02 Hot Topic

New technologies and solutions challenge suppliers of the automotive industry!

Trend towards electrified mobility

With increased dynamics

The full electrification of passenger car vehicles has been discussed for many years – the actual implementation however was reluctant: Technological and infrastructural limitations as well as non-competitive cost structures led to a low number of electrified vehicles being available on the market.

Today the situation is different. Political efforts and strict legal requirements for CO2 and particle emissions significantly increase market dynamics. Defined emission limits in the three major automotive markets Europe, USA and China force automotive manufacturers to step back from only optimizing conventional powertrains but heavily increase sales volumes of purely electrified models as part of their overall fleets.

The described shift towards larger shares of battery electric vehicles (BEV) is considered by all global OEMs. New models with acceptable driving ranges at a competitive price level are announced. At the same time sales volumes of vehicles with conventional powertrains will decrease significantly.

The ongoing public debate leads already today to a sensitization of consumers with a view to E-mobility. The awareness of “emission free” driving will increase and further push a market penetration of electric vehicles, to a much larger degree than achievable by regulatory incentives such as subsidies or the usage of bus lanes.

Especially suppliers of the market for conventional powertrains will be challenged by the shift towards BEVs. Most components will be omitted and are not required anymore. In most cases part suppliers of Tier-2 or Tier-3 level will be affected.

The general value chain structure will change, automotive OEMs are expected to increase their competence level for electric motors, batteries or power electronics. The horizontal extension of competencies will absorb potential reductions related to reduced efforts and capacities (development and manufacturing) for conventional powertrain solutions and components.

The electrified future of mobility challenges suppliers of the automotive industry. FEV Consulting helps them finding a way through that complex transition process.

Suppliers need to react – now!

In a first step the sustainability of current business models need to be reviewed. How does the E-mobility shift impact today’s product portfolio? Which actions securing the suppliers’ business have to be initiated? Which opportunities arise and which regions, markets and technologies have to be addressed? Several suppliers are facing a complex transition process which requires appropriate measures in the short term.

FEV supports you finding a way through complex transition!

  • Quick check and status quo analysis of individual boundary conditions and competencies
  • FEV Technology Roadmapping and market forecasts to analyze the impact of technology change on core business
  • Definition of measures to stabilize and further develop business
  • Identification and assessment of potential new technologies and products
  • Business plan development and reorientation of strategy and business focus
  • Professional support and management of the transition process by a crossfunctional FEV expert team