Why Are Cars Cheaper Now?

[VanCamille]

Cost reduction is a significant factor affecting vehicle prices. Here are the specific factors influencing car prices: 1. Production Costs: Primarily include labor costs and machinery costs. Before mechanization became widespread, car manufacturing was a relatively difficult task, relying on limited machinery for certain component constructions, far less advanced than today's mechanized factories. It also required a large workforce for assembling various parts of the car, leading to very high labor costs. Now, replacing the labor-intensive manufacturing model of the past, there has been a breakthrough improvement in both precision and efficiency. 2. Material Costs: The level of material costs is closely related to R&D technology. The selection, forging, and manufacturing methods of materials greatly affect material wastage.