Today cost cutting is the mantra in EV manufacturing by any means possible.
Hopefully this will not impact quality & feature enhancement.
On the positive side the cost cutting will bring affordable EVs sooner to the market space as EV makers strive to stake out their market share.
And EV sales should rebound as they near price parity with IC vehicles.
Methinks the concentration on cost cutting will drive some EV makers into the bankruptcy boneyard.
Notably, the surge in affordable EVs from China has heightened the competitive challenges faced by traditional automakers.
In response, these established automotive companies are increasingly relying on their suppliers, spanning from battery materials manufacturers to chip producers. The objective is to streamline costs and expedite the development of cost-effective electric vehicles at a pace that surpasses their initial timelines, according to a report by Reuters.
The rise of inexpensive Chinese electric vehicles has upped the pressure on legacy automakers who have turned to suppliers, from battery materials makers to chipmakers, to squeeze out costs and develop affordable EVs quicker than previously planned.
“Automakers are really now only turning to affordable vehicles, knowing they’ve got to or they will lose out to Chinese manufacturers,” said Andy Palmer, chairman of UK startup Brill Power, which has developed hardware and software to boost EV battery management system performance.
A key advantage for Chinese EV makers as they go global is their dominance in the supply chain, which helps them keep costs low. BYD, for instance, owns the supply chain of its EV batteries, from the raw materials to the finished battery packs. It also designs its own semiconductors.
BYD, an electric-vehicle maker in China that’s close to overtaking Tesla in global EV sales, shared a video earlier this year that sent shivers through the auto industry. The narrator urged China’s EV makers to “demolish the old legends and achieve new world-class brands.”
It isn’t impossible. A key advantage for Chinese EV makers as they go global is their dominance in the supply chain, which helps them keep costs low. BYD, for instance, owns the supply chain of its EV batteries, from the raw materials to the finished battery packs. It also designs its own semiconductors.
That cost advantage has those “old legends” of the auto industry nervous—and racing for answers as China’s cars reach consumers in Europe, Southeast Asia, Australia, and elsewhere.
“What we hear from carmakers today is, ‘We don’t need longer range, we want lower costs,’” Addionics CEO Moshiel Biton told Reuters. His startup makes it easier to produce high-performance batteries at a lower cost.
And OneD Battery Sciences CEO Vincent Pluvinage told the news wire that on recent visits with European carmakers, every meeting began with the same refrain: “‘Reducing costs is now more important than anything else.’”