Karthik Reddy Solipuram’s Post

Electrical Engineer | Specializing in EV Powertrain & Cost Optimization Strategies | Value Engineering

9mo

This explanation of vertical integration in EVs is excellent for educating people. Cost margins would decrease with vertical integration, improving the supply chain in the process. However, this requires a significant capital outlay. In this swiftly growing sector, vertical integration can give OEMs a huge market share if managed properly.

Michael Sura

⚡Energy and transport analyst, strategist, and advisor⚡ Supporter of a sustainable future. The first aid provider for #hopium overdose

9mo Edited

👉The power of vertical integration. 💪 👉Vertical integration, in principle, enables a company to control various aspects of the supply chain, manufacturing process, and distribution channels, leading to reduced costs, growing sales, and maximizing profits by improving business operations. 👉To put it in layman's terms, by eliminating middlemen companies can cut supplier margins, while also gaining better control over their supply chain. 👉But vertical integration has some disadvantages like high capital requirements and, the risk of increased organizational inefficiency (paradoxically), if handled unwisely, vertical integration can be catastrophic to a company. 👉Chinese company BYD is the world's first fully vertically integrated EV maker. 1️⃣ 👉Vertical integration is also a dream of Elon Musk's, by the way. According to Elon Musk, #Tesla needs greater vertical integration to manufacture an EV below $25k. 😊 👉#Tesla announced in 2020 that it would be getting spodumene to make lithium from its own mine in Nevada. 👉Elon Musk, when will ⛏ start? 😊 👉I've made a little comparison between BYD Seal and VW ID.4 in terms of their battery-electric powertrain. 👉The BYD 8-in-1 powertrain includes the BMS, VCU, inverter, PDU, OBC-DC/DC merged into one unit, and the gearbox/e-motor in another. All components are produced in-house by BYD. 👉VW has a different approach, it gets almost everything from its suppliers. 👉Take a look at the picture below to see the details. ⬇ 👉BYD can produce very affordable, technologically advanced EVs, whether it's due to vertical integration, it's hard to say for me. 👉What do you think about it? 👉 Share if you want to spread the word 👈 #vw #byd #tesla #ev

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Yimin Zhu

CTO, OneD Battery Sciences, Palo Alto, Silicon Valley
9mo
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Like the EV comparison of BYD and VW, in a simple way
Michael Sura

⚡Energy and transport analyst, strategist, and advisor⚡ Supporter of a sustainable future. The first aid provider for #hopium overdose
9mo Edited

👉The power of vertical integration. 💪 👉Vertical integration, in principle, enables a company to control various aspects of the supply chain, manufacturing process, and distribution channels, leading to reduced costs, growing sales, and maximizing profits by improving business operations. 👉To put it in layman's terms, by eliminating middlemen companies can cut supplier margins, while also gaining better control over their supply chain. 👉But vertical integration has some disadvantages like high capital requirements and, the risk of increased organizational inefficiency (paradoxically), if handled unwisely, vertical integration can be catastrophic to a company. 👉Chinese company BYD is the world's first fully vertically integrated EV maker. 1️⃣ 👉Vertical integration is also a dream of Elon Musk's, by the way. According to Elon Musk, #Tesla needs greater vertical integration to manufacture an EV below $25k. 😊 👉#Tesla announced in 2020 that it would be getting spodumene to make lithium from its own mine in Nevada. 👉Elon Musk, when will ⛏ start? 😊 👉I've made a little comparison between BYD Seal and VW ID.4 in terms of their battery-electric powertrain. 👉The BYD 8-in-1 powertrain includes the BMS, VCU, inverter, PDU, OBC-DC/DC merged into one unit, and the gearbox/e-motor in another. All components are produced in-house by BYD. 👉VW has a different approach, it gets almost everything from its suppliers. 👉Take a look at the picture below to see the details. ⬇ 👉BYD can produce very affordable, technologically advanced EVs, whether it's due to vertical integration, it's hard to say for me. 👉What do you think about it? 👉 Share if you want to spread the word 👈 #vw #byd #tesla #ev
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Christian E.
8mo
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An interesting post by Michael Sura on the power of #verticalintegration. That seems to me as well a reason why especially the German automotive sector is struggling. And that was already discussed years ago when Tesla was scaling. So when acquiring companies to grow suppliers and OEM should always balance this strategy with buying vertical integrated companies as well. Vitesco Technologies is popping into my mind that was currently acquired by Schaeffler. Wouldn’t it be on basis of the thought of the power of vertical integration more interesting for companies like for example Infineon Technologies (I.e. vertical integration of the power module) or on the other side Volkswagen Group (I.e.vertical integration of the power electronics and motor competencies) to have acquired them? Which other examples could be mentioned? #electrification #automotive #transformation
Michael Sura

⚡Energy and transport analyst, strategist, and advisor⚡ Supporter of a sustainable future. The first aid provider for #hopium overdose
9mo Edited

👉The power of vertical integration. 💪 👉Vertical integration, in principle, enables a company to control various aspects of the supply chain, manufacturing process, and distribution channels, leading to reduced costs, growing sales, and maximizing profits by improving business operations. 👉To put it in layman's terms, by eliminating middlemen companies can cut supplier margins, while also gaining better control over their supply chain. 👉But vertical integration has some disadvantages like high capital requirements and, the risk of increased organizational inefficiency (paradoxically), if handled unwisely, vertical integration can be catastrophic to a company. 👉Chinese company BYD is the world's first fully vertically integrated EV maker. 1️⃣ 👉Vertical integration is also a dream of Elon Musk's, by the way. According to Elon Musk, #Tesla needs greater vertical integration to manufacture an EV below $25k. 😊 👉#Tesla announced in 2020 that it would be getting spodumene to make lithium from its own mine in Nevada. 👉Elon Musk, when will ⛏ start? 😊 👉I've made a little comparison between BYD Seal and VW ID.4 in terms of their battery-electric powertrain. 👉The BYD 8-in-1 powertrain includes the BMS, VCU, inverter, PDU, OBC-DC/DC merged into one unit, and the gearbox/e-motor in another. All components are produced in-house by BYD. 👉VW has a different approach, it gets almost everything from its suppliers. 👉Take a look at the picture below to see the details. ⬇ 👉BYD can produce very affordable, technologically advanced EVs, whether it's due to vertical integration, it's hard to say for me. 👉What do you think about it? 👉 Share if you want to spread the word 👈 #vw #byd #tesla #ev
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Paul Varella

Professor of Organizational Studies | Bissett School of Business - MRU | Sustainable Development & Ethics
9mo
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I question whether a corporation like BYD can develop core competencies on all those different fronts, including batteries, power trains, controllers, and so on. They will, in the first instance, be nimbler and get a quicker integration of all factors, especially in the digital co-functioning of all different components. From my perspective, the outsourced model, like VW's, is more likely to be more efficient and effective in the long run. Such a model will, in time, produce stronger competencies amongst the many players. Funding, strategic focus, and supporting strategic implementation approaches will be better attuned to each component. Tesla's fully integrated model has helped them be fast from the start. However, it is already showing its critical limitations. Customers are unhappy with their distribution and service functions. Tesla's costs are not lower than those of competitors, they have lost focus on product development, and their automobile models are starting to look tired. Time will tell.
Michael Sura

⚡Energy and transport analyst, strategist, and advisor⚡ Supporter of a sustainable future. The first aid provider for #hopium overdose
9mo Edited

👉The power of vertical integration. 💪 👉Vertical integration, in principle, enables a company to control various aspects of the supply chain, manufacturing process, and distribution channels, leading to reduced costs, growing sales, and maximizing profits by improving business operations. 👉To put it in layman's terms, by eliminating middlemen companies can cut supplier margins, while also gaining better control over their supply chain. 👉But vertical integration has some disadvantages like high capital requirements and, the risk of increased organizational inefficiency (paradoxically), if handled unwisely, vertical integration can be catastrophic to a company. 👉Chinese company BYD is the world's first fully vertically integrated EV maker. 1️⃣ 👉Vertical integration is also a dream of Elon Musk's, by the way. According to Elon Musk, #Tesla needs greater vertical integration to manufacture an EV below $25k. 😊 👉#Tesla announced in 2020 that it would be getting spodumene to make lithium from its own mine in Nevada. 👉Elon Musk, when will ⛏ start? 😊 👉I've made a little comparison between BYD Seal and VW ID.4 in terms of their battery-electric powertrain. 👉The BYD 8-in-1 powertrain includes the BMS, VCU, inverter, PDU, OBC-DC/DC merged into one unit, and the gearbox/e-motor in another. All components are produced in-house by BYD. 👉VW has a different approach, it gets almost everything from its suppliers. 👉Take a look at the picture below to see the details. ⬇ 👉BYD can produce very affordable, technologically advanced EVs, whether it's due to vertical integration, it's hard to say for me. 👉What do you think about it? 👉 Share if you want to spread the word 👈 #vw #byd #tesla #ev
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Honghao Tan

Principal Engineer at Changan US R&D Center
9mo
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Very interesting comparison on the vertical integration. Thanks Michael Sura'. It comes to my attention that in 2020, the total sale of BEV of BYD is less than 60k. This means the existing Tier1 has no incentive to work closely with BYD on the NEW design. The existing design for ICE may work after little customization. But affordable, I agree with Elon Mask, NO. So if BYD is serious on the affordable BEV, you get to depend on yourself instead of incumbent Tier 1. Once the total production is more than 2m, 3m, or whatever, just like GM spined off Delphi. BYD may do the same. It is just economics.
Michael Sura

⚡Energy and transport analyst, strategist, and advisor⚡ Supporter of a sustainable future. The first aid provider for #hopium overdose
9mo Edited

👉The power of vertical integration. 💪 👉Vertical integration, in principle, enables a company to control various aspects of the supply chain, manufacturing process, and distribution channels, leading to reduced costs, growing sales, and maximizing profits by improving business operations. 👉To put it in layman's terms, by eliminating middlemen companies can cut supplier margins, while also gaining better control over their supply chain. 👉But vertical integration has some disadvantages like high capital requirements and, the risk of increased organizational inefficiency (paradoxically), if handled unwisely, vertical integration can be catastrophic to a company. 👉Chinese company BYD is the world's first fully vertically integrated EV maker. 1️⃣ 👉Vertical integration is also a dream of Elon Musk's, by the way. According to Elon Musk, #Tesla needs greater vertical integration to manufacture an EV below $25k. 😊 👉#Tesla announced in 2020 that it would be getting spodumene to make lithium from its own mine in Nevada. 👉Elon Musk, when will ⛏ start? 😊 👉I've made a little comparison between BYD Seal and VW ID.4 in terms of their battery-electric powertrain. 👉The BYD 8-in-1 powertrain includes the BMS, VCU, inverter, PDU, OBC-DC/DC merged into one unit, and the gearbox/e-motor in another. All components are produced in-house by BYD. 👉VW has a different approach, it gets almost everything from its suppliers. 👉Take a look at the picture below to see the details. ⬇ 👉BYD can produce very affordable, technologically advanced EVs, whether it's due to vertical integration, it's hard to say for me. 👉What do you think about it? 👉 Share if you want to spread the word 👈 #vw #byd #tesla #ev
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Michael Sura

⚡Energy and transport analyst, strategist, and advisor⚡ Supporter of a sustainable future. The first aid provider for #hopium overdose
9mo Edited
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👉The power of vertical integration. 💪 👉Vertical integration, in principle, enables a company to control various aspects of the supply chain, manufacturing process, and distribution channels, leading to reduced costs, growing sales, and maximizing profits by improving business operations. 👉To put it in layman's terms, by eliminating middlemen companies can cut supplier margins, while also gaining better control over their supply chain. 👉But vertical integration has some disadvantages like high capital requirements and, the risk of increased organizational inefficiency (paradoxically), if handled unwisely, vertical integration can be catastrophic to a company. 👉Chinese company BYD is the world's first fully vertically integrated EV maker. 1️⃣ 👉Vertical integration is also a dream of Elon Musk's, by the way. According to Elon Musk, #Tesla needs greater vertical integration to manufacture an EV below $25k. 😊 👉#Tesla announced in 2020 that it would be getting spodumene to make lithium from its own mine in Nevada. 👉Elon Musk, when will ⛏ start? 😊 👉I've made a little comparison between BYD Seal and VW ID.4 in terms of their battery-electric powertrain. 👉The BYD 8-in-1 powertrain includes the BMS, VCU, inverter, PDU, OBC-DC/DC merged into one unit, and the gearbox/e-motor in another. All components are produced in-house by BYD. 👉VW has a different approach, it gets almost everything from its suppliers. 👉Take a look at the picture below to see the details. ⬇ 👉BYD can produce very affordable, technologically advanced EVs, whether it's due to vertical integration, it's hard to say for me. 👉What do you think about it? 👉 Share if you want to spread the word 👈 #vw #byd #tesla #ev
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Kristy Lovejoy
9mo
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↕️ Vertical integration. How China’s BYD built a better, cheaper EV. 💰💰Manufacturing all your own components is massively capital intensive. BYD was showered with state money, and backed with securing all the raw materials needed for drivetrains and batteries since at least 2005. China also has significantly lower labor rates. 🇺🇸Tesla already boasts significant vertical integration than the Big 3 with its gigacasting, diecasting nearly 400 components of the underbody in one piece. Though capital intensive and technically challenging, imagine the cost savings and reduction in complexity in managing a supply chain of 400 components. ⚡️Tesla’s breakthrough adds to an already reduced overall component makeup of electric vehicles vs their internal combustion counterparts. Tesla’s drivetrain has about 20 moving parts to 200 in conventional drivetrains. Overall, Tesla’s Model 3 comprises 10,000 components, whereas traditional combustion engine vehicles are in the 30,000 ballpark. As we know, the less parts, the less failure points; the less complexity in manufacturing, and reduced warranty and recall costs 🥱Besides Tesla, US OEMs have been asleep at the wheel. Can they make the monumental leap to compete with BYD? 🏭 Will the US OEMs drop all ICE models, convincing the US government to fund expensive plant conversions? 🏭🏭🏭Will Ford, Stellantis and GM merge to form one mega US automaker, and insource much of its supply chain to vertically integrate? 🛻Will the OEMs drop EV sedans and focus on ICE and EV trucks? 🔮US automakers have limited options and limited time to retain the North American market. How do you see this playing out?
Michael Sura

⚡Energy and transport analyst, strategist, and advisor⚡ Supporter of a sustainable future. The first aid provider for #hopium overdose
9mo Edited

👉The power of vertical integration. 💪 👉Vertical integration, in principle, enables a company to control various aspects of the supply chain, manufacturing process, and distribution channels, leading to reduced costs, growing sales, and maximizing profits by improving business operations. 👉To put it in layman's terms, by eliminating middlemen companies can cut supplier margins, while also gaining better control over their supply chain. 👉But vertical integration has some disadvantages like high capital requirements and, the risk of increased organizational inefficiency (paradoxically), if handled unwisely, vertical integration can be catastrophic to a company. 👉Chinese company BYD is the world's first fully vertically integrated EV maker. 1️⃣ 👉Vertical integration is also a dream of Elon Musk's, by the way. According to Elon Musk, #Tesla needs greater vertical integration to manufacture an EV below $25k. 😊 👉#Tesla announced in 2020 that it would be getting spodumene to make lithium from its own mine in Nevada. 👉Elon Musk, when will ⛏ start? 😊 👉I've made a little comparison between BYD Seal and VW ID.4 in terms of their battery-electric powertrain. 👉The BYD 8-in-1 powertrain includes the BMS, VCU, inverter, PDU, OBC-DC/DC merged into one unit, and the gearbox/e-motor in another. All components are produced in-house by BYD. 👉VW has a different approach, it gets almost everything from its suppliers. 👉Take a look at the picture below to see the details. ⬇ 👉BYD can produce very affordable, technologically advanced EVs, whether it's due to vertical integration, it's hard to say for me. 👉What do you think about it? 👉 Share if you want to spread the word 👈 #vw #byd #tesla #ev
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R. John Jacobs

Controller | Improver | Designer | Team-Player | Analyst
9mo
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Communication and integration seem to be far more difficult to manage when outsourced then the benefits of having parts production outsourced to experts. Cost savings, development speed, parts communication and integration to one big unit didnt happen? Happened at first, analog days are over! But you need the resources, need the cash, knowhow, production capacity, line workers, etc. Yes, Elon was thinking way ahead but reality is not with a snip of a finger.... Communication and integration, thats the key. If parts come from different names companies, who cares?!? The harmony at the end is the important aspect. VW, get you ?hit together, and represent!!!
Michael Sura

⚡Energy and transport analyst, strategist, and advisor⚡ Supporter of a sustainable future. The first aid provider for #hopium overdose
9mo Edited

👉The power of vertical integration. 💪 👉Vertical integration, in principle, enables a company to control various aspects of the supply chain, manufacturing process, and distribution channels, leading to reduced costs, growing sales, and maximizing profits by improving business operations. 👉To put it in layman's terms, by eliminating middlemen companies can cut supplier margins, while also gaining better control over their supply chain. 👉But vertical integration has some disadvantages like high capital requirements and, the risk of increased organizational inefficiency (paradoxically), if handled unwisely, vertical integration can be catastrophic to a company. 👉Chinese company BYD is the world's first fully vertically integrated EV maker. 1️⃣ 👉Vertical integration is also a dream of Elon Musk's, by the way. According to Elon Musk, #Tesla needs greater vertical integration to manufacture an EV below $25k. 😊 👉#Tesla announced in 2020 that it would be getting spodumene to make lithium from its own mine in Nevada. 👉Elon Musk, when will ⛏ start? 😊 👉I've made a little comparison between BYD Seal and VW ID.4 in terms of their battery-electric powertrain. 👉The BYD 8-in-1 powertrain includes the BMS, VCU, inverter, PDU, OBC-DC/DC merged into one unit, and the gearbox/e-motor in another. All components are produced in-house by BYD. 👉VW has a different approach, it gets almost everything from its suppliers. 👉Take a look at the picture below to see the details. ⬇ 👉BYD can produce very affordable, technologically advanced EVs, whether it's due to vertical integration, it's hard to say for me. 👉What do you think about it? 👉 Share if you want to spread the word 👈 #vw #byd #tesla #ev
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Nina Berg

Development Manager, Sustainability and Future Fuel Plant Concepts
9mo
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Make or buy are strategic decisions each company need to make. It does not have to be a static choice! The 2 options require different competencies of your personel! Buying core technology is not like buying groceries at your store - market insights, partner development and co-creation needs to be properly lead to stay competitive. #energytransition #competencies #sourcing
Michael Sura

⚡Energy and transport analyst, strategist, and advisor⚡ Supporter of a sustainable future. The first aid provider for #hopium overdose
9mo Edited

👉The power of vertical integration. 💪 👉Vertical integration, in principle, enables a company to control various aspects of the supply chain, manufacturing process, and distribution channels, leading to reduced costs, growing sales, and maximizing profits by improving business operations. 👉To put it in layman's terms, by eliminating middlemen companies can cut supplier margins, while also gaining better control over their supply chain. 👉But vertical integration has some disadvantages like high capital requirements and, the risk of increased organizational inefficiency (paradoxically), if handled unwisely, vertical integration can be catastrophic to a company. 👉Chinese company BYD is the world's first fully vertically integrated EV maker. 1️⃣ 👉Vertical integration is also a dream of Elon Musk's, by the way. According to Elon Musk, #Tesla needs greater vertical integration to manufacture an EV below $25k. 😊 👉#Tesla announced in 2020 that it would be getting spodumene to make lithium from its own mine in Nevada. 👉Elon Musk, when will ⛏ start? 😊 👉I've made a little comparison between BYD Seal and VW ID.4 in terms of their battery-electric powertrain. 👉The BYD 8-in-1 powertrain includes the BMS, VCU, inverter, PDU, OBC-DC/DC merged into one unit, and the gearbox/e-motor in another. All components are produced in-house by BYD. 👉VW has a different approach, it gets almost everything from its suppliers. 👉Take a look at the picture below to see the details. ⬇ 👉BYD can produce very affordable, technologically advanced EVs, whether it's due to vertical integration, it's hard to say for me. 👉What do you think about it? 👉 Share if you want to spread the word 👈 #vw #byd #tesla #ev
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Ali Khawaja

Educator | Startup Mentor | Mental Health Campaigner | TEDx Speaker | Blockchain Researcher | NFT Enthusiast | ICF Coach | Photographer | Foodie | Biker | LEGO Architect | Ninja
8mo
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Check out this article on Elon Musk's insights about BYD and the electric vehicle market in China. These perspectives are perfect for anyone looking to understand the dynamics of the EV industry and the role of major players. Embrace this knowledge to stay informed about the latest trends and developments. https://lnkd.in/dSDA426C #EV #ElonMusk #BYD #China #TechTrends #Innovation #AutomotiveIndustry

Elon Musk once mocked China’s BYD. Now it’s running circles around Tesla | CNN Business

edition.cnn.com
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César Beltrán Miralles
6mo
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Tesla's new Cybertruck with dry cathode 4680 battery cells represents a groundbreaking leap in EV technology, driving down costs and boosting efficiency. - 🚀 First-ever Cybertruck with dry cathode 4680 cells unveiled, enhancing battery efficiency. - 🔋 Tesla's in-house production of 4680 cells promises significant cost savings. - 🌍 Dry cathode technology reduces energy use and eliminates toxic solvents in manufacturing. - 🏭 Scaled production aims to achieve cost parity with external suppliers by year-end. - 📈 Validation testing started in July, setting the stage for lower costs and higher profits. #Tesla #EVInnovation #BatteryTechnology - 🎉 A milestone reflecting five years of dedicated research and development. - 🛠️ The dry cathode process cuts down on factory space and energy consumption. - 🌐 Ensures greater resilience against geopolitical changes in the battery supply chain. - 💡 Part of Tesla's strategy to control its supply chain and manufacturing process. - 🚗 Could reshape the EV industry by enabling faster production and lower costs. https://lnkd.in/gVydMVxx

Tesla's 1st-ever dry cathode Cybertruck could be game-changer for EVs

interestingengineering.com

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