Abstract:

Battery electric vehicles (BEV) profitability will continue to face headwinds from high e-drive and battery costs, as well as the need for high investments at a time when sales volumes remain challenged. The BEV market is expected to expand in regions where policymakers are attempting to promote EV sales growth through various policies and regulations. Some EV OEMs have already begun investigating changes to their go-to-market models that may increase sales and reduce costs quickly. The recent research shows that three improvement levers can significantly reduce total cost for battery electric vehicles, viz., R&D excellence, flexible manufacturing, and value-chain integration.