Elektrifiering och lönsamhet i bilbranschen

Abstract

The most prominent trend in the automotive industry right now is electrification. Consumers and global regulations force companies to offer more environmentally friendly alternatives to the fossil car. But sustainable development is not only about offering environmentally friendly alternatives. It must also be economically feasible. Even if demand is increasing significantly, a problem remains in that the costs of producing electric cars are high and that access to important materials is not secured. This study investigates which factors affect profitability, when companies switch from producing fossil cars to producing electric cars. In addition, an attempt of conclusion between profitability and the proportion of electric cars a company is conducted. Profitability measures used in the comparison are profit margin and return on total capital. The survey is limited to examining the premium segment. The study uses annual reports, industry publications, interviews and datasets to discuss the profitability of electrification. Determining whether the share of electric cars has a greater impact on profitability is difficult. Some companies with 100% share of electric cars show low profitability, while others have the best of the studied companies. However, this may be due to the fact that the latter have been around longer and have managed to reach volumes that able the mean production costs to be lower, as well as has achieved greater demand. Statements from companies also show that different companies have reached different margins on electric cars, but many would point out that margins will be at least as good as for fossil cars in the near future. Companies that have a lower share of electric cars but are growing in this regard, have not seen their profitability change to any great extent. On the one hand, it is possible to see a big challenge with the manufacture of electric cars. Costs to produce electric cars are higher than for fossil cars, which depends both on inputs and the production process. On the other hand, trends show that costs are decreasing, while customers are willing to pay more for electric cars. In addition, state and global regulations have favored the progress of the electric car.The trend is towards increasing the production of electric cars, which will make profitability more a question of the competitive situation, rather than whether you produce electric cars or fossil cars.