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EVs Threaten Auto Suppliers' Existence?
3 Sep
Summary
- EV transition questions survival of old auto suppliers.
- Some components remain relevant across ICE, hybrid, and EVs.
- Consolidated profit fell in FY 2025-26 despite revenue increase.
The automotive industry's pivot to electric vehicles (EVs) presents a critical challenge for established auto suppliers, raising questions about the continued necessity of their existing product lines.
However, the situation is nuanced. Certain fundamental components retain relevance across internal combustion engine (ICE), hybrid, and fully electric powertrains. These parts can be enhanced with advanced sensors, acoustic features, thermal management systems, and connected functionalities, offering both continued utility and opportunities for premium market positioning.
Despite these advantages and supplying a significant portion of India's passenger car market, one major company experienced a decline in consolidated profit during FY 2025-26. This occurred even as the company reported an 8.7% rise in revenue and recently completed its largest-ever investment phase.
