Experts Tells What Percentage of Expenses on the Car Production Are the Share of Electronics

Modern vehicles are literally stuffed with various devices and driver-assistance systems.

Every year, the number of smart electronics in cars only increases, replacing various mechanical components. This certainly affects the cost of cars. Deloitte has looked at the share of electronics in the price of cars.

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The company has studied the automotive industry over the past 20 years and has compiled a detailed report. In 2004, only 25% of cars were equipped with airbags, and less than 50% — power seats. In the same year, less than 20% of vehicles could boast options such as tire-pressure monitoring and blind spot detection systems, parking sensors, side airbags, and electronic stability control. However, more than 80% of cars were equipped with such systems by 2017.

During the reporting period, most vehicles were equipped with adaptive cruise controls, multimedia systems, electronic sensors and systems that provide not only a comfortable ride but also maximum safety for both drivers and passengers. This ‘advancement’ of modern cars has led to a significant increase in their price.

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According to Deloitte’s analysts, in 2000, the share of electronics in the total cost of the car was 18%. This year, it has grown to 40%. If the development of the automotive industry continues at the same pace, then the share can grow up to 45-50% by 2030. If we take into account the fact that autonomous vehicles will soon enter urban roads, the share of electronics will increase even more. This is due to the fact that such vehicles are equipped with a large number of LiDARS, radars and cameras, as well as other onboard systems, the cost of which is high.

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