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The Electrification Wave and its Impact on the Automotive Supply Chain

ABI Research Report
  • Analyst Report
  • 26 April 2022

The rising tide of electric vehicles (EVs) has resulted in automotive Original Equipment Manufacturers (OEMs) offering consumers more electric options of their cars, whilst maintaining traditional Internal Combustions Engine (ICE) vehicles. This approach by the OEMs imply significant growth in the number of vehicle models being developed and launched at the same time.

ABI Research is concerned that automakers have not fully considered the impact on their suppliers of increasing and accelerating model introductions. Suppliers’ resources to manage new model launches are finite and already are stretched thin. ABI Research believes that unless automakers and suppliers take the initiatives needed to expand overall program launch capacity, their electrification goals are under threat.

 

 

Important takeaways include:

  • Key recommendations for OEMs
    • Reevaluate Supplier Relationships
    • Understand Supplier Impacts
    • Foster Innovation
  • Key recommendations for Suppliers
    • Work with New Entrants to Innovate
    • Assess the Relative Value of New Programs
    • Upgrade Program Management Technology
  • ABI Research estimates the automotive industry will increase the total volume of programs by 66%

Download this report to learn more about the effects of the electrification wave on the automotive supply chain and how OEMs and Suppliers can act now to resolve bottlenecks that may lead to substantial disruptions of their operations.

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