Japanese OEMs Face U.S. Supply-Chain Challenges to Expand EV Production

April 12, 2023

Japanese automakers reportedly are facing an “urgent need to create local supply chains to prevent being shut out of the bonanza” to build electric vehicles (EVs) in North America, according to a Nikkei Asia report. The Inflation Reduction Act and its associated tax credit for consumers who purchase EVs assembled in North America, has automakers around the world rushing to invest. Yet, as noted in the article, as of 2029 the big five Japanese automakers are projected to annually produce 950,000 EVs in North America, accounting for only 20 percent of the expected North American market at that time. 

To make a more dramatic into North American EV production, Japanese automakers "have to expand to local suppliers that are different from the procurement network built up through the production of engine-powered vehicles," said Tomoyuki Suzuki, managing director of U.S. consulting firm AlixPartners.

Technologies: Management


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