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Why speed to market is a decisive competitive factor
With so much transformation happening in the industry, speed to market is crucial. OEMs must accelerate the journey from initial sketch to production to stay competitive against new entrants. Rising competition and differing regional maturity is disrupting traditional development cycles, so manufacturers must be ready to adapt their processes.
This isn’ t just about manufacturing a vehicle and the time it takes to get it out the door. It’ s about the entire journey from design sketch, through engineering, production and finally distribution. With the arrival of new brands and models attracting consumers through advanced technology and competitive pricing, OEMs must expedite time-to-market to retain customer loyalty.
How automotive manufacturers are adapting
As material and labor inflation continue to squeeze margins and erode profitability, cost reduction is a top priority across. While EV transitions reshape cost dynamics by reducing propulsion components, savings are often offset by the higher cost of electrical components and systems, as well as battery technology.
We’ re seeing manufacturers are already moving on major cost-reduction initiatives that span the entire product lifecycle – from initial concept development, supply chain optimization and factory floor process improvements. For example, EV manufacturer Rivian faced the challenge of reducing the cost and resource intensity during early vehicle development. By adopting digital prototyping, it has been able to test and refine concepts virtually. This has made the digitalized design process more efficient, more cost-effective, and reduced the environmental footprint associated with building physical prototypes. The company eliminated more than 32 tons of clay waste and achieved savings of over $ 1m across the project lifecycle.
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