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Parts Suppliers Are Navigating The Electric Transition
The automotive industry is undergoing a significant transformation as it shifts from internal combustion engines to electric vehicles (EVs). Revenues for traditional engine components are expected to decline by 44%, while those for EV drivetrains and batteries are projected to rise by 245%. This shift presents challenges for suppliers, as the complexity of traditional engine powertrains with thousands of parts contrasts with the simplicity of EV powertrains.
The intricate supply chain, often comprising small family-owned businesses, is interconnected and dependent on each other's success. Concerns about EV viability, resource availability, and government support create uncertainty. Suppliers must adapt, innovate, and potentially pivot their businesses to thrive in this evolving landscape as the industry moves towards electric vehicles
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