Strategy Analytics: Auto Makers Raise Automation and Spin-Off Combustion and Hybrid Operations As They Become "All-Electric"

Competing Chinese Auto Makers Start Exports in Significant Volumes

Auto makers have restructured their businesses and strategies to become “all-electric” as the European Union and other national governments begin mandating sales bans of new combustion engine-powered light vehicles. The Strategy Analytics’ Electric Vehicle Service (EVS) report: OEM Hybrid and Electric Vehicle Strategies: Global OEMs Raise Production Capacity For "All-Electric" While Chinese OEMs Begin Exports sees auto makers streamlining their business in an effort to raise investment to become “all-electric,” as well as lowering production cost to mitigate the cost premium in electric vehicles caused mainly by batteries.

“Streamlining efforts include the increased levels of manufacturing automation, the use of mega-castings to reduce component count and the increased use of simulation to lower development cost,” says Kevin Mak, principal analyst in the Global Automotive Practice (GAP). “Furthermore, legacy combustion engine and hybrid powertrain businesses are now being spun-off from the auto groups to raise focus to the surviving electric vehicle business. This comes at a time when Chinese auto makers are starting to export their vehicles to other market regions in significant volumes. These auto makers have a ten-year head-start in the electric vehicle market, backed by economies of scale and a battery supply chain dominated by Chinese vendors.”

Source: Strategy Analytics, Inc.

#SA_Automotive

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