Simpler EV powertrains do not mean simpler supply chains

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Dealers should not assume that the shift to electric vehicles will make vehicle supply more dependable

An EY study for European automotive manufacturer organisation ACEA highlights how components critical to electrification remain exposed to concentrated production, limited alternatives and competition from other industries such as AI infrastructure, data centres, defence and renewable energy businesses

The study identifies semiconductors, silicon and copper among the components exposed to competition from other sectors

It also highlights lengthy qualification and capacity extension issues that limit manufacturers’ ability to respond quickly when supplies are disrupted

The potential consequences include less predictable vehicle allocations, delayed deliveries and pressure on pricing if manufacturers face higher costs or struggle to secure components

Prepared in July 2026, the research examines 10 selected automotive materials and components and assesses European industrial vulnerabilities and challenges the assumption that electrification alone will ease supply risks

Nor does representing several brands necessarily remove that exposure as different manufacturers often depend on the same processing centres, specialist suppliers and transport routes, allowing a single disruption to affect several brands exposed to a single bottleneck

“Strong concentration of supply chains across a limited number of countries, suppliers, and processing hubs creates structural dependency and limited diversification options,” the report states

Source: www.am-online.com