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Make electric cars profitable

Make electric cars profitable

  • Categories:Industry News
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  • Time of issue:2020-04-30 09:38
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(Summary description)In March 2019, McKinsey & Company's consulting company released "Making Electric Vehicles Profitable". In this ERR, the research team of ERR can research the report and share it with everyone. Welcome to spread

Make electric cars profitable

(Summary description)In March 2019, McKinsey & Company's consulting company released "Making Electric Vehicles Profitable". In this ERR, the research team of ERR can research the report and share it with everyone. Welcome to spread

  • Categories:Industry News
  • Author:
  • Origin:
  • Time of issue:2020-04-30 09:38
  • Views:
Information

In March 2019, McKinsey & Company's consulting company released "Making Electric Vehicles Profitable". In this ERR, the research team of ERR can research the report and share it with everyone. Welcome to spread!

Most OEM manufacturers are not profiting from selling electric cars. But combining factors such as parts and business models can make the business route smoother. Therefore, we have designed a clear road map for the profitability of electric vehicles.

First of all, the development prospects of electric vehicles (EV) are bright. Consumers are more willing to consider buying electric vehicles than ever before, so electric vehicle sales are also growing rapidly. Although the base is small, sales of electric vehicles in major global markets have maintained a 50-60% increase in recent years. More and more car OEMs are launching more new models, making it easier to find the right electric car: In just 2018, original equipment manufacturers introduced about 100 new models, all over the world. 2 million vehicles were sold. Similarly, performance improvements in terms of range, performance, and reliability continue. Regulations in major automotive markets such as China, the European Union and the United States have prompted OEMs to produce more electric vehicles and encourage consumers to buy them.

However, an important issue is that at present, most OEMs are not profiting from the sales of electric vehicles. In fact, the production costs of these cars tend to be $12,000 higher than similar internal combustion engine vehicles (ICEs) for small and medium-sized cars and small utility vehicles (see Table 1). In addition, it is often difficult for automakers to recover these costs solely through pricing. The result: in addition to a few high-end models, almost every electric car sold will suffer losses, which is obviously unsustainable.

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