Strategy Analytics: Automakers Announce Plans to go All-Electric in 2021

Step-Change in Electric Powertrain Supply for Batteries, Motors and Power Electronics

BOSTON–(BUSINESS WIRE)–With Renault in June, Mercedes-Benz and Stellantis in July, to name a few, 2021 has become the year when mainstream automakers solidified their intent to become “all-electric” and transition further towards electrification. The implications for the automotive sector and the surrounding supply chain are analyzed in the latest Strategy Analytics Powertrain, Body, Safety & Chassis Service (PBCS) service electrification report, OEM Hybrid and Electric Vehicle Strategies: Global OEMs Plan For All-Electric Future.

Strategy Analytics expects there will be a step-change in the supply of batteries, electric motors, power electronics and other components associated with electrified powertrains, especially battery electric. “To secure component supply and leading-edge technologies, the mainstream automakers have recently partnered with battery cell vendors, electric motor developers and semiconductor vendors. As well as raising production capacity, automakers seek battery cells with more energy density and faster charging capability,” says Kevin Mak, principal analyst in the Global Automotive Practice (GAP). “The pace towards electrification has quickened because of tightening mandates (which could become even tighter following COP 26) and in their attempts to catch-up on Tesla. Some have resorted to the use of common platforms, from the likes of Foxconn and REE, to leverage the necessary economies of scale and ensure that their product offerings are affordable.”

Another result of this step-change in OEM strategy is that the demand for hybrid powertrains will become more temporary, tapering-off in the long-term, as countries and states (Chile, New York and Massachusetts are the latest proposing bans that come into effect in 2035) begin to impose a sales ban on new combustion engine-powered light vehicles. Demand for combustion engines could now peak in China, Europe and North America as soon as the mid-2020s timeframe as automakers prepare for an electric future.

About Strategy Analytics

Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com.

For more information about Strategy Analytics

Powertrain, Body, Chassis and Safety (PBCS) Service: Click Here

Contacts

Report contacts:
European Contact: Kevin Mak, +44 (0)1908 423 644, kmak@strategyanalytics.com
US Contact: Alexander Kutana, +1 617 614 0741, akutana@strategyanalytics.com
China Contact: Julia An, +86 10 8975 5246, jan@strategyanalytics.com