Gone are the billion-dollar investments that have made legacy auto-making into such a cash cow. Suppliers offer ready-made generic electric platforms and manufacturers can take on contracts for assembly — approaches that translate into savings on jobs and infrastructure.
What has been missing in the new EV formula, according to a
“Electric vehicles are looked at as being boring by the general public,” AEHRA CEO
Nada has hired a former Lamborghini designer to help infuse his vehicles with Italian emotion and is emphasizing aerodynamics over performance.
But the company wants to enter an increasingly crowded market of EV startups and traditional carmakers that are being pushed to tackle car emissions that contribute to climate change. Some startups have had little success.
AEHRA doesn't plan to launch its first vehicles — an SUV and a sedan — until mid-2025, with annual production starting at 20,000 to 25,000 vehicles. The ultra-premium cars also plan to come with a price tag to match —
They are expected to roll out first in
“We are not spending much,’’ Nada said. “This is due to the fact that we’re evolving the materials in such a way that the chain of production is very asset-light compared to the existing production ways.”
Nada earned most of the startup money trading crude oil in
While AEHRA's cars are for a wealthy demographic as inflation bites the middle class and low-income earners, battery-powered vehicles generally have gained broader consumer acceptance and governments are nudging automakers away from internal combustion engines.
The
Battery electric vehicles recorded the strongest growth of all fuel types in the third quarter, up 22% to over 259,000 units, according to the
The U.S. market share is slimmer, at around 6%, but Bernstein expects that to accelerate significantly with
As interest grows, dozens of new startups are entering a crowded market alongside pioneer
At the same time, Chinese manufacturers are making inroads in
“It’s going to be much more difficult now than it was a decade ago for
Another risk is service and support, especially when launching across big geographies without built-in sales and service networks, Abuelsamid said.
AEHRA’s plans call for mostly online sales and regional service centers, Nada said.
Design is where AEHRA hopes to grab market attention — moving away from the architecture of an internal combustion engine that Nada said has been conditioned by thermal management.
The AEHRA vehicle body is moving away from edges that have defined the muscularity of supercars in recent years and is returning to a gentler line reminiscent of pre-war car design.
This aesthetic shift improves the car’s aerodynamics, which will help extend range, according to AEHRA chief design officer
Nada is convinced that young consumers are not so attached to their previous generations’ nameplates and will be willing to buy a car from a new player that offers an emotional change.
“We’re not in the market of Ferrari, we’re not in the market of Lambo,’’ he said. “Our vehicles are not the same segment of
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