China dominates the world electric vehicle market and, according to the CEO of Rivian (RIVN), RJ Scarge, this did not occur by accident. After eliminating the world car manufacturers from their original market, manufacturers of Chinese electric vehicles develop quickly abroad. Scarenge explained why China runs a quarter of work and what the United States can do to keep pace.
The CEO of Rivian explains why China leads with electric vehicles
During a recent fireplace conversation with Rishi Dhall, vice-president of NVIDIA car activities, Scargenge stressed that only 8% of new vehicle sales in the United States last year were electric.
In comparison, electric vehicles represented 45% of all car sales in China last year. It is a massive difference. China has almost six times ahead of the United States in terms of adoption of electric vehicles.
When asked for the Chinese innovation that takes place at “Lightning Speed” with new models, advanced battery technology and much lower prices, the CEO of Rivian explained how companies in the United States can learn.
One of the main reasons is the lack of options in the United States. SCARINGE says that there is only “one of the high convincing choices raised” of less than $ 50,000. One of them is Tesla, with model Y and model 3. This is obvious from Tesla’s “extreme” market share in recent years.
Although Tesla vehicles are excellent, there are still hundreds of other choices for gas cars, with different prices, brands, features, etc.
SCARINGE says that the United States must offer many more electric vehicles to follow China. Rivian is currently selling the SUV and R1T R1S electric pick-up, but they are flagship products that cost more than $ 70,000 each and have a relatively small market.
What role will Rivian play?
The next product of Rivian, R2, “opens it spectacularly”. The medium -sized R2 SUV will start at around $ 45,000, almost half of the R1 and R1T.
SCARINGE explained that R2 takes “the magic of what is a rivian at this higher price and puts it in a slightly smaller package”.
Although the CEO of Rivian promises that it is the “coolest vehicle”, the United States will need more than that to be the pace. We need R2 to succeed, and we need another “10, 15, 20 other options” for the penetration of electric vehicles to grow in the United States.
After the cost difference in the workforce is fading, Scargenge explained that what we have left is how vehicles compare in terms of functionalities, content and other technological advantages.
In the United States, two companies, Rivian and Tesla, “redefined the architecture of the network” with technological batteries integrated vertically. In China, many do it from scratch.
Given that many car manufacturers in the western source sensors of several suppliers of several suppliers, it is almost impossible to make them work in synchronization, not to mention update.
To be competitive, “you must have the right plumbing,” said Scargenge, referring to the vertical integration of technology. Rivian already has a great world OEM, Volkswagen, planning to use its software in its new generation electric vehicles. Rivian and VW launched a joint venture worth 5.8 billion dollars in November.
Meanwhile, Rivian widens his normal factory and he is preparing to launch R2. The intermediate size platform is always on the right track to be launched in 2026.
Once the upgrades are completed, Rivian will be able to produce around 215,000 vehicles per year, against around 150,000. Once its new EV factory in Georgia is operational, which is planned in 2028, Rivian plans to add 400,000 additional units to its annual production capacity.
R2 is only the beginning of Rivian, with the R3 and the R3X tri-word-word launched shortly after. Rivian will sell R2 abroad in places like Europe while it develops the brand worldwide.
Source: nvidia
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