Western Tier 1 suppliers: Electrification trends, mainly in Europe and China

Current status at Bosch, Continental, ZF, Schaeffler, Mahle, Valeo, and BorgWarner

2019/12/19

Summary
Bosch: E-mobility sales to increase 10-fold to EUR 5 billion by 2025
Continental: The Powertrain Division becomes an independent legal entity named Vitesco Technologies
ZF: E-mobility division expanded, more than EUR 12 billion to be invested in e-mobility and autonomous driving over the next five years
Schaeffler: Entry into the motor manufacturing sector, and the award of EUR 1.1 billion in business in the field of E-mobility
Mahle: Developed its own 48V battery, expanding into wireless charging technology
Valeo: Launched 48V hybrid and EV system in collaboration with Dana
BorgWarner: Announced the integrated drive module "iDM", to be installed in the EV of a China OEM in 2021

Summary

Bosch is targeting to generate revenue of EUR 5 billion from the sale of E-mobility products by 2025, and ZF announced that it will invest more than EUR 12 billion over the next five years in the business areas of e-mobility and autonomous driving. In the second quarter of 2019, Schaeffler was awarded a contract valued at EUR 1.1 billion for electrification-related products. Mahle,Valeo and BorgWarner are all focusing on the development of new products related to electrification, including 48V mild hybrids; the electrification trend across all Tier 1 suppliers is becoming increasingly active.

The strengthening of collaboration among suppliers is also becoming more pronounced, including the formation of global alliances such as the partnership between Valeo and Dana to bring to market 48V mild hybrid and EV systems. Bosch has partnered with CATL in connection with battery cells to strengthen its 48V battery system business in China, and is working to further expand its market presence in China through an alliance with NIO. NIO has also partnered with Continental, and the two companies are currently jointly conducting NVH testing for EVs.

Continental, similar to Bosch, is positioning China as a crucial market and expanding the production of components by enhancing its local manufacturing sites. ZF announced that all of its products for the China market will be produced locally in China, and the electrification trend among all of these companies in China has been clarified.

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