The accelerating shift toward a fully electric future poses challenges and opportunities for OEMs and suppliers in the automotive industry. As product landscapes transform, the relationship between original equipment manufacturers (OEMs) and suppliers must evolve. A collaborative partnership, emphasizing flexibility and integration capabilities, is crucial for mutual success in this changing landscape.
While electrification gains momentum, OEMs traditionally rely on their supply chain for system development and integration. However, as the electric vehicle (EV) market expands, many OEMs seek greater involvement in developing and producing their eDrive systems. Some aim to in-source the entire system, while others opt to source components for self-assembly. For suppliers, adaptability and collaboration will be pivotal.
The opportunity for advancing EV system technology is extensive, focusing on enhancing battery capacity and efficiency and reducing charging times and costs to boost consumer demand. The industry’s main challenge lies in achieving rapid advancements. Striking the right balance between leveraging external technological expertise and making in-house investments will determine success.
Electrification is just one aspect of the broader trends disrupting the auto industry. Engineers are concurrently addressing connectivity, autonomous driving, and evolving mobility demands, all fueled by the growing role of software. The shift from first-generation EVs, emphasizing speed and power, to the second-generation, prioritizing driving dynamics, agility, and drivability, adds complexity to the industry landscape.
An open, collaborative, and flexible approach becomes essential as the relationship between OEMs and the supply chain evolves. This approach empowers OEMs to adapt to changing trends, deciding which components to own and which to source from other manufacturers. Such adaptability is crucial for maintaining competitiveness in the marketplace.