Supply Base Development for Zero Emission Truck Drivetrains

Supply Base Development for Zero Emission Truck Drivetrains This study provides an overview of the growth in zero-emission truck production, considering how this trend might impact vehicle OEMs with respect to drivetrain supply choices. In particular, it looks across three critical systems: 1) Integrated e-axles, 2) Direct oil cooled motors, and 3) Multispeed transmissions. Trade-offs for make-or-buy approaches are discussed with respect to the careful balancing of strategy, supply risks and economic drivers to ensure a sustainable competitive advantage. The zero-emission trucking market is developing rapidly, and vehicle OEMs need to make the right procurement choices to achieve on-time and budget delivery of competitive trucks. Key insights:

• Zero emission truck production is predicted to grow by 2.6m units globally from 2023 to 2033, the majority driven by China, Japan, the European Union, North America, and India
• China is forecast to produce more electric trucks in the next decade than all other major countries combined, though fossil fuels will still play major part in the heavy and medium-duty commercial vehicle markets
• Three critical areas of drivetrain development have emerged that vehicle OEMs will need to carefully manage to build a technical advantage for their zero-emission truck offering
  • Integrated e-axles
  • Direct oil cooled motors
  • Multispeed transmissions
• Vehicle OEMs will need to assess how much of the drivetrain to make, or buy, depending on business strategy, supply risks and economic drivers – all of which could change rapidly with time
• Mature vehicle OEMs with strong R&D and manufacturing capabilities will likely develop core drivetrain systems in-house, whilst start-ups are more commonly going to outsource these technologies
• The drivetrain supply base is developing quickly, allowing key attributes to be used to help identify and select suppliers where outsourcing is the preferred business strategy
• To capitalise, a robust supplier selection process and the knowledge and experience to adapt in a changing marketplace are essential.

We invite industry professionals, researchers, and other stakeholders to download the full study to gain a better understanding of zero-emission truck drivetrains, their supply base, and key considerations for vehicle OEMs.