Why is it more profitable to produce electric cars than cars with ice?

1. Minimum engine options maximum power configurations
The biggest advantage of electric vehicle manufacturers is the easily variable power inherent in electric motors.

The manufacturer can produce only a few motors, but offer up to 30 different transmission options. In short, “horsepower”, which is not the correct definition for electric motors, can be adjusted, that is, one motor can have several power options.

In turn, the manufacturer of cars with ice, to offer similar variability and be able to compete, must spend money on the development and creation of a much larger number of engines, with each engine will need its own production and Assembly line, while the manufacturer of electric vehicles is satisfied with the simplicity of design and savings on Assembly due to the smaller size of the electric motor.

2. The simplicity of the drivetrain
Electric cars have a much simpler transmission compared to cars with ice:

the power unit can be placed closer to the wheel or wheels with traction;
they do not have a transmission;
electric vehicles do not need mufflers or other exhaust systems.
All this gives electric vehicle manufacturers the opportunity to reduce overall production costs.

3. There are no restrictions on emissions
Manufacturers of electric vehicles do not need to worry about adapting their product to certain government emission standards that are already in force or will be introduced in the future.

Thus, manufacturers of electric vehicles are free to design and manufacture vehicles of any shape, size or configuration they wish, in accordance with the interests and demand of the market.

4. Electric car manufacturer gets more profit
The last advantage that electric car manufacturers can get at the moment is a large revenue (and potential profit) from each sold electric car. Now electric cars can be set at a higher price than their counterparts with the engine, as buyers know that they will spend less on fuel, maintenance and repair.

Thus, manufacturers of electric vehicles can receive a large gross profit for each sold car, investing it in new developments that will further reduce the cost of production.

Based on the above reasons, it is obvious that now is the time to become or be a manufacturer of electric vehicles. Perhaps that’s why electric car startups like Rivian are emerging in the world, plus a huge number of Chinese brands that are joining Tesla to revolutionize the automotive industry.

Recall, we previously wrote an article whether electrification will save the automotive industry.