What is the proportion of material cost to total production cost for automobile components ?
The proportion of the material cost to total production cost for automobile components means a trade-off for the final product. But as material costs are aligning slowly globally, one can get quite similar material costs no matter where they manufacture the product. The local cost of raw materials will give an overview of material costs. Taking it as a benchmark, one can get cheaper and more expensive materials for the products. Cheaper raw materials mean cheaper products, but it may lack durability or quality. More expensive materials will immediately increase manufacturing costs but provide longer-lasting and higher quality products.
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