Suppliers expect negative impact from EVs

As carmakers amp up production of electric vehicles, many suppliers are not quite as excited.

A recent survey from the Automotive Aftermarket Suppliers Association found that a lot of its members are expecting that the electrification trend for vehicles will have an effect on their business in the next 10 years – and much of that effect will be negative, according to the Q3 2017 Supplier Barometer survey from the association.

But that doesn’t mean suppliers are sitting idly by.

“Although the majority of AASA Barometer survey respondents are concerned about the impact from electrified vehicles, the majority also report preparations are underway to respond to new market demands,” said Bill Long, the AASA’s president and chief operating officer.

“About one-quarter of those expecting an impact report having the products needed to capture sales as EV takes hold,” said Paul McCarthy, executive vice president at the AASA.

For example, he added, almost half have started or are planning to start research and development initiatives to be part of electrification.

“Although it is too soon to say that the age of the electric vehicle is upon us, it is safe to say that suppliers have begun EV preparations,” added Philip Atkins, the AASA’s director of strategic research and planning.

The survey of supplier members is conducted quarterly to gauge insights on market outlook, pricing, gross margins, inventories and capacity, and includes questions about current trends and topics.