Are BEVs really easier to build but more expensive?

Looking at how Chinese companies keep releasing new BEVs, it seems like building BEVs could be faster than making gas cars. But the issue might be that profits are lower, and not all buyers want to pay the higher price.

Could the delays just be companies waiting to see how things like giga-casting, cheaper battery types like LFP, or new regulations will play out?

The only downsides I can see are the 8-year battery warranties that manufacturers have to deal with and dealers wanting to charge a lot for things like unnecessary services or BEV-specific maintenance.

Fingers crossed that by 2026 we’ll see more affordable BEVs in North America with better features.

I really think BEVs will be the best option for people who can charge at home.

There are fewer parts in EVs compared to gas cars, but the main part—batteries—are expensive to make and research. Once battery costs drop, we’ll see prices get closer to gas cars.

Michael said:
There are fewer parts in EVs compared to gas cars, but the main part—batteries—are expensive to make and research. Once battery costs drop, we’ll see prices get closer to gas cars.

True, and on top of that, you’ve got fewer moving parts, less wear and tear with regen braking, and generally fewer issues outside of the battery itself.

I’m new to EVs, but it really does look simpler overall. No belts or complex systems tying parts together. No engine fluids or emissions systems to deal with.

But yeah, the components like the battery seem to drive the costs up, even if the labor might be cheaper.

@Randy
“Certainly probable” and “Seems like”… That’s some real hard analysis there.

Peggy said:
@Randy
“Certainly probable” and “Seems like”… That’s some real hard analysis there.

Look, I’m just another guy on the internet, not some EV expert. My post was just a quick thought, not a deep dive.

@Randy
Hey, as another ‘internet dipshit,’ I thought your comment was fine. People expecting deep analysis on a forum are in the wrong place.

emma said:
@Randy
Hey, as another ‘internet dipshit,’ I thought your comment was fine. People expecting deep analysis on a forum are in the wrong place.

Welcome to the Union of Shitposters!

Peggy said:
@Randy
“Certainly probable” and “Seems like”… That’s some real hard analysis there.

Honestly, your comment was as good as most of the EV articles we see posted on here.

At large scale, EV profit margins can be higher. Manufacturers have every reason to ramp up production once they can lower costs.

Mark said:
At large scale, EV profit margins can be higher. Manufacturers have every reason to ramp up production once they can lower costs.

Interesting. Are BEVs’ contribution margins higher? Or is it just the high upfront costs being spread out with scale?

@martin
Yep, once they scale up, the costs to make them go down, especially with fewer moving parts. The real challenge will come as new companies start driving down prices even more.

Mark said:
@martin
Yep, once they scale up, the costs to make them go down, especially with fewer moving parts. The real challenge will come as new companies start driving down prices even more.

So the material and labor costs are already lower for BEVs?

@martin
Only at scale. Some carmakers have reached that point, while others are still working on it.

Yes, there are way fewer parts and systems to deal with in BEVs. In China, the competition is fierce because the market is wide open, so companies can try new things quickly. But in the US, the big manufacturers play it safer because the stakes are higher for them. They don’t want to make another flop like the Aztek.

Government subsidies in China also help a lot. If the US wants to compete, we’ll need to encourage more innovation here, maybe even through subsidies for startups.

Battery tech and high-power components are expensive. Have you ever bought a high-quality inverter? It’s similar tech, and the costs for batteries and power management systems handling 350-800 volts are no joke.

Some manufacturers, like Volvo or Mazda, modify existing gas car designs for their EVs, which means they’re still using old systems like hydraulic brakes. And those systems need to work with the regen braking tech, which adds to the complexity.

Plus, you need good cooling for the battery and motor. The whole thing is not as simple as it looks, even if there are fewer moving parts.

Just looking at how Chinese manufacturers keep coming up with new and maybe better BEVs,

That’s because the Chinese government has been giving their EV makers big subsidies for years now. They’re ahead, but traditional carmakers should catch up soon.

@Jason
Any source about China from Western media is usually nonsense. Don’t believe everything you read.

sorphia said:
@Jason
Any source about China from Western media is usually nonsense. Don’t believe everything you read.

That’s what the Chinese government wants people to believe.

Yes, they are easier to build. An EV just needs a battery, motor, and some wires, while gas cars have way more complex parts like engines, transmissions, and fuel systems. EVs also don’t need as much precision in their assembly.

But making an efficient motor and battery requires a lot of expensive materials and manufacturing to tight specs.

The delays aren’t really because companies are unsure, though. It’s just a different way of building cars. Gas cars are mechanical at their core, and software is added later for things like dashboards and infotainment. EVs, on the other hand, are fully digital. Even plugging in to charge requires software checks and communication between the car and charger.