Auto-component – Chemical-recycling 24-03-2022 - Arhive

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Auto-component – Chemical-recycling

-Ukrainian Auto Parts Supply Disruption Stops Car Factories

As a low-wage country, Ukraine was a big source of labor-intensive car parts like wiring harnesses.

Russia’s invasion of Ukraine is reverberating through the global car industry, with the strongest effects on European carmakers who have relied on Ukrainian factories to produce components for their cars.

The Ukrainian foreign investment bureau identifies BMW, Mercedes-Benz, and Volkswagen Group brands Audi, Bentley, Lamborghini, Porsche, and Volkswagen as carmakers that rely on parts from the country’s supply plants.

That government agency says that before the invasion, the country had 38 factories operated by 22 companies from six different countries, representing an investment (since 1998) of more than $550 million. The industry employed about 60,000 Ukrainians. The companies include Bader, SEBN, Prettl, Nexans, Kromberg & Schubert, Yazaki, Fujikura, Leoni, and Aptiv. Auto-component – Chemical-recycling

Among these companies, Aptiv CEO Kevin Clark told the press at last month’s Barclay’s conference in Miami that his company had already shifted high-volume production out of Ukrainian plants in anticipation of the invasion. But most companies did not, which is leaving their customers without the parts needed to make cars.

Of the 22 suppliers working in Ukraine, half of them make wiring harnesses, while the rest make other electronic parts, seats, plastic parts and heaters. One company repairs electric starter motors. Consultant AlixPartners estimates that nearly 7 percent of the wiring harnesses used in European automotive production is sourced from Ukraine. Auto-component – Chemical-recycling

Auto-component - Chemical-recycling

-Major auto component suppliers add EV products to repertoire

Most of the supply chain players have already shifted to EV, while they have begun exporting about 20-40% to countries like Europe and the US. Most of the purely ICE-based manufacturers have also added EV components to their repertoire.

Along with automakers, component suppliers are also preparing for electrification of the entire industry.

Nearly three years ago, Uno Minda began developing specific products for the electric vehicle (EV) segment, and it supplies key components to major electric two-wheeler manufacturers in the country. Auto-component – Chemical-recycling

“In 2019, we saw EVs as the future and a big opportunity for us to increase our kit value. So, we started our engineering centre in Pune, Centre for Research, Engineering and Advanced Technologies (CREAT). We have over 200 engineers working at CREAT on a lot of incubation, EV and non-EV projects,” Sunil Bohra, chief financial officer at Minda Industries, said.

The firm manufactures alloy wheels, lamps, switches, acoustics, infotainment system, blow moulding components, controllers and telematics among others for both EV and internal combustion engines (ICE).

The company’s kit for a two-wheeler ICE would be priced at `7,500, but with incremental changes for EV, it rises to `9,000. Auto-component – Chemical-recycling

According to Crisil Research director Hetal Gandhi: “EV components such as battery pack, electric drivetrain and power electronics are seeing higher traction as these are replacing traditional engine and powertrain components in the transition to EVs.

This transition is presently being led by the two and three-wheeler segments. Battery packs are expected to account for 35-50% of the total vehicle cost, while electric drivetrain and power electronics together are expected to account 10-20%.

Players in these categories would be able to benefit the most due to EV adoption.”

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