In 2030, China's Electric Vehicle Market Penetration Rate Will Reach 33%, So How Can Car Companies Keep Profitable In This Generation Of Electrification?

The electrification of auto industry is approaching.

Benefiting from the subsidy policy and implementation of carbon emission regulations, the sales of electric vehicle in European market has reached 920,000, with 115% year-on-year growth. Meanwhile, the sales of new energy vehicle is recovering increasingly in Chinese market, which has reached 160,000 in October, the year-to-year growth up to 104.5%. This is our forth time to set new monthly sales record this year.

Then a new problem comes into our mind: how a car company keep profitable? We have learned that the cost of each electric car is about 35,00 to 10,000 euros higher than internal combustion engine vehicle. There is still a challenge for the car manufactures to control profitability and marginal revenue, although they have cut the additional cost. The car companies has to face the topic that how they can ensure that transformation inputs are balanced with sustainable profitability.