Electric Vehicles (EV) - Thematic Research

Electric Vehicles (EV) - Thematic Research

Summary

The transition to electrification is creating unprecedented disruption in the auto industry. Original equipment manufacturers (OEMs) with more than a century of experience building combustion-powered vehicles are now battling overcapacity across their production networks and face big costs to retool their factories. Meanwhile, EV startups have emerged to meet swelling demand.

This report looks at the electric vehicles theme-principally, battery electric vehicles (BEVs). These models demand new technologies and components that were previously uncommon in vehicles, especially in the field of lithium-ion batteries, which are not a core competency for most traditional automakers.

For established players, we expect stress and strain on their bottom lines as the cost of converting vehicle lineups to battery-electric power begins to bite. This will also bring teething issues as these companies prepare to wind down or retool their combustion-engine manufacturing operations, likely leading to job losses as some operations ultimately become financially unviable.

The major technology themes impacting automotive in 2022 will be Cybersecurity and Internet of Things.

Scope

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