If an internal combustion engine car is replaced by an electric car, more than 10,000 parts and 40% of parts will disappear. Engine parts, which were the core parts of the internal combustion engine, will be turned into batteries, which will deepen the concerns of engine parts makers with the largest portion of the automobile manufacturing industry.

According to the Korea Exim bank, 18,000 parts of internal locomotive engines, which are made up of about 30,000 vehicles, are expected to be replaced with electric cars, resulting in a total of 18,900 vehicles, The biggest impact was on 6900 engine parts (23%) of internal combustion engine being reduced to `0` in electric cars.

In the case of electric vehicles, motor and battery replace the engine of the internal combustion engine. Accordingly, existing engine parts makers are unlikely to be able to shift their businesses to replace the electric cars. It is estimated that domestic auto engine parts makers account for about 20% of auto parts makers. This is the highest proportion of 1841 automobile parts makers out of 13,378 (as of 2015) followed by parts suppliers for automobile parts (1,825), power transmission equipment manufacturing (1,460), and electrical equipment manufacturing (694). A senior research fellow at Lee Hang-gu Industrial Research Institute (KIET) said, "Domo phenomenon may occur in a domestic industrial ecosystem where a primary company controls a secondary company and a secondary company controls a tertiary company "He said.

Nevertheless, there seems to be no significant change in driving, braking devices, body parts, suspension and braking parts. Actual drive, transmission, and braking system components will be reduced in absolute numbers, but the proportion of the total vehicle will remain at a similar level. It is expected that the proportion of body parts and brake parts will increase.

Korean electric vehicles exceeded 10,000 units of sales per year for the first time this year after exceeding the cumulative registration number of 10,000 vehicles at the end of last year. As the government plans to increase the number of electric cars by 2022 to 250,000 units by 2020, the growth of electric cars is expected to increase further.

Kang Jung-hwa, a senior research fellow at the Export-Import Bank, stated, "we will not be able to hear more electric vehicles as an engine parts company to replace batteries."

By Kim Yang Hyuk mj@


[ copyright ⓒ The Digitaltimes ]