Electric vehicle manufacturing revolution could slash future vehicle costs

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Breakthrough electric vehicle production technology developed by Tesla could become widespread across the car sector, sparking significant reductions in the cost of EVs.

Tesla already uses gigacasting for the Model Y

Tesla’s Global Automotive Modular Evolution (GAME) manufacturing approach, also known as the unboxing process, builds its cars using giant castings and from these then assembles the vehicle in modules.

Such a process has fewer production steps and lower costs than the traditional monocoque process – and could help make future EVs more affordable, according to Owen Edwards, head of downstream automotive at Grant Thornton UK LLP in a column for Cox Automotive’s Insight Quarterly.

Edwards said: “The traditional ‘monocoque’ car manufacturing process debuted by Citroën in the 1930s is not ideal for modern EVs and is expensive compared to the GAME process pioneered by Tesla for its model Y. This ‘unboxing process’ enables vehicles to be constructed in modules, consisting of a front, rear, battery and floor section, with sides and roof added as the final piece of the jigsaw.”

Edwards explained that the use of so-called gigacasting/megacasting at the front and rear of the vehicle allows Tesla to not only manufacture a number of independent modules, which can then be brought to one central assembly plant, but it also removes over 100 stamping and welding steps in the production process, which contributes to a reduction in weight and cost.

It’s already led to cheaper, more streamlined production for the Model Y and could prove pivotal if the brand pushes ahead with plans for its Model 2 low-cost electric SUV, expected to cost around $25,000 (c.£19,472).

Other carmakers are also expected to increasingly follow suit. As per this recent column from Fleet World’s editor-at-large, Tesla’s gigacasting process is already being investigated by OEMs from Volvo, Volkswagen Group, Toyota, Hyundai and Ford, while Chinese brand Nio is already using it.

Cox Automotive’s Insight Director Philip Nothard said: “Tesla’s GAME process appears to be an ingenious way to slash the cost of manufacturing and will no doubt pique the interest of other EV OEMs. Given that private consumer demand growth for EVs is slow, any initiative or innovation contributing to them becoming more affordable for the end user should finally see them achieve price parity with ICE.”

The full article from Owen Edwards in Cox Automotive’s Insight Quarterly title is online here.

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.