mind from ‘all-in’ offers. Hence,from a pricing perspective, it is notabout being the cheapest but having atransparent and reliable offering.28%of consumers name subscription as one oftheir top two preferred forms of car access.The “all-inclusive paradigm” of subscription ispositioned as a transparent and reliable alternativeto riskier and negotiation-intensive cash buying orleasing. While it likely will not be popular in themass market or replace other forms of access tovehicles, it will become one cornerstone of thefuture sales model of OEMs.11

Subscription models in the automotive industryThe so-called “subscription economy”, pioneeredby technology firms such as Spotify, Netflix, orZuora, shifts the sales model from one-off productpurchases to continuous “recurring” services.Ultimately, the automotive industry has embracedthis model by offering car subscriptions that givecustomers access to one or even more vehiclesbased on a regular fee ranging from 500 to4,000 a month. While a subscription rate is higherthan a comparable leasing rate, the offering comeswith multiple advantages. First, down payments arenot required or are very little. Second, fixed costslike maintenance, repairs, tax, and insurance arealready included. Finally, subscriptions are easyto set up, have short contract durations, and theyoften come with a vehicle swap option.The first pilots on subscriptions were launched in2012 by first movers like “SIXT unlimited”. Besidessubscription pilots by major OEMs, recently dealers,car rental firms, and innovative start-ups such asCluno (for new cars) and Fair (for used cars) haveentered this market (see Figure 8). Now that morepeople are interested in individual and virus freemobility since the beginning of the COVID-19pandemic, we expect more OEMs to offer thisinnovative price model, which give consumerslower upfront financial commitments and moreflexibility.As our quantitative survey across Europe illustrates,consumers value subscriptions mainly for lowcapital commitment (rated as main advantagesby 27%), their flexibility (24%), and their costtransparency (21%).Tien Tzuo,CEO & Founder, ZuoraOEMs know that car ownership is dying.What consumers really want is access.Subscriptions make the hassles of owninga vehicle go away. To turn vehicles intonew revenue sources, OEMs have to movebeyond traditional CRM and ERP systemsand adopt flexible monetization solutions.The winners are the ones that can quicklylaunch new services, build great digitalexperiences, and turn their customers intosubscribers.Young consumers are more open to subscriptions,showing up to three times higher preference forthis model. For providers, the key benefits of carsubscriptions include new customer segmentswith often high willingness to pay, as well as highcustomer lifetime value due to recurring revenues.Many OEMs also use subscription services to createinterest in new EV models, offer the battery in asubscription model, or to pilot new sales modelslike mobile or direct sales. However, subscriptionsrequire OEMs to move beyond traditional CRMand ERP systems and adopt flexible, agilemonetization solutions.Figure 8: Subscription offerings in the automotive industryA regular fee gives the customer access to one or more vehiclesNo vehicleownership12Low minimumtermsVehicle swapoptionFull-timeprimary vehicleProvidersOEMDEALERSHIPCAR RENTAL FIRMTHIRD PARTYUSPs New models Brand allure Existing network Brand choice Existing network Service provider Low price Vehicle choiceMotives Winning new customersfor future sales Employing existinginventory to preventlot rot Diversification ofbusiness Disruption ofautomotive industrywith new business model

E-commerce and direct sales will increase both dataavailability and qualityOEMs must use the new possibilities of big data, especially forpricing and discounting.In the indirect sales models, dealers almostexclusively own customer access, transactions,and resulting data. In D2C, this fundamentallychanges because OEMs have full visibility andcontrol over sales for the first time. They havedata about pricing (average transaction prices),customers (orders, web traffic, loyalty), and vehicles(stock). Combining multiple data from differentinternal and external sources, such as online vehicleconfigurations, supply chain data, and competitiondata, gives pricing specialists the opportunity toleverage these insights with advanced analytics.Andrea Castronovo,CEO, Alphabet Italia FleetManagement SpAI believe in big data pricing:Leveraging data and analytics will bemuch more efficient and effective toderive optimal discounts and prices.10 milliondata points are processed byCarwow each day.Due to e-commerce, not only quantity but alsoquality of data will increase tremendously. Forinstance, with unique customer IDs, even iterativeand complex omni-channel customer journeyscan be tracked. Unlike before, OEMs can tracecustomers’ decision-making processes (e.g. priormodel configurations or trade-offs before theultimate purchase decision) and better understanddemand for certain models and configurations.13

OEMs will establish end-to-end revenue managementbased on predictive analyticsOEMs need revenue management systems to suggest optimalprices according to strategy and contextual variables.While transaction price setting today is almostexclusively in the hands of dealers, in D2C OEMsmust centrally and professionally steer pricing for allmodels across all channels. Using advanced analyticsembedded in a central revenue management system,OEMs will be able to optimize prices on an ongoingbasis, depending on brand, segment, or even model.Prices are adapted according to different genericstrategic goals such as (1) maximizing volume ormarket share, (2) revenue, or (3) profits (see Figure 9).Such data-driven systems, based on price elasticities,will ultimately support OEMs in managing the highlycomplex and quickly changing trade-off betweenrequired vehicle volume and margin goals. Thehigher the demand fluctuation and the smaller therespective market, the more complex are therequirements for the revenue management system.Adding further internal or external factors influencingprices, such as stock availability, model lifecycles,CO2 emission targets, competitive actions, oroverall macro-economic environment, can supportskimming willingness to pay and increase demandand price forecast accuracy. AI-based models areeven able to forecast the optimal price for a vehicleat a given time and location.Georg Bauer,Co-founder & PresidentIndustry Relations, FairTransparent pricing is at the heart of Fair.We have developed Artificial Intelligencedriven algorithms that ensure supply anddemand are optimally matched so that ourcustomers always get the best possiblemonthly payment for their car subscription.We want our customers to have the rightcar for the right price, and total peaceof mind.Figure 9: End-to-end revenue management based on vehicle transaction price settingPrice optimization according to strategic pricing objectives(Conceptual)GOALTRANSACTION PRICEVolume (Units)Profit ( )DemandMaximize MarketShare / SalesProfitMaximize RevenueMaximize Profit 14Vehicle Transaction Price Elasticitybetween 0 and -1 Elasticity -1 Elasticity -1

3. A transformation roadmapfor pricing in a direct sales omnichannel worldOEMs that transition toward a D2C model can doso to different degrees depending on how muchthey want to disrupt their current indirect salesmodel. The three forms “Crawl”, “Walk”, and “Run”come with different implications and potential forpricing. In this section, we introduce a transformationroadmap for pricing in an omni-channel direct salesworld examining the roles of price strategy, dataand analytics as well as IT and technology.3.1 Shaping price strategy: Buildseamless omni-channel experienceacross purchase typesFigure 10: Internal and external functions oflist priceINTERNAL FUNCTIONS OF LIST PRICE Key communication and controlling function(e.g. revenue forecasting and steering) Reference price integrated in IT and processlandscape (e.g. as base for residual value) Major component in business cases (e.g. newproduct projects)EXTERNAL FUNCTIONS OF LIST PRICE Anchor for competition and customerThe role of the list priceHistorically, list prices have been set andcommunicated by the OEM before they are graduallydiscounted. Companies have good reason for usinglist prices, both from an internal and externalperspective (see Figure 10). Leeway for adjustments and reaction to demandfluctuations Discounts perceived as “win” for customerFigure 11: Three levels of maturity of D2C transformationDegree of D2Ctransformation“CRAWL”“WALK”“RUN” PriceStrategySoft Agency OEM sets and communicateslist prices Agent holds budget to determinetacticals freely; responsible forfinal transaction price Limited cross-channel pricecontrol and price alignment dueto agent flexibilityHybrid Agency OEM sets and communicateslist prices and defines tactics Agent selects tactics to applyto customers Agent with flexibility to givediscounts out of owncommissionFull Agency OEM sets and communicatestransaction prices and ensuressame prices across channels Agent not allowed to givediscounts, full pricing powerby OEM OEM with full price controlacross channelsData &Analytics Traditional pricing based onmarket, customer, and productdata Price differentiation done bydealer, based on experience Rule-based pricing (e.g.discounts based on stock age) Predictive pricing (e.g. byidentifying price elasticitydriver) Intelligent pricing, fullyautomated price setting Discounts based on forecastsfrom other functions Optimized price-volumesteeringIT &Technology Rule-based pricing tool(software or advanced Excel) Multiple legacy systems Advanced pricing platform, e.g.MS Dynamics CRM 365 Platform(rule-based discounts) State-of-the-art automatedpricing solution Advanced revenue management15

Optimal transaction price setting in D2CD2C puts the responsibility for transaction price setting in the hands of OEMs,with all benefits and complexities. OEMs must reflect changes in channeleconomics as well as market intricacies in a new price setting approach with onlyminimal data on actual and historical transaction prices. At the same time, OEMscan now actively manage a greater share of the market margin and move closer tothe customer, which results in greater knowledge about customer preferencesand valuable data on transaction prices.Figure 12: Demand distribution across discountlevels (conceptual illustration)Volume (% of Total)10%5%0%0%5%10%15%20%25%30%Discount Level (%)Data on current market transactions holds valuableinformation for OEMs to set their own prices. It canbe used to approximate the shape of demand curves,determine acceptable discount ranges and setoverall discount budgets. We analyzed transactionprice data across markets and car brands, with thefollowing findings: Overall, transaction prices are approximatelynormally distributed with an average discountof 8-12% Distribution illustrates that about 5% of cars aresold at list price and some are heavily discounted(“long tail”) Discount distributions vary by market and byOEM segment (volume, premium, or luxury)Transaction price setting for OEMs requires themto decide on volume and margin targets. Therefore,OEMs will first need to make a strategic decisionon whether they want to boost volume, maximizerevenues, or focus on profit. For this, OEMs needto estimate existing transaction price distributionsin the market. Based on the total absolute amountof discounts gran

Volkswagen Mercedes-Ben Audi Hyundai Other brand CURRENT RAND 10 90 78 1 1 BMW 1 Tesla 121 66 have pre-ordered an EV 71 use their vehicle daily Georg Bauer Co-Founder & President Industry Relations, Fair Stefan Eling Director Captive Mobility, Santander Consumer Bank Philipp Sayler von Amen