Electronics make up 40% of a new car’s cost

Cost of car electronics see sharp rise over recent years, and are projected to make up half of the cost of a new car by 2030

Electronics make up 40 per cent of the cost of a new car, a new analysis suggests, with the figure set to rise over the next decade.

Automotive electronics - such as parking sensors, infotainment systems and anti-lock braking systems - accounted for as little as five per cent of a new car’s cost in 1970, as a result of the obvious lack of technology in cars at that time.

The figure reached 10 per cent in 1980 due to the advent of electronic fuel injection systems, and then hit 15 per cent in 1990. The research, from accountancy firm Deloitte, shows the proportion of the cost of a new car’s electronic systems was as high as 22 per cent in the year 2000, when airbags, anti-lock brakes and electronic stability programmes became increasingly standard. 

In 2010, electronics accounted for 35 per cent of the cost of a new car, with advanced driver assistance and infotainment systems having been developed. Now, in 2020, the figure sits at around 40 per cent, and is only set to carry on climbing.

Deloitte projects that by 2030, electronics could make up between 45 and 50 per cent of a new car’s value, with the report’s authors predicting: “Consumption of automotive electronic components for safety, infotainment, navigation and fuel efficiency will increase for years to come due to ever-more electronic components being applied in advanced safety features added to vehicles.”

Check out these new cars due in 2020...

Recommended

Dash cam portal saves 170,000 hours of police time in two years
News

Dash cam portal saves 170,000 hours of police time in two years

Nextbase's National Dash Cam Safety Portal is used by 33 police forces and has recorded more than 20,000 uploads
21 Oct 2020
All mobile phone use behind the wheel to be banned
Van mobile phone
News

All mobile phone use behind the wheel to be banned

A Government consultation seeks to update UK law in line with modern technology and close loopholes allowing drivers to take pictures and video at the…
16 Oct 2020
VED road tax: how much does it cost?
car tax calculator
Consumer news

VED road tax: how much does it cost?

Confused by VED road tax? Our comprehensive guide explains how much you'll pay on your next car
25 Sep 2020
Dartford Crossing toll: follow our guide and avoid a fine!
Dartford Crossing bridge
Consumer news

Dartford Crossing toll: follow our guide and avoid a fine!

Read our complete Dartford Crossing guide for when and how to pay the Dart Charge, along with guidance on appealing a fine
25 Sep 2020

Most Popular

The end of 70mph motorways? Study shows huge reduction in pollution at 50mph
Speed limit to be cut to 60mph on M1
News

The end of 70mph motorways? Study shows huge reduction in pollution at 50mph

Trial on Welsh roads shows 47 per cent drop in pollution when 50mph limits were introduced; Highways England already has plans to reduce limits to tac…
10 Oct 2020
New Range Rover Evoque PHEV 2020 review
Land Rover Range Rover Evoque

New Range Rover Evoque PHEV 2020 review

Brand-new 1.5-litre three-cylinder Ingenium petrol engine makes its debut in the new Range Rover Evoque plug-in hybrid
20 Oct 2020
Renault could cut UK models in no deal Brexit profit drive
News

Renault could cut UK models in no deal Brexit profit drive

Renault’s new CEO says the firm is examining the possibility of reducing the range of models it offers to UK buyers as it aims to boost profitability
20 Oct 2020