Less Expensive Cars 7-31-25

In 2025, electronics are estimated to account for roughly 40% of the total cost of a new car. This includes various components like chips, sensors, and software that power advanced driver-assistance systems (ADAS), infotainment, and other onboard technologies. Several factors contribute to this high percentage: 

Increased Complexity: Modern vehicles incorporate numerous electronic systems, from engine management and safety features to entertainment and connectivity options. 

Advanced Technology: The demand for features like autonomous driving, enhanced connectivity, and sophisticated infotainment systems drives the need for more powerful and complex electronic components, according to industry analysts. 

Software Integration: A significant portion of a car's functionality is now software-driven, requiring sophisticated software and powerful microcontrollers, says a market research firm. 

Electrification: The shift towards electric vehicles (EVs) further increases the reliance on electronics, with components like batteries, electric motors, and sophisticated power management systems all playing a crucial role, according to automotive experts. 

what is the electronics share of the cost of a new car 2025

The electronics share of the cost of a new car in 2025

The electronics share of the total cost of a new car has been steadily increasing and is expected to continue this trend. By 2025, it's estimated that electronics account for around 40% of the cost of a new car. This is a significant rise from previous years and a continuation of a trend where electronics play a larger and larger role in the automotive industry. The proportion is predicted to increase further, potentially reaching 50% of the total cost by 2030. 

Here's a look at the trajectory of this trend:

·       1970: 5%

·       1980: 10%

·       1990: 15%

·       2000: 22%

·       2010: 35%

·       2025: Estimated around 40%

·       2030: Projected 50% 

Factors driving this increase

Several factors contribute to the increasing cost of automotive electronics:

·       Growing complexity and sophistication of in-car systems: Modern cars include advanced features such as:

o   Sophisticated infotainment systems

o   Advanced Driver-Assistance Systems (ADAS)

o   Connectivity features

o   Safety features (e.g., airbags, anti-lock braking systems)

o   Engine management systems

·       Transition to electric and autonomous vehicles: Electric vehicles (EVs) and autonomous vehicles rely heavily on advanced electronic components and software for their operation and functionality.

·       Increased demand for semiconductors: The growing adoption of electronic systems in cars drives a higher demand for semiconductors and other electronic components.

·       Technological advancements: The continuous development of new and improved technologies contributes to rising costs.

·       Supply chain disruptions and material costs: Geopolitical factors and supply chain issues can affect the availability and cost of key electronic components like semiconductors. 

This increasing reliance on electronics is transforming cars into sophisticated, software-driven platforms, driving both the cost of electronics and the overall cost of new vehicles upwards. 

https://www.google.com/search?q=what+is+the+electronics+share+of+the+cost+of+a+new+car+2025

Comments

Nothing Exceeds like Excess.

Ford and GM need to design new cars with lower prices. The US is dependent on cars to get to work and shop for groceries. Half the US population cannot afford new cars. Removing unnecessary electronic devices will be needed to produce a new car that can sell for under $20,000.

Weight needs to be reduced and aerodynamic design employed to increase MPG. Hybrids are best.

Norb Leahy, Dunwoody Ga Tea Party Leader