Charging Ahead: How Small Businesses Can Thrive in the EV Supply Chain Disruption
The electric vehicle (EV) boom is transforming the automotive industry. The sale of electric cars, buses, and bikes is growing worldwide, while that of internal combustion engine vehicles is declining. This is changing the landscape of the automotive supply chain. How are small businesses affected, and what should they do to be future-ready?
Suhasini Kirloskar discussed this with an industry expert, Rahul Joshi, marketing consultant and founder SMJ Consultants.
Key takeaways for the automotive supply chain
EVs are the future, but the transition will take time: While the shift towards EVs is inevitable, it won’t happen overnight. Businesses need to prepare for a gradual transition, not an immediate disruption.
Embrace the green shift: Instead of fearing EVs, businesses should view them as an opportunity. They can adapt their expertise in manufacturing components to cater to the EV industry, which requires different materials and technologies.
Look beyond automotive: The automotive sector is a high-volume market, but other industries like marine, defense, and electronics are also growing rapidly. Businesses should explore diversifying their clientele to mitigate risks and capitalize on new markets.
Focus on core strengths: Instead of being just an automotive supplier, businesses should focus on their core competencies in metalworking, polymer manufacturing, or other relevant skills. This allows them to cater to a wider range of industries and remain competitive.
Specific advice for small businesses (MSMEs):
Don’t be afraid of change: The automotive sector is evolving, and MSMEs need to be adaptable. They should view the transition to EVs as a chance to reinvent themselves and explore new opportunities.
Invest in future-proof technologies: Upskilling in areas like electronics, instrumentation, and digital systems will position MSMEs for success in the EV era.
Seek out new markets: Don’t be solely reliant on the automotive sector. Explore supplying to other growing industries like defense, exports, and electronics.
Focus on quality and efficiency: Regardless of the industry, MSMEs should excel in delivering high-quality components within desired specifications and timelines. This will be their key differentiator in a competitive market.
By embracing change, diversifying their offerings, and focusing on their core strengths, small businesses in the automotive supply chain can thrive in the face of the EV revolution. The video provides valuable insights and actionable advice for MSMEs to navigate the evolving landscape and secure their future success.