The Importance of Developing Electric Powertrain

As the effects of the global warming crisis become more evident, the transition to cleaner mobility alternatives, such as electric vehicles (EVs), is accelerating. However, this shift poses additional challenges, as supply chains become more complex and meeting market demands becomes more challenging, highlights Antonio Rodríguez, Head of Mexico, Vitesco Technologies.

Reducing the emission of greenhouse gasses (GHG) requires participation from all sectors. Rodríguez noted that the main GHG emitters are electricity generation and heat production, accounting for 25%; agriculture, forestry, and other land uses accounting for 24%; the industry sector, accounting for 21%; and the transportation industry, accounting for 14%. “This represents a challenge for the automotive industry as it must transform itself,” Rodríguez added. 

In 2022, over 24% of light vehicles globally were partially or fully electrified. This percentage is on the rise, with projections for 2025 and 2030 expected to reach 45% and 70%, respectively. This represents an increase of 80% by 2025 and 120% by 2030.

Rodríguez noted the electrification of the global vehicle fleet poses different challenges for the automotive industry like the fast pace of new technology introduction, localized new supply chains, mechanical components replaced by software-intensive electrive systems, and stricter regulations for OEMs. 

For companies like Vitesco Technologies, meeting clients' timing requirements has become critical. Additionally, the increasing volumes in different locations are making supply chains more complex, Rodriguez noted. 

Rodríguez said that Vitesco Technologies is well-prepared to face upcoming challenges in the sector. The company boasts over 30 years of electronic expertise, which enables it to offer a modular and scalable platform, as evidenced by its fourth generation of inverters, which can be developed tailored to the voltage requirements of each of the company’s clients. “This experience in the electronics industry made us reputable among the main OEMs, over nine out of ten top OEMs rely on our control units,” he added. 

According to Rodríguez, Vitesco Technologies' mission is closely tied to nearshoring, as it aims to operate as locally as possible in each of the regions it serves. The company aims to have at least 80% of local production at its main manufacturing hubs, which will also have a positive impact on the company’s carbon footprint. Furthermore, to contribute to decarbonization, Vitesco has installed new electrification production lines in Europe, Asia, and North America, with over 90% of its supplier base covered by already existing suppliers.

Vitesco Technologies considers its operations in Mexico as key, employing 5,000 people across five different facilities in the country. This includes two manufacturing plants in Chihuahua, one plant in Morelos, a design center in Guadalajara, and a financial center in Guanajuato."In Mexico, we are actively developing electrification solutions, recognizing the talent within the country," Rodríguez concluded.