Electric Vehicle Revolution: Businesses that make ICE components face a challenging future The 2023 Deloitte Automotive Supplier Study predicts a 44% drop in internal combustion engine, fuel system, and exhaust system sales by 2027. Electric vehicle sales are predicted to expand over the next decade, supporting this projection. However, electric drivetrains, batteries, and fuel cells are expected to grow 245% next year. US growth is projected.
Powertrain part availability has decreased due to the loss of traditional components from the supply chain. Electric car powertrains, which have 20 or fewer parts, replace the bulky internal combustion powerplant, which had over 2,000 pieces. This change is to minimize car emissions. This change will reduce car pollution.
Tesla invented massive casting. The production of components is undergoing a profound transformation as a direct result of this process. Casting the essential car components all at once utilizing massive equipment streamlines manufacturing and improves efficiency. Casting all members at once gives greater casting control.
Even if automakers are bringing more of the supply chain in-house, there is still a complex global network of companies that supply auto parts. Despite automakers bringing more of the supply chain in-house, this is true. These companies provide the chain with raw materials like metals and polymers and final commodities like fully assembled cars. The multi-tiered supply chain creates interdependence among the many enterprises involved. This reliance significantly links one company’s success to another’s.
Many smaller businesses, many of which are family-owned and have decades of industry experience, need help throughout this shift. Bosch, Denso, Magna, and ZF—large publicly traded suppliers—are also affected and are spinning out or closing down their internal combustion divisions to focus on electric vehicles. Bosch, Denso, Magna, and ZF. Bosch, Denso, Magna, and ZF are listed. Bosch, Denso, Magna, and ZF are members.
Smaller suppliers must invest heavily to accomplish such pivots. To navigate the changing landscape, these suppliers must rely on their core competencies and be open to innovation.