Several insights come out of a vehicle tear down session Japan ran for its auto parts suppliers recently. Among them, piece part counts in EVs from China are much lower than EU or NA auto maker EVs.
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Chinese EV SECRETS revealed by Japan! Chinese EV manufacturers are achieving notable cost efficiencies by streamlining production processes and parts usage, as highlighted during the recent electric vehicle disassembly exhibition attended by Japanese auto parts manufacturers. By integrating multiple components into single, multifunctional parts, Chinese automakers reduce complexity and assembly time, which not only keeps production costs lower but also makes repair and maintenance more straightforward. See EVinfo.net's article: https://lnkd.in/gZ2pnmeb For Japanese manufacturers, renowned for their advanced automotive parts production, these insights underscore the competitive advantage Chinese automakers have established in EV manufacturing. In October, Japanese auto parts manufacturers from central Japan’s Chubu region attended a Chinese electric vehicle disassembly exhibition. The exhibition organized by Sanyo Trading provided Japanese auto parts manufacturers with an in-depth look at the cost-effective design strategies employed by Chinese EV makers, exemplified by models like the BYD Atto 3. Priced at approximately $20,000, the Atto 3 showcases how hyper-integration of components drives down manufacturing costs and reduces vehicle weight. The e-axle electric drive, which consolidates eight key parts—including the motor, inverter, gearbox, charger, and AC converter—into a single unit, was particularly impressive to the 70 Japanese component manufacturers in attendance. “I was shocked how few parts there are in BYD electric cars. We want to use the experience gained by the Chinese to advance in the electric vehicle sector,” said a representative of Nissin Precision Machines. “Chinese manufacturers prioritize cost reduction as much as possible. They have a different attitude to quality than Japanese manufacturers,” commented a representative of Sanyo Trading. Integrated parts, mass production, component sharing, and a comprehensive vertically integrated supply chain helps China keep EV prices down. Lower cost of labor, intense domestic competition, and significant subsidies are also a part of the equation. Bloomberg reported that China’s EV makers got $231 Billion in aid over fifteen years, ending last year. The availability of a low-cost, hardworking labor force in China is a crucial factor in maintaining the cost efficiency that allows Chinese brands to produce increasingly affordable EVs. Can the US catch up? @evinfo.net thinks so. Our higher cost of labor will ensure that our prices are never as low. However, other innovations such as vertical integration of batteries is under way at nearly every OEM. EVinfo.net is an EV-influencer led publication, offering sponsored articles, interviews and more to the EV industry: https://lnkd.in/gH5Gdqb7 Sign up for the EVinfo.net e-news, coming in 2025: https://lnkd.in/gHq6iA2p #electricvehicles