Which is more profitable for the manufacturer when the production and sales are the same, gasoline cars or pure electric cars? (Why electric cars are more expensive than fuel cars)

Which one is more profitable, gasoline or electric cars, when production and sales are the same?

Hello, I am Xiaomeng, glad to answer your question.

In recent years, under the support of various national policies, electric vehicles have gradually entered our vision, and has a certain status, the future soon, I believe that will gradually replace the existing gasoline vehicles.

So, when the sales volume of gasoline cars and pure electric cars are equal, which manufacturers have higher profits?

Let's start with the manufacturing cost of these two cars, in fact, some of the big automotive brands in the development of the internal combustion engine has dozens of hundreds of years of precipitation, cost control and technological attainment has been very mature, a lot of things can be self-sufficient. And although the electric car is fierce, but with the development of recent years has not been any qualitative breakthroughs, are the side of the R & D side of the mass production cost is high.

This is why the country is now vigorously supporting the pure electric car, electric car costs in the "three electric" costs accounted for 50% -60% that is, batteries, motors, electronic control, and battery costs accounted for "three electric" cost of 70%, so an electric car cost of 70%, so an electric car cost of 70%, so an electric car cost of 70%, so an electric car cost of 70%, so an electric car cost of 70%, so an electric car cost of 70%. The cost of the battery accounts for 70% of the cost of the "three electrics", so the most expensive part of an electric car is the battery. Now most of the domestic electric cars using ternary lithium batteries, but the cost of domestic lithium batteries than the United States, Japan's cost is much higher, so that the domestic electric car is holding a kind of production, I produce my own, the country has to buy, and later, such as large-scale replacement of gasoline cars in the heart of the state of mind in the improvement of the technology to produce and manufacture of pure electric vehicles. Unlike the gasoline car, it has matured to the point that it can be compressed to the lowest cost to build the engine technology.

But I believe that the wisdom of the people of the country is infinite, the same domestic gasoline cars, in the development of many years after today, domestic cars in the country occupy a large proportion of sales, the same believe that in the near future, the technology of electric vehicles after the maturity of the same can be done.

So, gasoline cars and pure electric cars, production and sales are the same, in the country no policy support, gasoline cars to the pure electric car profits than the profit is greater.

The above is my personal opinion, I hope it can help you!

When the production and sales volume of gasoline cars and pure electric cars are the same, which one is more profitable for manufacturers?

Status quo EV's profits are high

Currently, it is the EV's profits that will be high, because there are subsidies in.

Sales will increase in the future

As EVs become more popular in the future, the subsidies will be zeroed out with the trend in the chart above, but the sales will slowly creep up.

And as the country keeps increasing support for charging, overall sales will certainly still go up.

Margins will be lower in the future

Automobiles as commodities, like any other goods, make their profits by removing costs from the selling price. Now the price is still high, mainly because of the three electric technology is still in the high-speed R & D interval, either because it did not reach the mass production capacity, or because of the continued investment in R & D have led to this piece of the cost remains high.

The price of 200,000 to 300,000 cars, the early cost of three electric far more than 50% of the fuel car, the future will certainly decline, and now the cost of this piece of the decline has been more obvious.

Costs are falling, and the selling price will slowly come down, so why is the profit not as good as the fuel car?

The reason is sales.

Now the sales model is basically based on 4S stores, although online marketing, including live form of sales more and more, but the mainstream is still to the store to see the car to buy a car. 4S store is not a car factory open, because of this piece of investment is huge, the operation is more consuming consumables, so it is mostly an investment group or an individual investor to build a 4S store.

The main profit point of the 4S store is repair, maintenance, especially the latter, is regularly required, as long as the store's brand has a certain amount of local ownership, the amount of maintenance is more stable. The electric car is not this piece, so no investors are willing to invest here, also made in today's electric car enterprises, whether Azure or other, is basically self-built experience store is the main, this is also a helpless move.

So the future of electric cars, car companies will reduce profits, which is good for owners, after all, business around less profitable, car companies will focus more on the product up, research and development and manufacturing of high-quality low-cost car to better competitiveness to fight for consumers.

Of course it's pure electric cars.

My family bought a Kandi K11 pure electric car in 16 years, when the official offer 15w, I spent 6w into the hands of the automobile company is equal to say that the car company earned 2 6w. so that pure electric car with the spring up generally, all in the manufacture of pure electric car to take the state subsidies, but the quality of the car is really not good.

Look at the cost of the battery

If the national subsidy for new energy still exists, then the single-vehicle profit is still purely electric cars to be higher, if the subsidy is abolished, then the fuel car is more profitable. This is mainly because the fuel car compared to the electric car has at least hundreds of years of history, its cost control in all aspects of the absolute advantage, while the electric car has just emerged a few years time, many car companies are solely based on the spirit of the newborn calf is not afraid of tigers to engage in the electric car, but also a little bit of the meaning of the duck on the shelf.

Pure electric vehicle manufacturing costs, the battery pack occupies about 35% of the proportion of the motor occupies about 15% of the proportion of the electronic control of about 8% of the proportion of the three together accounted for 50-60% of the cost, plus the vehicle chassis, bodywork, interior components, electronics, etc. accounted for more than 30% of the cost of the price of 100,000 yuan of an electric car, his manufacturing costs About 85-90,000 yuan, and which the battery price fluctuations are very frequent, which leads to the same car, fuel version and electric version of the price is close to the case, the electric version of the configuration has no advantage, to configure the fuel version of the same, then the price is absolutely not low.

In contrast to the fuel car, most of the models of the current powertrain accounted for the proportion of the cost reduced to about 20%, plus the chassis, body, interior, a variety of taxes and fees, and its single-vehicle profit in 8-15%, of course, given the prevalence of many models of terminal concessions, and ultimately the actual profit will be reduced. Electric vehicles in the sales period need to take into account the ability of consumers to accept, the guide price can not be set too high, mainly relying on subsidies to survive, so his actual profit per car is lower than the fuel car.

Fuel vehicles, although less environmentally friendly, energy-saving than electric vehicles, but it has gone through hundreds of years, every detail of his body has gone through an unknown number of times of testing, optimization before finally see the current appearance, such as Toyota's TNGA platform, his purpose is to reduce the cost of building vehicles as much as possible, while taking into account the performance of all aspects of the vehicle, the parameters of the balanced, high-quality, this is definitely not the case. This is definitely not one or two years or even one or two decades to be able to come up with something, he is the need for decades of experience, data integration, repeated testing, constant failure, and ultimately molding, we see only the achievements of others, but the achievements of the things behind only they know best. Fuel car is like ten years of hard work to become famous, without the ten years of time before the struggle will not have the last beautiful hit.

Pure electric vehicles, although more environmentally friendly, energy-saving, but his course of development compared to the fuel car is too short, many car companies in fact is to buy people's batteries back to assemble the finished product, belonging to the side of the sale while the research, the consumer to buy an electric car can only act as a mouse a lot of times. And don't be confused by the so-called battery technology breakthroughs on the Internet, compared to the fuel car powertrain, pure electric vehicle powertrain is still very immature, we are groping for stones to cross the river. There is another point, at present most of the electric car many parts, technology are imported, really have independent intellectual property rights is not rare, just the technology transfer fee is not low.

In summary, the fuel car in recent years, single-vehicle profits are actually declining, after all, the competition is white-hot, labor costs skyrocketed, single-vehicle prices do not move, the profits are seriously shrinking, but compared to electric cars still have some advantages. The above is my answer, I hope to help you.