Does " Driving Range " really matter?: The hidden cost of Internal Combustion Engine Vehicles and the potentially new value proposition of Electric Vehicles: Two cases from urban and rural Japan

This article proposes the selection model of optimal powertrain for usage conditions especially between Internal Combustion Engine Vehicles (ICE vehicles) and Battery Electric Vehicles (BEVs), which is possible “Disruptive Innovation” stated by Christensen (1997). Using the statistics provided by official data of Japan, author estimated the average of actual maximum driving range of ICE vehicle currently sold. The analysis revealed that the actual fuel efficiency and maximum driving range of ICE vehicles is much lower than nominal one published by OEMs. After that, citing two cases ofJapan, author examines the fit between the usage pattern and the choice of power train. Discussing these cases and analysis, the author concludes that that the driving range of BEV dose not solely matter for optimal choice of powertrain. Rather, the driving range and the fit between usage patterns and the availability of “charging place” jointly affect to the optimal choice