Research on the Calculation Methods of Automobile Technology Cost Base on Chinese Market

In order to evaluate the cost effectiveness of automobile technology in Chinese market, it is necessary to establish a cost research method for automobile technology. Based on the research methods of automobile technology cost in the world at present, this paper puts forward the research methods of technology cost suitable for the Chinese market. The methods are used to estimate the direct manufacturing cost (DMC), indirect cost (IC) and future technology cost of automobile technology. The research conclusions are as follows: firstly, the relevant manufacturing data of technology should be obtained based on the tear-down method. Direct manufacturing cost of relevant technology should be calculated by combining the manufacturing boundary and manufacturing database of Chinese market based on the manufacturing data. Secondly, the indirect cost of automobile technology should be calculated by combining the advantages of the retail price equivalent method (RPE) and the indirect cost multiplier method (ICM) based on the financial statements of automobile manufacturers in Chinese market and the adjustment factors studied by Environmental Protection Agency (EPA) reports. Finally, because of the complexity of the two-factor learning curve, it is suggested to use the single-factor learning curve to describe the cost progress of automobile technology. Considering that the automotive technology gap between China and foreign countries is gradually narrowing, it is effective to use the learning factors of various technologies studied in the EPA report to describe the learning effect and technology cost progress of automotive technology in the Chinese market. Through the study of various costing methods, this paper can provide a method for Chinese automobile manufacturers to calculate the cost of automobile technology when they make technical route selections.