At the beginning of the 20th century, there were at least 100 American companies producing expensive cars. The economics of mass production ensured a monopoly of a few large companies over the industry. But today, there are 300 manufacture of electric vehicles- producing companies in China alone.
The traditional model of automobile- manufacturing is falling behind
There are 300 EV- producing companies in China alone. Since batteries and electric motors can be purchased off- the- shelf, the need to spend billions on their development has been avoided. The same type of battery can come in many different shapes and sizes. One type of motor may prove suitable for many types of vehicles. Their performance characteristics can be changed by software. That’s why many small ways are created to earn profits.
“The main reason why EVs are costly is that their batteries are expensive,” says Green. In recent years, battery prices have dropped rapidly, largely due to the “learning effect”: As production volumes increase, manufacturers find ways to improve efficiency, and costs go down. It’s generally assumed that battery prices will continue to decrease as EVs take over more of the car market.
Superior class cars are being produced at several levels
It is very easy for an artist to make a beautiful painting of a car. Even building a few cars is no big deal. But Factory-56 is a different matter. Mercedes Benz’s giant plot is built in Stuttgart, Germany, which goes to show how complex it is to produce cars on such a large scale. Today, superior class cars are being produced at several levels. A variety of options are provided to the customers in them, be it exclusive woods, leather or composite brakes. For all this, thousands of parts have to be brought in the right place, so that the assembly line can function properly. This is a very curdled pudding.
If the coming era is of electric vehicles, then you can believe that China’s preparation in the manufacture of electric vehicles is better than others. Because the business model that has traditionally been used to make high- end luxury cars is no longer economical and practical.