Introduction
As the autonomous truck industry continues to grow and develop, understanding the Total Cost of Ownership (TCO) is crucial for operators and manufacturers alike. Two of the most important factors influencing TCO are differences in procurement costs, maintenance, and operational expenses in the United States and China. In this article, we will explore these key differences and driving factors through a comprehensive TCO analysis.
Global analysis of total cost of ownership for autonomous trucks: Key differences and driving factors in the US and China. By Shihao Fu, technology analyst at IDTechEx
Key differences in operational costs between China and the US
Through a detailed TCO analysis of different types of autonomous trucks in both China and the US, IDTechEx identified several critical factors driving cost differences, including purchase prices, maintenance expenses, fuel costs, and unique market conditions.
Purchase costs
For mid-to-high-end Level 0 (non-autonomous) trucks, the purchase cost in China is approximately $70,000, compared to $114,286 in the US, representing a 63 percent difference.
This disparity stems from significant differences in manufacturing costs, market scale, and labor expenses between the two countries. China’s robust manufacturing infrastructure and large-scale production capabilities enable lower truck production costs.
Advanced autonomous vehicles
For Level 2/Level 3 autonomous trucks, the reference purchase cost in China is $112,000, while in the US, it is $214,286 – about 91 percent higher.
The cost of developing and integrating autonomous systems is relatively higher in the US, coupled with stringent regulations that demand higher technical maturity and safety standards, driving up the cost of these advanced models.
Source: IDTechEx
Electric platform considerations
The upfront cost of electric trucks at Level 4 Autonomy, is largely determined by the required battery pack size.
Lithium-ion battery packs are priced between $160 and $200 per kWh, with a typical 150 kWh battery for a medium-duty truck costing over $25,000, while a heavy-duty truck with a 400 kWh battery could see costs exceeding $65,000.
In recent years, China’s booming electric vehicle market has significantly optimized battery material costs and supply chains.
Coupled with government subsidies and economies of scale, China’s advantage in electric vehicle production is difficult to challenge purely through market forces.
The Chinese government’s robust support for electric vehicles, including the construction of charging infrastructure and purchase subsidies, has substantially reduced the cost of acquiring electric trucks.
Fuel and energy cost comparison
Fuel costs are another crucial factor influencing TCO. For Level 0 trucks, fuel costs in China are calculated at $371,429, compared to $336,576 in the US. This difference primarily reflects the variation in fuel prices between the two countries.
The impact and adaptability of electric powertrains on TCO
Compared to traditional internal combustion engines, electric trucks will increasingly demonstrate cost advantages in long-term operations.
Conclusion
As the autonomous truck industry continues to grow, understanding the TCO in different regions is crucial. IDTechEx’s analysis provides valuable insights into the key differences and driving factors in the US and China, helping industry participants make more informed decisions. From purchase costs to maintenance and fuel expenses, a thorough understanding of TCO will be essential for success.
Frequently Asked Questions
What is the main difference between US and China’s procurement costs for autonomous trucks?
The main difference between the US and China’s procurement costs for autonomous trucks lies in the significant variation in manufacturing costs, market scale, and labor expenses. China’s robust manufacturing infrastructure and large-scale production capabilities enable lower truck production costs.
Why do advanced autonomous vehicles have higher costs in the US than in China?
Advanced autonomous vehicles have higher costs in the US compared to China due to higher development and integration costs and stringent regulations demanding higher technical maturity and safety standards, driving up the cost of these advanced models.
What is the effect of electric powertrains on TCO in China?
Electric powertrains have a positive effect on TCO in China, with reduced acquisition costs due to government support and economies of scale in production. Additionally, electricity costs are relatively stable and are expected to decrease in the future.
Can electric trucks reduce TCO in the long-term compared to traditional internal combustion engines?
Yes, electric trucks can demonstrate cost advantages in long-term operations compared to traditional internal combustion engines. Lower energy costs, reduced maintenance needs, and potential government incentives are expected to contribute to improved TCO over the vehicle’s lifespan.
What is the cost range for battery packs for autonomous electric trucks?
Battery packs for autonomous electric trucks can cost anywhere between $160 and $200 per kWh, depending on the size and specifications. A typical 150 kWh battery for a medium-duty truck can cost over $25,000, while a heavy-duty truck with a 400 kWh battery could see costs exceeding $65,000.
What is the implication of China’s advantage in electric vehicle production for industry participants?
China’s advantage in electric vehicle production is likely to influence the global market, driving down costs and improving profitability for industry participants who operate in the region or work with Chinese suppliers.
