Battery-electric vehicles (BEVs) are expected to dominate long-term, yet range-extended electric vehicles (REEVs) and hybrids (HEVs) will play a crucial bridging role over the next decade. While ICE volumes decline, profit pools remain significant in specific segments, requiring careful portfolio steering.
Executive Summary & Recommendation
- Market Dynamics: Strong push for BEVs, but infrastructure gaps and affordability challenges sustain demand for REEVs/HEVs in the medium term.
- OEM Implications: Diversified powertrain portfolios are not optional—strategic flexibility is key to capturing value and mitigating risks.
- Supplier Opportunities: Growth potential in e-motors, batteries, transmissions, and REEV-specific components as volumes rise.
- Competitive Pressure: China sets cost and speed benchmarks, requiring U.S. players to accelerate innovation and partnerships.
Recommendation: U.S. OEMs and suppliers should adopt a dual-track strategy—investing in BEV leadership while leveraging REEV/HEV as transitional profit pools. Early positioning in REEV-specific modules and system integration will differentiate winners. Porsche Consulting supports stakeholders with tailored roadmaps, profitability scenarios, and go-to-market strategies to secure competitiveness in the electrified era.