Companies that make parts for combustion engines face a difficult future. Revenues for ICE cars and fuel and exhaust systems are all expected to decline by 44% through 2027. Meanwhile, revenues for electric powertrains and batteries or fuel cells are expected to increase by 245%, according to a 2023 Deloitte Automotive Supplier Study. As the parts themselves change, the pie is also shrinking. An internal combustion powertrain consists of approximately 2,000 parts. EV powertrains have about 20, sometimes less. Automakers are also finding ways to manufacture parts more efficiently through methods such as giga-casting, developed by Tesla. There are thousands of parts in cars that come from companies all over the world, a whole branching supply chain of companies, each dependent on the success of the others. Many of these companies are small family businesses, but even the large, listed suppliers such as Bosch, Denso, Magna and ZF could be in trouble. The question is: will EVs kill the thousands of auto suppliers or can they find ways to pivot, consolidate or somehow stay in business?

Chapters:
00:00 — Introduction
01:52 — The shift to electric vehicles
05:55 — Lower demand
10:19 — Volatile times
11:42 — Industry is running

Produced by: Robert Ferris
Editor: Darren Geeter
Senior Managing Producer: Tala Hadavi
Graphic: Jason Reginato, Andrea Schmitz
Camera and production support: Andrew Evers

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How EVs are shaking up the auto parts supply industry

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