Mobile communication technology and consumer demand: Empirical evidence of China's automobile industry

Abstract

With the extensive adoption of electrification technology in China's new energy vehicle market, traditional automakers are accelerating their transition towards electrification, thereby reshaping the competitive landscape. Meanwhile, mobile communication technology, which serves as the foundation of networking and intelligent development, not only facilitates the rapid emergence of new automotive manufacturers but also introduces novel opportunities and challenges to the new energy vehicle industry. This study employs a discrete choice model to empirically analyze how network configuration impacts the sales of new energy vehicles, aiming to explore how network connectivity empowers these vehicles in the post-subsidy era. The findings demonstrate that: (1) The mobile network configuration can positively affect the market share of new energy vehicle products, among which consumer satisfaction plays a partial mediating role. (2) From the perspective of specific network configuration, the impact on automotive market share is mainly driven by the role of 4G network, while the impact of 4G to 5G network upgrade is a gradual process. (3) For domestic car brands and car brands with relatively low prices, network integration plays a more obvious role in improving the car market share.