Electrical transition of the automotive industry : A case study of a Swedish automotive tool manufacturer

University essay from KTH/Skolan för industriell teknik och management (ITM)

Abstract: The need for sustainability solutions requires a shift towards renewable energy and less dependence on fossil fuels, exemplified by the EU’s Green Deal targeting zero greenhouse gas emissions by 2055. This shift creates uncertainties in the global economy, and it recently sparked the automotive industry’s move from the internal combustion engine (ICE) to the electric vehicle (EV). In turn, the transition then creates new demands and product requirements for powertrain assembly, affecting the industry’s suppliers of industrial tools and assembly solutions. A literature review was conducted to analyse and map out the automotive industry and the EV market. Findings such as driving forces, barriers, and projections about the industry were then used to forecast the development of the EV market until the year 2030. Further, an empirical study of interviews with relevant stakeholders and study visits to production sites was performed to complement the findings from the literature review. The results indicated that the EV market share is expected to grow from about 11% in 2022 to about 47.5% by the year 2030 and that the main driving forces reside on the OEM side while the main barriers reside with the consumers. Further, the results indicated that the production of EVs requires fewer tightening tools along with a need for smaller footprints and lower torque ranges. The results also revealed that automation and flexibility in assembly lines are seen as key for the production of EVs.

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