The CEO of Ford foresees a drop in electric vehicle (EV) prices, anticipating fierce competition to offer EVs under $25,000. Presently, finding a gas car under that price is challenging, let alone an EV, which costs more.
The Why Behind the Price Drop
The cost reduction primarily hinges on the materials used in manufacturing, especially those pertaining to the battery and overall construction. EVs have fewer moving parts, making production less complex and costly.
Streamlined manufacturing and distribution
EV assembly lines differ significantly from traditional car manufacturing setups. With fewer components, simplified fixtures, and reduced workstations, costs are naturally minimized.
Changes in retail strategy
Dealerships might transition to smaller, more focused locations, shifting away from vast showrooms. Ordering custom vehicles could become the norm, altering the conventional dealership experience.
Rethinking Dealership Models
Franchise laws governing dealerships pose a challenge to this new model, requiring substantial revisions to accommodate smaller, more numerous dealerships.
Impact on Retailing and the Consumer Experience
The shift could revolutionize the retail experience for consumers, altering the way cars are sold and possibly reducing the emphasis on used car sales.
Future Outlook and Consumer Adaptation
This transformation in the automotive industry may mirror shifts seen in other retail sectors, potentially changing how consumers perceive and purchase vehicles.
Evolution in Retailing
The EV retailing landscape is on the brink of a significant transformation, potentially altering the consumer experience, dealership dynamics, and even the role of used cars in the market. What are your thoughts on these impending changes? Do you believe this evolution is necessary, and how might it impact the economy? Share your views on the future of electric vehicle retailing!