Car component cost breakdown

According to the 2012 study Automobile Industry Retail Price Equivalent and Indirect Cost Multipliers, the breakdown of the production cost of a car is: Raw materials and the prices of auto parts – 57% of the total price Research, development, engineering, and running the facilities – 16% Average advertising charges for each sold unit – $1,091

There are four major cost drivers in the production and sale of an automobile: Raw materials contribute about 47% to the cost of a vehicle. On average, an automobile is 47% steel, 8% iron, 8% plastic, 7% aluminum, and 3% glass. Other materials account for the remaining 27%. Approximately 22% of an automaker’s operational costs depend on steel.

Cost components. There are four major cost drivers in the production and sale of an automobile: Raw materials contribute about 47% to the cost of a vehicle. On average, an automobile is 47% steel, 8% iron, 8% plastic, 7% aluminum, and 3% glass. Other materials account for the remaining 27%.