Electric vehicles have different needs and wants than ICE vehicles. They need batteries, motors, and power electronics to operate, while ICE vehicles need fuel systems, exhaust systems, and spark plugs to burn. This means that demand for some auto parts and components is increasing, while demand for others is decreasing. The supply side must also adapt to this change by producing more of what EVs need and less of what they don’t.
Shock in the industry
Electric vehicles are also changing the landscape and structure of the auto parts and components industry. Some segments of the industry are growing faster than others, such as battery and power afghanistan number data electronics suppliers, while some segments are shrinking or disappearing, such as fuel system and exhaust system suppliers. This is leading to greater competition and rivalry among suppliers, as well as new alliances and collaborations along the supply chain.
The problem of profitability and income
Electric vehicles are also impacting the bottom line and cash flow of auto parts and components businesses. Some companies are seeing lower demand and revenue for their products, especially those that specialize in combustion engine-specific components. Some companies are seeing higher demand and revenue for their products, especially those that are investing in developing and supplying components for electric vehicles. Some companies are trying to balance both sides of the equation by diversifying their product portfolio and customer base.