Ricardo Strategic Consulting (RSC) advises existing and emerging commercial vehicle OEMs on supply chain options, competitive benchmark prices, and opportunities to minimize non-recurring engineering (NRE) expenses associated with hydrogen fuel cell and battery electric vehicles.
Many heavy-duty and medium-duty truck manufacturers are developing strategies for bringing zero emission trucks to the market. Companies often struggle with the financial burden of investments required in electrification programs and developing products at competitive costs. Overcoming this challenge requires a cost-smart design strategy and a deep understanding of market trends for xEV components, which do not feature in the traditional parts bin of established OEMs and may be outside their areas of expertise.
Having significant experience in cost benchmarking, technology roadmapping, design cost improvement, and supply chain strategy for xEV components, RSC enables client to understand competitive benchmarking prices in the market.
RSC uses the following approach to understand competitive prices in the market:
Collaborate with client to establish key attributes of electric truck systems and customize cost analysis for the client’s needs
Maximize cost analysis accuracy by validating estimates from Ricardo proprietary databases, supplier outreach, subject matter expert inputs, public domain information, and industry subscription services
Prioritize and highlight areas of target cost reduction by determining key cost drivers of each subsystem
- Identify significant market trends, technology roadmap and cost reduction potential in 2025 and 2030 for each sub-system to inform the client of potential risks and opportunities
RSC delivers value to its clients by providing a dataset of xEV component costs specifically relevant to their planned product and validated with the latest insights from the global supply chain, and a detailed understanding of NRE expenses specific to the intended design features of the vehicles. RSC can also provide a detailed view of technology and cost roadmaps which all enable recommendations to our clients on the following:
Competitive cost basis for supplier selection and negotiations during procurement of battery-electric and hydrogen truck systems
Key components for cost reduction efforts and their relative impact on the truck cost
- NRE cost avoidance through current off-the-shelf components leveraging existing supply base
Client gains a detailed understanding of development costs associated with their product strategy and pathways to mitigate initial investment
Client obtains access to a detailed dataset of xEV component costs and competitive targets that provides guidance to their cost reduction efforts, supplier selection and negotiation process
Client benefits from insights on financial risks and opportunities for their planned products based on current and future trends in technology and its costs