The garage industry shows its innovative strength: put an end to internal combustion engine nostalgia

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“The car is and will continue to be of great importance,” said Federal Councilor Albert Rösti (56) at the start of the Swiss Garage Day of the Swiss Automobile Trade Association (AGVS) in Bern. He underlined the importance of cars as drivers of prosperity in front of more than 900 attendees (a new record) at the largest expert conference in the Swiss automotive industry. One in eight jobs in this country is directly or indirectly dependent on the car.

However, changing conditions inside and outside the automotive industry are challenging the industry. “Change is progress, and progress comes through innovation,” says AGVS Center President Thomas Hurter (60): “Innovation is therefore the key to success.” Helena Wisbert (41), Director of Automotive Research at the renowned CAR Center in Duisburg (D), follows this. According to them, electric cars are one of the most important drivers of innovation. And worldwide they come primarily from China.

China is on the rise

The e-market is dominated by Chinese manufacturer BYD and pioneer Tesla. «Tesla can do this with just two models, Model Y and 3; “They are both world cars where economies of scale help reduce costs,” says Wisbert. BYD’s advantage: It comes from the company’s battery production because “at about 40 percent of the price, the battery is still the most expensive part of an electric car.” “It will be important to differentiate yourself through batteries in the future.”

He also believes that different types of batteries will soon be available to reduce costs. “On the one hand, we are moving towards very long ranges and super-fast charging for the premium segment, and on the other hand, we are moving towards low prices and the same range.” Regarding the still widespread reluctance towards Chinese cars in Switzerland (only 21 percent would buy electric cars from China), the CAR director says: “This acceptance will increase and so will the awareness of Chinese brands.”

E-car costs are falling

The main reason for this is that electric cars from China are cheaper. However: “Combustion engines will remain cheaper to produce until 2030. Even if manufacturers try to reduce costs through collaborations.” To be accepted by customers, electric cars in Europe will still need to be the same price as internal combustion engines by 2027; This means enormous pressure on margins for manufacturers, importers and ultimately garage owners.

The Chinese may not have fully established themselves in Europe, but they have come to stay. This also affects sales channels such as online, pop-up stores or traditional car dealers. “A lot of things are being tried here. And I have burned a lot of money. But physical car sales will continue to be very important in the future,” says Helena Wisbert. The deep expert on the global automobile industry once again encourages Swiss garage owners. At the same time, all trends indicate that the mobility of the future is about innovation It also warns not to succumb to internal combustion engine nostalgia as we move towards e-mobility, which is its driving force.

Source: Blick