Electronic parts producers are mostly subcontractors supplying their products to big electronic parts producers like Denso. However, they can be partners in new EV development as a prime contractor if their products are accepted as a major product of a new EV. TDK, the leading producer of ferrite-based products, succeeded in halving the volume of its converter to less than one liter and concluded with Honda to supply its DC-DC converters to Honda’s Insight.
A gasoline engine vehicle has more than 30,000 parts, while an EV has 30% fewer parts than a gasoline engine vehicle. Worldwide sales of new vehicles are 80 million units annually. Although sales of EVs are still 50,000 units at present, the industrial structure of parts production will face transformation as the EV market grows. Electronic parts products are required to formulate strategy on how to make the best use of their accumulated technologies to survive in the market.