In 2022, BEV/PHEV/FCEV sales exceeded 10 million units as the electric vehicle market continued to expand rapidly amid a slow recovery in the total global market. The North American electric vehicle market, which has become a large market following China and Europe, will reach less than 1 million units in 2022, but in the first half of 2023, BEVs alone will increase by 62% year-on-year to just under 550,000 units, and car manufacturers are announcing plans to introduce electric vehicles in areas such as SUVs and pick-ups one after another. The government has also removed sales incentives for electric vehicles with Chinese batteries, while building up subsidies for investment in batteries for electric vehicles in the US.

In the North American region, in view of this situation and in anticipation of increased demand for electric vehicles, there has been a series of announcements of plans to increase production in the field of electric components. In particular, in the eAxle sector, plants producing motor cores had already been established in Canada and Mexico to avoid anti-dumping duties, but an increasing number of Tier 1 component manufacturers are increasing their eAxle production in Mexico in line with major automobile manufacturers’ increased production capacity for electric vehicles in North America. Furthermore, with Tesla preparing to produce low-cost BEVs in Mexico, the concentration of component manufacturers in the Mexican region is also expected to increase.

Optimising the balance of the green supply chain in North America will be a challenge in order to produce electric vehicles in North America at competitive prices while taking advantage of policy incentives, including the IRA Act and the USMCA, and avoiding regulations and constraints.

The multi-client survey will provide a fresh look at the green supply chain in the North American region, as well as a vision for the future of the green supply chain network as envisioned by each company.