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Volkswagen:Competition From China EVs: Difference between revisions
Volkswagen:Competition From China EVs (view source)
Revision as of 12:30, 6 September 2024
, 6 September 2024→Profitability And Production Costs Of European Made EVs
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* In 2021, a Bernstein analyst, Arndt Ellinghorst estimated that battery prices would have to decline to $60 per kilowatt from $140 per kilowatt-hour for the likes of Skoda and Sixt to make EVs profitably<ref>https://www.businesstimes.com.sg/companies-markets/transport-logistics/carmakers-starting-to-see-improving-margins-on-electric-cars</ref>. | * In 2021, a Bernstein analyst, Arndt Ellinghorst estimated that battery prices would have to decline to $60 per kilowatt from $140 per kilowatt-hour for the likes of Skoda and Sixt to make EVs profitably<ref>https://www.businesstimes.com.sg/companies-markets/transport-logistics/carmakers-starting-to-see-improving-margins-on-electric-cars</ref>. | ||
* Volkswagen said that its ID.2 model (B-segment vehicle) scheduled to arrive in 2026 will cost less than 25,000 euros and will have a profit margin of 6% (1,500)<ref>https://www.autoevolution.com/news/volkswagen-id2-will-be-profitable-at-25000-euros-claims-ceo-thomas-schaefer-213367.html#</ref>. According to the company, the EV will use unified cells which will cut battery cost by 50% in entry-level segment and 30% and in volume segment<ref>https://www.springerprofessional.de/en/automotive-manufacturing/battery/unified-cell-from-volkswagen-to-cut-battery-costs-in-half/19008286</ref>. | * Volkswagen said that its ID.2 model (B-segment vehicle) scheduled to arrive in 2026 will cost less than 25,000 euros and will have a profit margin of 6% (1,500)<ref>https://www.autoevolution.com/news/volkswagen-id2-will-be-profitable-at-25000-euros-claims-ceo-thomas-schaefer-213367.html#</ref>. According to the company, the EV will use unified cells which will cut battery cost by 50% in entry-level segment and 30% and in volume segment<ref>https://www.springerprofessional.de/en/automotive-manufacturing/battery/unified-cell-from-volkswagen-to-cut-battery-costs-in-half/19008286</ref>. | ||
* An analysis by Boston Consulting Group (BCG) established that B-segment EVs produced by European OEMs and sold at 36,000 euros make a profit of 4,000 euros. The Group established that material costs makes up up to 80% of the total delivery cost with battery costs making up 35%. BCG further estimates that offshoring production could reduce costs by 75% while nearshoring could save on production costs by 45% due to reduction of labor and energy costs<ref>https://www.bcg.com/publications/2023/reducing-the-electric-vehicle-manufacturing-costs</ref>. | * An analysis by Boston Consulting Group (BCG) established that B-segment EVs produced by European OEMs and sold at 36,000 euros make a profit of 4,000 euros. The Group established that material costs makes up up to 80% of the total delivery cost with battery costs making up 35%. BCG further estimates that offshoring production could reduce costs by 75% while nearshoring could save on production costs by 45% due to reduction of labor and energy costs<ref>https://www.bcg.com/publications/2023/reducing-the-electric-vehicle-manufacturing-costs</ref>. A study by T&E (based on another Alixpartners study) established that the cost of battery and other content is 63% of the total price of a B-segment Ev. T&E believes that under the right conditions, it would be possible for a European OEM to produce BEVs priced at 25,000 euros. This is in-line with BCG estimate since the price of batteries have been declining since 2019<ref>https://te-cdn.ams3.cdn.digitaloceanspaces.com/files/2023_09_TE_report_Why_affordable_electric_cars_in_2025_are_feasible.pdf</ref>. | ||
[[File:BCG Analysis.png|left|thumb| | [[File:BCG Analysis.png|left|thumb|962x962px|Source: BCG]] | ||
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[[File:T&E BEV est.png|center|thumb|873x873px]] | |||