[The Current State of Future Cars] "The Formula for Building Cars Is Changing" Parts Suppliers Undergo Transformation

Transition in the Auto Parts Industry as Electric and Autonomous Vehicles Rise
Battery and Semiconductor Companies Form Horizontal Partnerships with Automakers
Active Development of Integrated Platforms, Large Displays, and Perception Sensor Technologies

Hyundai Mobis's electrified chassis platform. It features adjustable sizes and a lowered ground clearance.

[Editor's Note]

Smart and clean. This sums up the direction of future cars. True to the word "automobile," these vehicles will move on their own and, by not burning fossil fuels, will produce no emissions. The reason the automotive industry is said to be undergoing a major transformation is that future vehicles cannot be manufactured using only traditional methods. The century-old paradigm of automobile production is changing, as it now requires efficient control of complex electronic devices and communication between different means of transportation. As vehicles become fundamentally different from those of the past, automakers are no longer content with simply manufacturing and selling cars; they are expanding into various upstream industries. They believe that understanding how customers use their vehicles and the entire lifecycle of a car is essential to enhancing the competitiveness of their finished products. This article examines the current trends and progress in the development of future automobiles.

[Asia Economy, Reporter Choi Daeyeol] As the number of vehicles powered by electric motors and capable of autonomous movement increases, the supply chain structure that has supported the automotive industry for over a century is also showing signs of change. With declining demand for internal combustion engines, companies specializing in exhaust and fuel systems are expected to struggle. At the same time, the status of suppliers in fields such as batteries and core electronic components-areas that are difficult to develop independently in a short period-has risen, making horizontal relationships more natural. As the patterns of vehicle production and consumption are expected to change dramatically, parts suppliers are also actively engaging in the development of future mobility technologies.

The traditional automobile production process was based on strict division of labor. Secondary and subsequent suppliers would each manufacture their respective parts, which were then modularized and systematized before being assembled by the final automaker. This pyramid structure, with the automaker at the top and tens of thousands of suppliers below, meant that supply chain management was directly linked to the competitiveness of the final product.

In the future automotive market, where electric and autonomous vehicles are commonplace, the most significant changes are expected in the parts sector. According to analysis by Deloitte, the internal combustion engine market is projected to shrink by about 15% to $12.3 billion by 2025 compared to 2020. The situation is similar for other internal combustion drivetrain sectors, with exhaust (-15%), fuel (-15%), and transmission (-10%) all expected to decline.

Hyundai Motor Company and Kia's dedicated electric vehicle platform E-GMP

In contrast, markets related to electrification and autonomous driving-such as electric drive units (+475%), batteries and fuel cells (+475%), and advanced driver assistance systems (ADAS, +150%)-are expected to grow significantly. Meanwhile, technology partnerships and mergers and acquisitions (M&A) among suppliers, who previously divided up the work, have already become active. This is because the integration of vehicle electronics, as well as the convergence of advanced engineering, digital services, and software, has become a clear trend.

The competition for technology development related to future mobility has intensified. Hyundai Mobis's integrated chassis platform for electric vehicles, e-CCPM, targets purpose-built vehicles (PBVs), for which demand is expected to surge. This all-in-one platform integrates a size-adjustable aluminum frame with an electric vehicle chassis module and battery system. Its key features include easy size adjustment and a low-floor design. In addition, it employs a system where each wheel is powered independently, allowing all four wheels to rotate 90 degrees for on-the-spot rotation or to move sideways like a crab without turning.

Aerial view of technology utilizing the vehicle interior dashboard panel as a display

As autonomous driving becomes more widespread, demand for in-vehicle content is expected to rise, leading to the advancement of various infotainment systems such as displays. According to data compiled by Continental, as recently as the mid-2000s, driver instrument panels and dashboard displays were only about 3 to 3.5 inches in size. Over time, screens have grown to the point where they can now stretch from one end of the vehicle to the other (pillar-to-pillar displays). Going further, technologies have already been prototyped that display driving information or video directly on door or dashboard panels, as well as large variable (swivel) displays that move vertically within the vehicle.

An industry insider stated, "As drivers become increasingly free from the act of driving itself, demand for entertainment and convenience features will surge. As cars transform from simple transportation into complex cultural spaces, not only automakers but also electronics, telecommunications, and internet companies are competing to secure infotainment technologies ahead of the curve."

Hyundai Mobis Electrified Chassis Platform eCCPM

There are also technologies that monitor biometric signals via in-vehicle sensors to detect the driver's condition and support safe driving. In Europe, there are discussions about mandating such features in future new vehicles. Hyundai Mobis's Smart Cabin Controller measures and analyzes biometric signals such as driver posture, heart rate, and brain waves to assess health and detect drowsy driving. It provides alerts via the navigation or cluster, and also controls the vehicle's internal temperature, humidity, and carbon dioxide levels. In emergencies such as cardiac arrest, it is expected to be able to guide the driver to the nearest emergency room. In short, the "brain" of the car is becoming much smarter.

Technological development related to tires-which are directly linked to driving safety and ride comfort-is also active. Electric vehicles are about 400 to 500 kg heavier than comparable internal combustion engine vehicles due to battery weight, so tire performance must be enhanced to support the additional load while maintaining optimal performance. In addition, autonomous vehicles must be able to respond flexibly to sudden tire incidents.

Hyundai Rotem's multipurpose unmanned vehicle equipped with Hankook Tire's airless tire i-Flex
Photo by Hankook Tire

Hankook Tire's airless tire, i-Flex, targets these needs. Instead of relying on air, it eliminates the risk of punctures and features a structure inspired by human cell architecture to effectively disperse road impacts. While current technology allows real-time monitoring of tire pressure using sensors, the next generation of intelligent tires will use collected data to predict tread life and detect abnormal behavior.