Spending $75 million on R&D within the first half of 2021, the place does Vingroup stand in comparison with the worldwide electrical automobile giants?
Vingroup Company (VIC) spent about 1,732 billion VND (almost 76 million USD) on analysis and growth actions within the first 6 months of the 12 months, this determine is 6.5 occasions greater than the identical interval final 12 months.
The rise in R&D prices may be understood largely from the VinFast challenge, when the Vietnamese automobile producer is selling the launch of electrical/hybrid automobile fashions with the purpose of promoting globally from 2022. The plan of billionaire Pham Nhat Vuong is to show VinFast automobiles into direct competitors with gasoline automobiles, together with the development of growing electrical autos globally to restrict emissions.
Within the first half of the 12 months, Vingroup recorded a income of VND 9,334 billion from industrial manufacturing, which primarily got here from the VinFast challenge. R&D expense as a share of gross sales is roughly 21%.
R&D prices are one of many necessary metrics for world automakers, particularly within the area of electrical autos. It partly displays the technological race in the direction of smarter, extra environmentally pleasant autos and is the must-have development of the long run.
Tesla, the world’s main electrical automobile producer, leads the best way in R&D spending. Final 12 months, billionaire Elon Musk’s firm spent almost $1.5 billion on this exercise. Analysis and growth prices for Tesla autos are at a excessive for the fourth 12 months in a row and are anticipated to rise much more this 12 months. Within the first half of the 12 months, Tesla continued to spend $ 1.24 billion on R&D.
Tesla outperforms different electrical automobile builders, with Lucid Motor final 12 months spending $511 million on R&D, coming in at second. NIO spent 381 million USD; Xpeng $ 265 million and Li Auto $ 169 million.
Particularly, digital automobile producers NIO, Xpeng and Li Auto are all Chinese language enterprises with a younger age of lower than 5 years. They don’t seem to be afraid to spend a whole lot of tens of millions of {dollars} in recent times to create automobiles which might be good in each {hardware} and software program. At the moment, all three companies are listed on the US inventory market.
On the size, billionaire Elon Musk’s firm is way bigger in scale than Chinese language producers. Tesla’s market capitalization is at the moment at $ 737 billion, whereas NIO $ 64 billion, Xpeng $ 36 billion and Li Auto $ 32 billion. The US firm itself additionally has an extended growth time and has began to advertise funding in analysis and growth 10 years in the past.
The information reveals that, within the early years, the ratio of R&D bills to gross sales of Chinese language corporations is excessive, from 80 to 100%. That is comprehensible when income was nonetheless low at the moment and funding in analysis and growth was sturdy.
In 2020, this ratio turns into extra balanced. At Tesla, R&D Price/Income 4.7%, NIO 15.3%, Xpeng 29.5% and Li Auto 11.6%. Vietnam’s Vingroup (automotive section alone) is 21% as talked about.
Based on one other indicator, R&D prices over complete working prices of the world’s main electrical automobile builders vary from 30 to 50%. Extra particularly, at Tesla this charge is 32.2%, NIO 38.4%, Xpeng 37.1% and Li Auto 49.6%.
Nevertheless, on a big scale within the automotive trade, the R&D prices of the electrical automobile section are nonetheless removed from that of the world’s main auto teams.
Main the best way in R&D spending is Volkswagen, with $16.5 billion in 2020, or about 7.6% of gross sales. Daimler spent 10.21 billion USD, 5.6% of income; Toyota spent $9.87 billion, 3.8% of income; Ford spends $7.1 billion, 5.58% of gross sales.
The world’s main automakers at the moment are specializing in one challenge: growing clear expertise for automobiles, making autos smarter and safer. Extra particularly, analysis in the direction of electrical automobile expertise, automation in automobiles, software of synthetic intelligence to person expertise, investments in battery expertise are additionally promoted.
