While EVs as a share of global auto sales are expected to increase to by 2024, smaller automakers will have to compete with the same pool of traditional rivals as well as newer EV challengers, like Tesla, for a slice of a relatively small pie. The level of competition and small market size will likely lead smaller automakers to initially struggle to see quick returns on their EV investments.
Larger automakers making early strides in EV development, like BMW, can take advantage of this need by leveraging their advanced position to build out partnerships and more quickly recoup their investment in EVs. EV manufacturing requires ground-up vehicle redesigns, new supply chains, and retooled production facilities, lending itself to larger automakers that have the manpower and resources to make changes without major interruptions to their legacy products.
Larger automakers can leverage this advantage by forming early agreements and relationships with smaller automakers, sharing in EV development costs and even licensing their existing EV tech to partners. For instance, Volkswagen
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