The electrification trend in the global automotive industry initially focused on BEVs, along with a shift to Zero Emission Vehicles (ZEVs), which are required to comply with environmental regulations in various countries.

However, after 2023, the global trend toward BEVs has fallen short of initial forecasts due to a slowdown in demand for BEVs in all major markets except China, as well as moves by major OEMs to focus on the practical side of the market.
On the other hand, various electrification solutions, including not only BEVs but also conventional HEVs and PHEVs, are once again attracting attention, and there is a clear movement to successfully attract real market demand.

There is a growing need for motors in automobiles and industrial equipment to rotate at higher speeds and be smaller in size.
In addition to the need to improve the heat resistance and compactness of magnets, the cost of the magnets themselves must also be lowered in order to reduce costs.
In particular, rare earths (REEs), which are used as magnet materials, pose cost challenges and geopolitical risks. For this reason, research and development of alternative materials is underway by related manufacturers.

In particular, FeN (iron nitride) magnets and Mn-Bi (manganese-bismuth) magnets are attracting attention.
FeN magnets are considered an ideal alternative material because they have approximately twice the magnetic energy of Nd (neodymium) magnets, but there are still issues to be addressed in establishing mass production technology.

Under these circumstances, OEMs and Tier 1s, which have been making large investments in the future centered on BEVs, are said to be making various efforts, including effective use of eAxle-related facilities in which they have already invested, as well as modifying their strategies to shift to multi-pathways.
In China, eAxle lines that were originally developed for BEVs are now being used for PHEVs and range extender EVs (EREVs or REEVs), and a number of manufacturers are utilizing eAxle resources for the deployment of P0, P1, P2 type + P4 HEV systems. BEVs.
Although eAxle’s priority in the industry has decreased somewhat due to the slowdown of the BEV market, it continues to occupy an important position as the electrification solution of the future, and it is also one of the core components in the transformation of electric/electronic (E/E) architecture that will be driven by the SDV (software-defined vehicle) transition. It also plays an important role as one of the core components in the transformation of the E/E architecture that is underway as a result of SDV (Software Defined Vehicle).