Regulations in fuel economy and emissions are tightening globally. What does this mean for the automotive OEM market? One important impact is that environmental regulations are spurring the development of hybrid and electric vehicles, which can help increase energy security, improve fuel economy, lower fuel costs, and reduce emissions. These benefits along with the regulations are motivating consumers to purchase hybrid and electric vehicles over a conventional vehicle.
The automotive industry, including the OEM firms serving automakers, are caught in between the rapidly changing global fuel economy regulations, and consumer demand that has not yet caught up with environmental concerns. OEMs must navigate through many pressures in order to meet automaker demand for electronic components that help new hybrids and electric vehicles to function.
As the automotive industry works to develop the hybrid and electric vehicles that will inspire a change among consumers, the OEM market is subject to change as well. Here are a few ways the OEM market is already changing and how the OEM industry can respond.
Hybrid and electric vehicles are changing the automotive OEM market in the following ways:
OEMs should be responding in the following ways: