EVs & Manufacturing
How the adoption of EVs is impacting automotive manufacturing
and what does this mean for the future?
Prepared for EV Momentum
by Power Technology Research
Jared Kearby, Director - Industrial
Power Technology Research
Type of Work We Do for Our Clients
• The electric vehicle has seen early market success before.
• Today, EVs are on track to impact the status quo of the automotive sector.
• Wide-scale adoption of EVs will impact the automotive industry on all fronts.
Regardless of whether the EV market grows by a 15% or 35% CAGR into
2025, an impact will be evident.
Gearbox (Stages) Differential Driveshaft Clutch/Flywheel
Average Number of Power-transfer Components in ICE Vehicle and EV
ICEs* BEVs** Wheel-hub EVs
**front-wheel drive, single-motor with a single-speed gearbox.
*rear-wheel drive, 8-cylinder engine & 5-speed manual transmission
Key Impacts on the Machine Tool Market
• In this case, machine tools refers to the manufacturing of machinery used in
the cutting or forming of metals.
• Not all components will be affected, but several component markets are at risk
for reduced demand.
Risk Outlook by Component Group
ICE Component Risk Level in 2035 ICE Component Risk Level in
Power Transfer System*
Oil/Fuel Supply System
= High Risk = Moderate Risk = Low Risk
*Power transfer system includes clutches, flywheels, driveshafts (incl. CV joints) and differentials Source: PTR
What does this mean?
• Increased orders for machine tool manufacturers due to demand for both HEV,
PHEV and ICE components.
• Automotive machine tool manufacturers will see reduced orders for ICE
• Results in a shift to alternative business models. There are components that
will need to be produced for BEVs as well, such as battery casings, gears and
driveshafts, suspension coils, A-frames, etc.
• In 2016, the E-Mobility Division was formed in response to the increase BEV and PHEV
• As a result of a higher growth rate for EVs, GKN is now offering eDrive systems for the
OEMs. Although eDrive sales accounted for only 1% of GKN Driveline division revenue
in 2016, this number is expected to grow as EVs continue to penetrate the automotive
• Has invested in developing a BEV drivetrain solution for the OEMs. In 2016, the
company won its first BEV contract for Jaguar’s I-Pace, which is planned to start being
delivered in the second half of 2018.