Apple Car (AAPL) Will Likely Employ Hyundai’s E-GMP Platform in Order To Launch the EV by 2025 and Avoid Further Delays
Apple Car continues to attract undue attention in the financial sphere as analysts ponder over the product’s implications not only for the company itself but also for the budding EV sector. Now, TF Securities analyst, Ming-chi Kuo, has penned a fresh investment note on this subject.
To wit, Kuo now believes that Apple (NASDAQ:AAPL) would likely utilize Huawei’s E-GMP platform for EVs in its Apple Car in order to avoid inordinate delays associated with building a complex EV supply chain from scratch. As a refresher, the E-GMP platform features a low center of gravity due to low-mounted battery packs, a five-link rear suspension system, and an Integrated Drive Axle (IDA). Its integrated power electric system supports 400V as well as 800V charging and offers and bi-directional power conversion function. The platform offers a range of 500km and can be fully charged in 18 minutes through fast-charging.
Moreover, Kuo believes that the Apple Car can’t launch before 2025 due to the inherent complexities involved. The analyst stated in the investment note:
"Apple's deep collaboration with current automakers (Hyundai Group, GM, and PSA) who have extensive development, production, and qualification experience will significantly shorten the Apple Car development time and create a time-to-market advantage."
He then went on to state:
"We believe that Apple will leverage current automakers' resources and focus on self-driving hardware and software, semiconductors, battery-related technologies, form factor and internal space designs, innovative user experience, and the integration with Apple's existing ecosystem."
As far as the pricing is concerned, Kuo believes that Apple will target the high-end EV market. If the initial version of the Apple Car proves successful, the company might engage regional partners, such as GM and PSA, to expand production. In the note, Kuo also negated the impression that Apple’s iPhone partner, Hon Hai, would be able to secure the lucrative contract for the Apple Car via its newly launched MIH platform for EVs.
Of course, this development comes amid a flurry of reports that suggest that Hyundai remains reluctant at becoming the principal manufacturer of the Apple Car. As evidence, Reuters recently pointed to Hyundai’s earnings announcement when the company chose to remain silent on the possibilities surrounding the Apple Car. According to a Hyundai executive and quoted by Reuters, Apple’s penchant for micro-managing its supply chains is playing the role of a dampener for the company. Hyundai believes that its engagement with Apple in the EV sphere would hamper its own efforts to penetrate this lucrative sector. Consequently, as per the Reuters report, Hyundai is considering bringing its subsidiary, Kia Motors, into the purported arrangement with Apple.