Transition To Green Tech Is Inevitable
Over the last couple of decades, original equipment manufacturers (OEM) have been developing their vehicles to be more environmentally friendly. This constant thrust, supported by research, has now led to the development of consumer-friendly electric vehicle (EV) technologies which are helping in reducing carbon footprint to some extent.
These new technologies have also posed various challenges that include, but are not limited to, lack of charging infrastructure, higher charging time, vehicle range anxiety and sustainable supply of rare earth materials. The industry is constantly investing resources in research and development (R&D) to overcome these challenges, for example, magnet-less motors, hydrogen fuel cell and sodium ion batteries, etc, which will eliminate the use of rare earth materials from the batteries and increase the cost of ownership.
Towards the tipping point
This transition of ICE vehicles to green technologies is inevitable and is poised to explode. The industry is at the same cusp as it was in the early 1900s when the transition to the ICE vehicle from horsecarts had begun. This change will impact many automotive companies including OEMs and component manufacturers. Most of the OEMs and key auto component suppliers have been allocating their resources to new technologies to overcome these key challenges and have progressed well.
This shift is very challenging for the small and medium OEMs and component manufacturers who have not envisaged this change at the right time and have not invested in it. These OEMs must identify their key USPs and strengths and look for tie-ups with bigger players so as to not be forced out of business. The auto component companies must work towards diversification of their products portfolio to an adjacent industry. For example, auto motor manufacturers can redesign their products and manufacturing facilities to produce parts for consumer industry like washing machines or home products.
Staying relevant
The companies whose products are EV-agnostic must work towards the light-weighting of the same so that they can support the key requirement of EV vehicles.
The OEMs will continue to allocate their resources to R&D to make their vehicles more efficient, offering the best storage systems, safer, connected and autonomous and environment friendly. This change will continue to be a challenge for everyone in the auto industry in this decade. The component industry needs to be agile, reduce development time and adapt to new technologies and manufacturing processes like Industry 4.0 which will keep them relevant in this changing world.
_20240501181242original_image_36.webp)
