The prices of the raw materials used in the production lines of the cars lately are constantly increasing, raising the total cost of a new car. At the same time, driver assistance systems and safety hunting in order for models to secure the coveted EuroNCAP stars is another reason for the increase, while we should not overlook the increase in transport costs, which has risen sharply during the pandemic.
A car’s plastics, steel, crystals, cast iron, various aluminum alloys, copper and synthetic special insulators have risen sharply this year, dragging down car prices as the carmakers pass on the increases to final product. According to analysts, copper as a stock market product is expected to continue to rise in the coming years, mainly affecting the production of electric and hybrid cars. The same goes for lead used in battery construction, and the same goes for pure aluminum, which is widely used in the automotive industry. The increase in the price of energy, which is necessary for the production and processing of metals, is another factor that increases the cost of the final product.
A very big problem remains the skyrocketing cost of transport. Compared to previous years, the cost has more than doubled, and we should not miss the increase in the delivery time of raw materials, which increases their price.
Safety systems and technological equipment can make cars smarter and safer, but they are raising the price. Renault strongman Luca de Meo a few days ago not only pointed out the increases that have already taken place, but predicted that they will continue in the future, as they increase the price of raw materials, the cost of gas, energy but also transport.
On the other hand, the great shortage of semiconductors has reduced the production of cars. As a result, companies do not make offers, as they can not meet demand.
Part of the solution is the circular economy. The most efficient recycling of raw materials and especially those used for the production of batteries is a key issue that will help keep costs as stable as possible. At the same time, the increase of Renewable Energy Sources worldwide will give a partial solution to the issue, while the normalization of production lines with the immediate availability of semiconductors will restore the part of car production to a normality.
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