Major auto parts supplier says EV, hybrid segment orders booming

(June 2010) If you want to find out how the overall economy is doing, check with a land planning or survey firm — they see the ups and downs in the construction industries that are a key indicator of economic health long before the rest of us get the word.

"Go-to-the-source" research holds true for tracking the automotive industry as well.

The automakers won't can tell you the trends — they are expert at muddying things up because they live in fear of the opposition finding out what they are doing. No, check in with parts and component suppliers. They get orders for stuff that's scheduled to be in vehicles that won't be built for years to come.

In that vein, its worth listening to the folks at Continental AG, a global giant in the top tier of auto industry suppliers, as they talk about electric cars and hybrids.

The company said recently that it expects its hybrid and electric vehicle business to increase tenfold by 2015 — from 40 million euros ($49 million) in revenue this year to 400 million euros by mid-decade.

That's not based on pure guesswork but on actual booked orders from the world's automakers, Joerg Grotendorst, head of Continental's hybrid and EV division, told reporters at a press conference in Germany last week.

The company, which is based in Germany and supplies lithium-ion batteries for BMW and Mercedes-Benz hybrids, says it expects overall growth in the various types of electric-drive vehicles to account for 5 percent of the global light vehicle market by 2020.

That's in keeping with other 2020 market share estimates we've heard in recent months — they range from an enthusiastic 10% from Renault and Nissan CEO Carlos Ghosn to a more subdued 3 percent from Deloitte Consulting. 

By John O'Dell
Edmunds.com