Chinese manufacturers are efficient without compromising the quality of a product, Owen Edwards from Grant Thornton UK noted at NFDA’s Driving Digital 2024.
Constructing a vehicle more efficiently can reduce costs significantly. In fact, Tesla has previously suggested that this can reduce costs by 30%.
There are various ways to take out cost in the construction of a vehicle. For example, how the battery is built, the biometric density of batteries, and the size of the car.
Another area where China looks to improve efficiency is manufacturing timelines.
Typically, it takes more than five years to manufacture, from sourcing to the factory. It has been noted that China aims to cut this timeline short to two and a half years.
Chinese brands are increasingly efficient and BYD is a strong example of this as a vertically integrated manufacturer. Meanwhile manufacturers such as VW are only 35% vertically integrated.
In 2024, the number of dealers representing Chinese brands in the UK continues to increase and there are more BEVs coming through.
However, charging infrastructure in the UK remains a key obstacle in the way of accommodating BEVs. In addition, Edwards states, the average person in the UK cannot afford prices of BEVs.
