EV News

Electric Car Industry Booming and Attracting New Auto Suppliers Across the World – 2023

Electric Vehicles are in trend for the last decade and the auto industry is booming in the EV segment. If we talk about the flow of money in the EV market, a total of 1.3 trillion dollars is targeted to be invested in the design and development of electric vehicles across the world. As more money is being invested in the market, it is providing new opportunities for suppliers and startups.

Many carmakers have considered the decade as the era of the EV market boom and targeted rolling out their electric cars by the year 2025.

To achieve the target of the established carmakers and fill the gap in designing and developing EVs, startups, and suppliers are helping.

What are the opportunities in Automotive due to EVs?

The contracts by the automakers are being grabbed by many new suppliers and startups, for providing batteries, motors, and inverters.

Many of the companies and suppliers who were focused to provide auto parts for other niches are currently taking part in EV contracts.

CEO of the F1 engineering company, Nick Fry also shared that, carmakers are dependent on suppliers and ask questions like, how things are made, and how they are working properly.

EV contracts are huge opportunities for startups currently.

What are the takes of OEMs for EVs?

The automakers, who manufacture the automobile in very high volume units, prefer to design and develop EV parts and components in their own company, rather than being dependent on third-party suppliers. As the Covid impacted the companies, due to the lockdown and shortage of the components, the companies were a bit cautious about the fact of being dependent on other companies.

To support it, the higher official of Ford from Britain, Tim Slatter shared that, the company can’t rely on third-party suppliers to make such high investments for them.

What are the takes of Tier 1 Suppliers for EVs?

As the EV market is growing all over the world, many traditional Tier 1 supplier companies in the Automotive industry, like Bosch and Continental are also investing heavily in EV technologies. The objective is to keep leading in the changing automotive market and provide the best possible solutions to OEMs.

The mid-scale and smaller auto companies are sharing that, they are seeing many opportunities in the EV market.

The smaller companies are getting opportunities from the automakers, that manufacture low volume of EVs and cannot afford to invest very much in EV technologies.

Final Words

Certainly, the EV trend is making a huge impact on the automotive market across the world. Because of it, carmakers have invested a large sum of money in EV technologies.

The high-volume manufacturer is more inclined to design and develop EV technologies in-house, but low-volume OEMs, that cannot afford to invest very heavily in EVs, are creating more opportunities for new suppliers and startups.

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Ravina Parmar

Ravina has worked for the world’s top automakers and fascination towards the electric vehicles. She is the main writer on EVsFollower.

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