Electric Vehicles (EVs) Procurement Intelligence
In this Electric Vehicle procurement intelligence report, we have estimated the pricing of the key cost components. Vehicle cost, Financing, Insurance, Purchase Taxes, Annual Registration Fee, Maintenance and Other costs. The other costs typically include home charger cost, electricity purchase, liquid fuel purchase, liquid fuel tax and electricity tax. Vehicle cost alone constitutes 49% of the total cost of ownership. Since the EVs utilize Lithium-ion batteries to run the electric motors, the cost of these batteries are very high and hold 45 - 50% of the total vehicle’s cost, which results to the higher price of every unit. Maintenance costs of an electric vehicle is $315 - $325 lesser in comparison to ICE vehicle if it used as per the maintenance guidelines outlined by the manufacturer.
Order your copy of the Electric Vehicles (EVs) category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Operational Capabilities - Electric Vehicles
- Industry Served - 20%
- Years In Service - 15%
- Revenue Generated - 15%
- Employee Strength - 15%
- Geographical Service Provision - 15%
- Certifications - 10%
- Key Clients - 10%
Functional Capabilities - Electric Vehicles
- Type of EV (BEV / PHEV) - 25%
- Driving Range - 25%
- Power & Torque - 20%
- Charging Specifications - 10%
- Energy Consumption - 10%
- Type of Battery & Capacity - 5%
- Others - 5%
Rate Benchmarking
The prices of electric vehicles vary by several factors such as the type of vehicle (i.e. battery electric, hybrid, etc.), brand & model, type of battery, powertrain, driving range, etc. The base price (MSRP + DST + Tax) of an all-electric vehicle would start as low as USD 19,900 and will go up to USD 251,000 for the most expensive pick.
Regionally, EVs are less expensive in China as compared to U.S. or European nations. For instance, in China, the average price of EVs were €66,500 during 2015-16. This has now got reduced to €31,500 in 2023-24 which is a decline of 6.9% over the past 7 years. Whereas prices of EVs has increased by over 12.4% and 16.9% in U.S. and Europe, respectively over the same timeframe. Key reasons for EVs being more economical in China include lower cost of production, intense competition among local OEMs and government incentives.
Supplier Newsletter
- In June 2023, General Motors has announced that it had acquired Israel-based battery software startup ALGOLiON Ltd. This acquisition will help General Motors to integrate its electric vehicles with a system to identify abnormalities in performance of batteries, to prevent risks such as thermal runaway propagation occurrences.
- In February 2023, Apollo Future Mobility Group announced acquisition of WM Motor Global Investment Limited. Apollo Future Mobility Group is strategizing to prioritize its smart EV business and looks forward to strongly hold its position as a leading mobility services provider. This acquisition will support the group to expand the business by releasing its next generation concepts and achievements in technology research and development to the market.
- In August 2022, BorgWarner Inc. has announced the acquisition of an EV charging solution provider Rhombus Energy Solutions. This acquisition will support BorgWarner with technology that will enable it to expand its EV portfolio in Northern America and will also enhance its European charging operations. In addition, it will boost its position in the market for electric vehicles. The company is concentrating on supporting a few essential components of the infrastructure for electric mobility, such as charging, in addition to providing cutting-edge technology for electric drivetrains.
Electric Vehicles (EVs) Sourcing Intelligence Highlights
- The global electric vehicles category is moderately fragmented, with top market players based in parts of Asia, Europe, and North America.
- China is the largest manufacturer of EVs and exporter of EV batteries across the world, particularly in Europe.
- Despite being a competitive industry, the bargaining power of buyers is low as electric vehicles encompass a higher cost of production, and due to costlier batteries and other technical aspects, the scope of negotiation is almost negative.
- Vehicle cost, financing, insurance, purchase taxes, annual registration fee, maintenance costs, and other additional expenses are the major cost components of this category. Other expenses can be further bifurcated into home charger cost, electricity purchase, liquid fuel purchase, electricity taxes, and liquid fuel taxes.
List of Key Suppliers
- BMW AG
- Tesla, Inc.
- Volkswagen AG
- General Motors Company
- BYD Company Limited
- Mercedes-Benz Group AG
- Nissan Motor Co., Ltd.
- Toyota Motor Corporation
- SAIC Motor Corporation Limited
- Stellantis N.V.
- Ford Motor Company
- Hyundai Motor Company
- Renault SAS
- XPeng Inc.
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Electric Vehicles (EVs) Procurement Intelligence Report Scope
- Electric Vehicles (EVs) Category Growth Rate : CAGR of 18% from 2023 to 2030
- Pricing Growth Outlook : 5% - 10% (Annually)
- Pricing Models : Cost plus pricing model, fixed price pricing model
- Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
- Supplier Selection Criteria : Type of EV, driving range, power & torque, charging specifications, energy consumption, type of battery and capacity, and other factors
- Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
