Manufacturing, autos and logistics
Vehicle platform
A shared set of engineering underpinnings used for many car models.
Last reviewedWhat does Vehicle platform mean?
A vehicle platform is a common set of engineering parts, such as the floor structure, suspension, electrical architecture and often the battery or engine layout, that a carmaker uses across many models and brands. Volkswagen's MQB and Toyota's TNGA are well-known examples, and dedicated electric platforms such as Hyundai's E-GMP were built for EVs. Sharing spreads huge development costs over more cars. Example: a platform costing 3 billion to develop, used by six models selling 3 million cars in total, costs 1,000 per car; used for one model selling 500,000 cars, it would cost 6,000 per car. The risk is that a problem in one shared part can force recalls across many models.
Where does it come up in case interview prep?
- How the automotive industry works: OEMs, suppliers and dealersLesson in Automotive and electric vehicles
- Car economics, electric vehicles and the automotive supply chainLesson in Automotive and electric vehicles
- Automotive players, EV adoption by region, trends 2024 to 2026, and how to crack the casesLesson in Automotive and electric vehicles
Related terms
- Economies of scaleCost per unit falls as volume rises.
- Economies of scopeCost falls when related products share resources.
- Fixed costA cost that stays the same when volume changes, within a normal range.
- OEM (original equipment manufacturer)In autos and machinery, the company that designs, assembles and brands the final product.
- Tier 1 supplierA supplier that sells complete parts or systems directly to the carmaker.
- Battery pack costThe cost of an electric vehicle's battery pack, usually quoted per kWh of capacity.
- Installed baseThe number of a company's machines or systems currently in use at customers.
- AftermarketParts, service, repairs and upgrades sold after the original equipment.