Electric Vehicles (EVs) Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

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.

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, Electric Vehicle Mechanical Engineer at BMW and Tesla receive a 10% - 15% higher base salary compared to the salary received by Electric Vehicle Mechanical Engineer working in companies such as Ford Motor Company and General Motors. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the Electric Vehicles category over the last two years:

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.