Optimal pricing strategy for new energy vehicle manufacturers by introducing battery leasing mode under subsidies

Purpose The rapid advancement of battery leasing models in new energy vehicles (NEVs) presents cost advantages, such as reduced upfront expenditures, enhanced charging flexibility and accelerated energy replenishment via battery swapping. However, widespread adoption hinges on resolving critical challenges, such as consumer preferences for low-cost solutions, residential charging infrastructure limitations and the necessity for robust energy replenishment systems to mitigate operational costs, service accessibility and charging delays. It is necessary to investigate the optimal pricing strategy for NEVs by introducing battery leasing and subsidies. Design/methodology/approach This study constructs two analytical models to examine manufacturers' optimal strategies under integrated battery leasing systems and evaluates the pricing dynamics under government subsidy regimes. Findings The results demonstrate that manufacturer-operated leasing reduces retail battery prices through dual-channel coordination. A threshold effect emerges in the leasing-service fee relationship: when leasing prices fall below sales prices, both charging and swapping fees decrease with rising leasing rates. Government interventions have different impacts: consumer subsidies expand battery-swapping NEV demand, while manufacturer subsidies boost charging NEV adoption. Notably, subsidizing consumers alone generates lower profits than in non-subsidy scenarios as production costs escalate, whereas exclusive manufacturer subsidies outperform dual-recipient scenarios. Originality/value These findings provide operational guidelines for NEV manufacturers in battery leasing implementation and offer policymakers evidence-based insights into subsidy allocation strategies for sustainable transportation transitions.