The global automotive industry is undergoing another wave of restructuring, with the trend of modular platforms gaining momentum. In response, Gogoro is set to implement strategies that enhance platform applications.
Gogoro interim CEO Henry Chiang stated that they must avoid excessive design and refocus on customer needs. More specifically, this refers to Gogoro's complete vehicle platform plan.
Gogoro's strategy
Currently, multiple platforms exist, covering entry-level, mid-range, and high-end products, each exhibiting some differences. However, this also signifies hidden costs, such as significant inventory levels. Therefore, reducing the number of platforms to five aims to drive overall vehicle business development.
The primary goal of Gogoro's complete vehicle platform plan is to lower R&D and production costs, thereby enabling consumers to access models with higher cost-performance ratios.
Secondly, Chiang noted that the automotive industry's so-called lag typically spans at least two years since developing a model generally requires about two to three years. The current electric motorcycle market has become niche-oriented, with consumer demands constantly evolving. A unified platform can help shorten development cycles and more timely meet consumer needs.
Thirdly, Chiang believes that as a manufacturer, enhancing quality consistency is an unavoidable responsibility. Through the platform and long-term validation, even aesthetic components are maintained under certain quality control.
Finally, Gogoro's complete vehicle platform will benefit the PBGN alliance's development. This approach differs significantly from past methods, Chiang explained. Previously, the strategy was to promote models first and then encourage PBGN to adopt new complete vehicle platforms. The upcoming approach will be the opposite, allowing PBGN partners to simultaneously develop their own models, ultimately boosting overall electric motorcycle sales.
Relevant supply chain operators stated that over the past decade, more than ten platforms had been developed to meet the needs of PBGN members. While these efforts met partner requirements, many were short-term demands that became obsolete without iteration or updates.
Thus, supply chain stakeholders view Gogoro's simplification of platform numbers positively, as it indicates that Gogoro would not spend lavishly on mold development while risking the creation of ineffective models.
From a cost perspective, eliminating one new model could potentially save NT$12 million (approx. US$366,300) in chassis costs, said industry players. Although the costs associated with shell design remain necessary, this situation represents a win-win for Gogoro, the supply chain, and brands alike.
Gogoro's expanding focus on energy and high-end models
In addition to the new electric vehicle (NEV) platform initiative, Gogoro has clearly outlined plans for energy business development. Coupled with the recognition of high-end models' importance in the market and the successful performance of green license plate EVs, industry insiders mentioned that future orders from Gogoro would focus on hub motors and direct current motors, relying on controllers for power output regulation.
In other words, Gogoro may shift its product focus towards entry-level and high-end models, targeting Taiwanese consumer preferences with more precision.
Gogoro has faced numerous challenges over the past decade. When founder Horace Luke handed operational authority to Chiang, the supply chain expressed concerns about subsequent developments. However, following the announcement of a three-year development plan, supply chain confidence seems to have rebounded.
Nevertheless, whether Gogoro can fulfill its commitments made earlier this year remains contingent not only on its efforts but also on its ability to adapt to market changes, especially considering competitors like Kymco and SYM, which are also expected to unveil new initiatives by 2025.
The development of the EV market tests consumer faith, confidence, and budgets, but subsidies and policies are also crucial factors. Consequently, whether the consumer market will respond favorably remains to be observed.
