Electrification In The Automotive Industry – Threats And Opportunities
The automotive world faces its biggest shake-up since Ford: EVs surge while diesel and ICE sales plummet. Discover how OEMs and suppliers are racing to adapt, redeploy skills, and survive in a future dominated by electric and zero-emission vehicles.
The automotive industry is going through its greatest upheaval since Henry Ford introduced mass production.
The move to Electric Vehicles (EVs) is gathering pace in many markets globally, and the threats to the traditional OEMs and their suppliers are existential.
Added to this is the rapid decline in diesel sales in Europe and the disruption to supply chains due to Covid, and it is the perfect storm for many involved in the ICE (Internal Combustion Engine) sector.
Threats due to Electrification of Automotives
Disruptive innovations in the automotive industry has caught many of the major OEMs off guard – Tesla in the US and many Chinese manufacturers were much quicker in moving straight to BEV (Battery Electric Vehicle) technologies. This has left many major manufacturers in North America, Europe and Japan playing catch up.
The scramble is now on to pivot the skills and resources within the ICE automotive sector to develop and supply BEVs. But this is not simple by any means.
Automotive supply chains are highly integrated, and many tier 1 and 2 suppliers rely on ICE volumes almost exclusively. With these volumes dropping dramatically, there have been and will continue to be casualties in the automotive sector…
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