The Electrification of the Powertrain and its Impact on the Machinery Industry and Component Suppliers

Authors

Thomas Lüdiger, Dr. Michael Wittler,
FEV Consulting GmbH, Aachen

Summary

The transformation of passenger car propulsion systems from combustion engines towards electrified and all electric powertrains is gaining traction. For the three main automotive markets EU, USA and China FEV expects battery electric vehicles to account for 22 % of sales by 2030, while full and plug-in hybrid vehicles account for another 13 %. This transition has a major impact on the automotive supply chain, because an electric powertrain requires approximately 60 % less manufacturing process effort than a conventional powertrain. On the other hand the manufacturing process effort of a plug-in hybrid powertrain is approximately 25 % higher. Considering future sales volume of powertrains as well as their required manufacturing effort, FEV expects that manufacturing process related value creation will increase by 1.7 % annually between 2017 and 2030. However, some systems and markets will face consolidation. Companies in the automotive supply chain need to assess their market positioning and re-allocate resources in order to actively shape the transition and participate in the growing business of electrified powertrains.

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