How EVs Could Shake Up the Automotive-Parts Supply BaseAugust 16, 2023
This 17-min. CNBC report explores the “harsh future” facing companies that make parts for internal-combustion-engine (ICE) vehicles.
“Revenues for ICE cars, and fuel and exhaust systems, are expected to decline 44 percent through 2027,” the report says. “Meanwhile, for electric drivetrains and batteries or fuel cells, revenues are expected to rise 245 percent, according to a 2023 Deloitte Automotive Supplier Study. While the parts themselves are changing, the pie is also shrinking. An internal combustion powertrain has about 2000 parts. EV powertrains have about 20, sometimes less. …Even the large, publicly traded suppliers such as Bosch, Denso, Magna and ZF could be in trouble.
"The question is, will EVs kill the thousands of auto suppliers, or can they find ways to pivot, consolidate or somehow stay in business?”
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