Because new cars could cost more
In recent years, the increase in the price of new vehicles has been attributed mainly to the cost of batteries and supply chain difficulties. However, a new factor threatens to drive prices even higher: the RAM crisis and the widespread increase in the cost of consumer electronics.
It is necessary to clarify how a problem that seemingly only affects computers and mobile phones can have repercussions for dealerships. The key to success lies in the transformation of the internal architecture of modern vehicles, especially in the latest generation of hybrid and electric models.
The technological metamorphosis of modern cars.
For decades, the development of automotive electronics was characterized by the use of isolated control modules with low computational complexity. However, the transition to electric mobility has generated a radical change in this sector. Today, a vehicle represents much more than a simple means of transportation; it has become a data processing center on wheels.
The prominence of large multimedia screens on the dashboard, which centralize everything from climate control to charging management, demands powerful processors and memory, similar to those found in high-end computers. Simultaneously, the implementation of advanced driver assistance systems, required by international safety regulations, demands unprecedented real-time processing capacity.
Sensors, radars, and cameras process vast amounts of information per second to provide features such as autonomous emergency braking and active lane keeping assist. The entire infrastructure depends on one essential component: RAM.
The impact of the semiconductor and RAM crisis.
The consumer electronics industry has experienced continuous strain due to rising production costs for RAM and other critical components. Semiconductor manufacturers have dedicated a significant portion of their production capacity to meet the growing demand from emerging sectors and data centers. This strategy has resulted in reduced availability and increased unit prices.
Until recently, the automotive industry used older-generation components, characterized by their low cost and long lifespan. However, the current requirements of electric vehicles have driven the adoption of more advanced and recent architectures. Competing for the same resources as the telecommunications and IT industries, automakers are exposed to price fluctuations in this market. This increase in the cost of advanced electronic components has a direct impact on the total cost of manufacturing the vehicle.
From the assembly line to the final retail price.
Profit margins in vehicle production, especially in entry-level segments and electrified models that already bear the added cost of batteries, are extremely tight. When infotainment modules and ADAS control units see price increases, manufacturers face a dilemma: absorb the loss of margin or pass the difference on to the final price paid by the consumer.
Given that the inclusion of ADAS systems is mandated by legal and safety homologation requirements, brands are obligated to incorporate them into their products to guarantee user safety. Furthermore, foregoing digital displays would be unfeasible in a market where connectivity is a key purchasing factor.
The pressure on the electronic component supply chain anticipates an upward trend in the prices of registered vehicles in the short and medium term. The convergence between the technology and automotive sectors means that the price of chips will no longer only determine the cost of a tablet or a computer, but also the value of that new car model that will go on sale at the dealership.
