The last 40 years have delivered incredible progress in the automotive industry. However, now the automotive industry is at a critical inflection point. Sweeping forces are disrupting the status quo as incumbent OEMs battle startups and begin to grapple with how to convert their businesses to electric vehicles (EVs).
In a recent webinar hosted by TADA, OEM executives from legacy and startup companies talked about the state of the automotive industry and provided a blueprint for OEMs that are trying to dominate the EV market. TADA’s Co-Founder & Chief Product Officer, Nilesh Shah, moderated the discussion with leaders from legacy manufacturers and EV startups.
There are 4 mega trends impacting the auto industry: electrification, connectivity, autonomy, and shared mobility. Legacy manufacturers have to respond to more complex EV architectures while also managing their existing vehicles. They need the infrastructure to support an EV push, including charging networks and battery supply chains. Automakers large and small are challenged to forecast and acquire critical parts, especially semiconductors.
EV startups are at somewhat of an equal footing with legacy manufacturers: neither group is experienced with mass EV production. The only advantage legacy manufacturers have is existing supplier relationships, but EV startups benefit from designing vehicles from the ground up for EVs, while incumbents have to juggle competing priorities.
Based on the panel discussion and TADA’s experience working with automotive clients, TADA has developed a 5-step blueprint that OEMs can follow to dominate the EV market. These steps involve understanding and monitoring material and component availability across tiers, integrating multiple data sources to build supply chain visibility, building relationships with suppliers and providing them visibility into demand, understanding battery supply chains including raw materials and their sources, and differentiating with software.
One panelist noted that EV startups should think about building for scale from day one. This means thinking about supply chain visibility and having a platform that can grow with the business. TADA’s supply chain visibility platform can help EV startups and legacy manufacturers alike.
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