It is reported that more and more car companies choose to produce electric vehicle parts by themselves, and suppliers face challenges

It is reported that more and more automakers choose to produce electric vehicle parts in-house, and suppliers face challenges

2024-08-27

IT Home reported on August 27 that according to AutoNews, with the rapid development of the electric vehicle industry, more and more automakers are turning to in-house production of electric vehicle parts. Analysts pointed out that this trend may bring challenges to suppliers who hope to gain a foothold in the electric vehicle market.

Image source: Tesla

IT Home noted that Michael Robinette, executive director of automotive consulting at S&P Global Mobility, said that supplier parts may account for 60-70% of the typical value of a car. As more and more automakers produce key electric vehicle components such as motors, batteries or in-vehicle software in-house, this proportion may drop significantly.

In-house production has many clear advantages, best demonstrated by the success of Tesla, whose policy of vertical integration has propelled the company from startup to mature, profitable automaker.

Robinette noted that the dynamic between suppliers and automakers is changing and that "the industry has pivoted."

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It is reported that more and more automakers choose to produce electric vehicle parts in-house, and suppliers face challenges

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