Several major auto-parts suppliers are reported to showcase their technological achievements in new energy vehicles at the upcoming 10th TM Symposium China (TMC2018) later this month. Such as Bosch's e-Axle, Schaeffler's HV P2 and 48V P2 modular architecture and key technologies, as well as ZF's HVH control technology of HEV and EV can be expected.
The auto technical barrier established in the past hundred years will be undoubtedly broken down for that power system of EV no longer needs support from traditional internal combustion engines, yet acquiring core technologies of battery, motor and battery control system(BMS) is the future competitiveness. Traditional automakers like BMW, Daimler, Toyota and General Motors, as well as emerging automakers like Tesla, Nio and leapmotor have chosen to independently develop their own technologies of battery, motor and battery control system(BMS), which compressed the market for conventional parts manufacturers. Faced with such challenges, four auto suppliers have driven the electrification change.
Chart: Electrification Progress of Four Parts Giants
Bosch said the challenges ahead are twofold: Internet of things and future transportation. In view of these two major future trends, Bosch’s main strategy are electrification, automation and interconnection. Bosch’s annual investment in electrification is €400 million, about ￥3 billion. As in EV, Bosch has been doing R&D with products across motor as well as battery control system but it gave up later since the market is dominated by several leading enterprises from China, Japan and South Korea.
ZF expects to spend more than €2 billion globally to develop electric-driven products, hybrid power technology of transmission, safety system and spending on self-driving technologies R&D will raise from 6.1% of budget in 2017 to 6.5% in 2018. Compared with other auto part giants, ZF tends to bet on self-driving. However, as Stefan Sommer being forced to resign, the pace of developing self-driving was slowing down.
DENSO embarked on the road of corporation through M&A, joint venture, alliance and partnership in 2017, upgrading in various of fields like electrification and self-driving. Recently, DENSO took a stake in Creation line (open-source software and agile software developer) and spent 800 million yen for another 4.5% stake of a chip maker Renesas, continuing its strategy in developing vehicle control system and self-driving.
Schaeffler officially launched electric vehicle business last month, and set the Mobility for Tomorrow strategy to shift its business to electric vehicle solution, industrial 4.0 and digital technology for smart cars. The group's electric vehicle business is expected to account for more than 15% of the revenues by 2020.
These parts suppliers have their own focus while they hope to benefit both in the fields of electrification and self-driving without exception. Bosch and ZF have both sold their non-core businesses to China in recent years. According to recent trend, these four giants are opmistic about China's electric vehicle market and are increasingly dedicated to it.
The development of new energy vehicle industry is like a prairie fire. The vehicle industry is undergoing a rapid transformation, prompting companies that want to survive and stand out to adjust or even overturn themselves at any time in a world of rapidly evolving technology.