Shorter development cycles and increased demand for new vehicle models in the electric vehicle era

As the market demand for EVs surges in the EV era, carmakers have been forced to shorten the pace of new vehicle launches to two to three years due to competition, and even to one and a half to two years in the future. Looking at the current market, it is difficult for the traditional Tier 1-driven model to keep up with this change. This change in trend has undoubtedly impacted the existing production model. Traditional car manufacturers such as Mercedes, BMW, VW, etc. are forced to cooperate directly with suppliers in an attempt to shorten the time-to-market in order to meet market demand. In addition to the shortened time-to-market, EV styles will also see breakthrough growth. As mentioned above, there will be 450 models of EVs in 2022, and the demand is expected to reach 1,450 models in 2027, which is a huge number of models that will test the whole vehicle design capability of vehicle manufacturers. In addition, unlike traditional car makers, new car makers tend to introduce new technologies when designing EVs, which can catch consumers' attention in terms of product recognition, and the lack of EV R&D talents in traditional car makers is also one of the pain points.