Impact: High

Electrification: Clearly, there is a significant shift in demand from internal combustion engine parts to electric vehicle parts. This requires retooling production lines, developing new expertise, and establishing new supply chains for lithium, rare earth elements, and other raw materials. Now, more than ever before, there is a need to collaborate with new suppliers, particularly electronic component and battery specialists.

Connectivity: Component manufacturers are seeing a more complex, variable supply chain for advanced electronic components, sensors, and communication modules. Closer integration with original equipment manufacturers is needed to ensure compatibility of connected technologies and to maintain performance standards.

Impact: High

Electrification: New fleet management dynamics are developing. Companies are having to plan for charging infrastructure and the logistics of managing charging schedules. The components supply chain is shifting towards electric powertrains and batteries, but the adoption rate is slower than in the passenger vehicle subsector. New partnerships are emerging with battery manufacturers and technology providers.

Connectivity: More complex, diverse component supply chains are also developing, with sensors, cameras, communication modules, and more. In addition, there are new business models – visibility features and uptime management are becoming essential. To seize new commercial mobility opportunities, new partnerships are being developed between automakers and logistics providers.

Impact: Low

Electrification: Tire manufacturers are experiencing a slight change in demand patterns and logistics for tire replacement due to the higher torque of electric vehicles. Some supply chain adjustments are necessary, but these are not transformative. The development of tires specifically designed for electric vehicles requires a keener focus on lower rolling resistance and durability.

Connectivity: There is a moderate increase in complexity in the supply chain with the development of smart tires. These feature embedded sensors to monitor tire pressure and wear. Along with introducing new electric components into the supply chain, smart tires enable new business models. For example, by managing varying product lifecycles and holding different inventories, a tire manufacturer can exploit valuable new pay-per-use opportunities.

Impact: High

Electrification: Within the passenger vehicle supply chain, there are fewer mechanical parts and more electronic components. Specialized logistics solutions and regulatory compliance are required for vehicle batteries, as these are classified as dangerous goods. New partnerships are forming with battery manufacturers and technology providers. Companies are redefining the supply chain and creating a completely new ecosystem that supports new materials sourcing as well as dangerous goods handling.

Connectivity: Robust data management and cybersecurity are required for vehicle-generated data. Companies are integrating new technologies and service providers into the supply chain. In addition, sourcing and managing software updates and over-the-air service providers has added a new supply chain layer. And a more complex, diverse component supply chain is developing, containing sensors, cameras, communication modules, and more.