Guest Blog: From Afterthought to Advantage: Rethinking Rebates in Pricing

Guest Author: Thorsten Lips

For years, sustainability in the automotive industry has been treated mainly as a compliance issue — a way to reduce costs, meet emissions targets, and maintain regulatory approval. But a new report by Berylls by AlixPartners argues that this mindset misses a major opportunity: sustainability can be a source of topline growth and profitability.

Beyond EVs: The Path to True Sustainability

Most original equipment manufacturers (OEMs) focus on electrification and fuel efficiency as the pillars of their sustainability strategy. While electric vehicles (EVs) eliminate tailpipe emissions, the real environmental challenge now lies in the upstream value chain — from raw materials to production.

A truly sustainable vehicle, the report emphasizes, would go further: built with green steel, recycled glass and plastics, vegan interiors, and powered entirely by renewable energy. Every component would be designed for reuse or safe disposal. Although no OEM has yet achieved this fully, the technologies already exist — and those who act first will gain a decisive edge.

Turning Green into Gold

Sustainability, once seen as a cost, is becoming a profit enabler. Berylls’ analysis suggests that offering a “sustainable line” of vehicles — incorporating eco-materials and visibly differentiated design — could deliver up to €290 million in annual profit for a premium German automaker by 2030.

The key lies in consumer psychology. Research shows that around 2–5% of global buyers — the “true believers” — are willing to pay a premium for genuinely sustainable vehicles. As younger, eco-conscious generations gain purchasing power, this segment is expected to grow rapidly, creating new revenue streams for automakers that take sustainability seriously.

From Vision to Value: The TPMC Approach

To help OEMs translate sustainability into tangible business success, Berylls introduces the TPMC framework:

• Tangibilize: Make sustainability visible and measurable through clear claims and data.

• Productize: Transform green features into defined offerings customers can understand.

• Monetize: Select the right pricing model — whether premium add-ons or new recurring “vehicle-as-a-service” models.

• Commercialize: Launch and scale sustainably across markets with targeted marketing, training, and aftersales support.

  
  

Act Now to Lead the Future

With EV adoption slowing and profit pressures rising, OEMs have a rare opportunity to reinvent growth through purpose-driven innovation. Sustainability is no longer a marketing slogan — it’s a new business model.

Those who act now to embed sustainability at the core of their product strategy will not only reduce their environmental footprint but also turn green into gold — driving both impact and income for years to come.

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About the Author

Thorsten Lips is a Partner at Berylls Strategy Advisors, responsible for Pricing. For the past 25 years, he has been working in top management consulting, helping companies to grow and become more profitable. His focus is on B2B2C business globally. In the past, he has been a speaker with PPS and other conferences, as well as a keynote speaker for companies.