Electric Vehicle Production Costs and Financial Impacts
Chapter from the book:
Göl,
M.
(ed.)
2025.
Accounting Science Research in a Changing and Transforming Business World.
Synopsis
Factors such as global warming, energy supply security, and environmental sustainability have made a profound transformation in the transportation sector inevitable. This global shift has positioned electric vehicles (EVs) at the center of automotive production. Sustainability targets, carbon-emission regulations, fluctuations in oil prices, and concerns regarding energy supply security further reinforce this position. However, despite the growing demand for electric vehicles, various financial and structural challenges persist throughout the adoption and production processes. EV manufacturing costs are shaped by the high share of battery systems in total costs, supply-chain organization, economies of scale, software-based vehicle architectures, and capital-intensive manufacturing processes. Therefore, examining EV production costs is critically important in terms of economic accessibility, financial sustainability, investment strategies, and competitive advantage. This study aims to analyze the cost structure of electric vehicle production and to evaluate the financial effects of these cost components.
