German auto supplier Vitesco expects sales of electrified vehicles to surge in coming years, which will account for over 70 percent of global passenger car production by 2030.
NEVs are becoming a serious choice in some major markets. In China, their sales are expected to hit 5.5 million units this year. The EU has recently struck a deal on a law to effectively ban the sale of new petrol and diesel cars from 2035.
"In the years to come, we will see an ever-growing range of electric vehicles," said CEO Andreas Wolf.
The prospects have made Vitesco bullish about its financial performance. It expects to see its electrification business generate sales of around €5 billion ($4.89 billion) in 2026 and to rise to between €10 and €12 billion by 2030.
"We are talking about strong organic growth in electrification, meaning an annual average increase of 40 percent up to 2026," said CFO Werner Volz.
In the past 12 months, Vitesco won orders worth around €10 billion in electrification business. It has received an order in the field of thermal management system with a total volume of more than €1 billion.
Experts believe carmakers will grow more dependent on suppliers in terms of electric vehicles' powertrains.
Battery management systems from suppliers will grow by around 10 percentage points to roughly 65 percent in 2030, with the share for inverters rising from 50 percent to roughly 70 percent in that time.
For electric motors, the expectation is that even in 2030, around 40 percent will be manufactured by suppliers.