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Given the significant increase in raw material prices, how should we reassess the electric drive suppliers?

Given the significant increase in raw material prices, how should we reassess the electric drive suppliers?

August 20, 2026

Recently, the supply prices of raw materials have continued to rise, and the key materials relied upon by the electric drive system have also been affected.

 

Facing the series of cost pressures caused by the increase in raw material prices, some purchasers have had to start reselecting new suppliers. During the process of selecting new suppliers, new considerations have emerged.

 

If you are in such a dilemma, I will stand from the perspective of the electric drive manufacturer and extract the following three evaluation dimensions for you. Maybe these can help you clarify your thinking when reselecting suppliers.


Dimension One: Supply Chain Resilience - Assessing the supplier's ability to resist fluctuations

When choosing a supplier, the stability of the other party's quotation is definitely one of the factors that the purchaser needs to consider. Key points to focus on include: whether through large-scale procurement, long-term contract pricing, or flexible pricing mechanisms, the upstream fluctuations are hedged?

 

When supply is relatively tight, the differences in the quality of suppliers will become apparent. The suppliers worth long-term cooperation will actively communicate about the cost structure and will prioritize the production capacity of long-term cooperation customers.

 

Our company, as an electric drive system manufacturer, also has sufficient resilience to fluctuations. We have sufficient raw material reserves to ensure that even in the event of external situation changes, we can deliver as agreed.

 

Dimension Two: System Efficiency - Transitioning from single purchase price to full life cycle cost assessment

The difference in the purchase price of the electric drive system is often insignificant when compared to the energy consumption cost throughout the entire vehicle's life cycle.

Because the purchase cost only determines a one-time expenditure, system efficiency determines the operating cost throughout the entire life cycle. An efficient controller, in the long-term operation cycle of the vehicle, may bring energy savings far exceeding the price difference at the time of purchase.

 

Our approach is to continuously optimize and adjust the system efficiency of the electric drive equipment, maintaining a high overall system efficiency under the working conditions, helping car manufacturers and operators reduce energy loss and maximizing the value of each unit of electric energy.

 

Dimension Three: Platformization Ability - Reducing the complexity of material management

If a controller is compatible with multiple vehicle models, it means lower SKU management costs, less inventory pressure, and more flexible production scheduling - these hidden cost advantages are becoming core competitiveness during the period of material price increases. If a supplier can use a mature platform to cover the needs of multiple vehicle models, this advantage is extremely significant for vehicle operators.

 

Like the control platform we have developed, it can be compatible with multiple vehicle models, and the purchaser does not need to manage a separate material system for each type of vehicle.


Regarding the procurement of the electric drive system, which aspect of cost control are you currently most concerned about?

 

XIAMEN WISEDRV focuses on the research and manufacturing of electric control systems for new energy commercial vehicles. With platform standardization design and vehicle-grade quality, it helps customers address the cost challenges brought about by the increase in raw material prices.

 

 

 

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