The Trend of Automakers' In-House EV Component Production

TapTechNews August 27th news, 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 components. Analysts point out that this trend may pose challenges for suppliers who hope to gain a foothold in the electric vehicle market.

TapTechNews noted that Michael Robinet, managing director of automotive consulting at S&P Global Mobility, said that suppliers' 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 electric motors, batteries or in-vehicle software in-house, this proportion may decrease significantly.

In-house production has many obvious advantages, and the success of Tesla is the best proof. Its vertical integration policy has driven the company from a start-up to a mature and profitable automaker.

Robinet pointed out that the dynamic relationship between suppliers and automakers is changing, and the industry has turned.