Electric Vehicle Battery Supply Strategy Considering Brand Spillover Effect

Electric vehicle manufacturers ensure power battery supply through either direct sourcing or technology cooperation. This paper examines the battery supply strategy of an entrant manufacturer(m2), in a two-tier supply chain that includes a battery supplier (s), an incumbent manufacturer (m1), and the aforementioned entrant. It investigates these strategies under the influence of the brand spillover effect. It reveals that when m1 opts for direct battery procurement, if m2 boasts higher after-sales service standards, adopting a technology cooperation strategy becomes more advantageous. A sweet spot exists wherein, given m2's brand power and after-sales service level fall within a certain range, all supply chain participants can achieve mutual benefits. In scenarios where m1 depends on technology cooperation for its battery supply, it is advisable for m2 to mirror this approach by also engaging in technology cooperation.