Industry Intelligence Hub

The automotive industry is both technology- and capital-intensive, with a complex and extensive value chain. At the core of its industry chain are vehicle manufacturers (OEMs) that source directly from Tier 1 suppliers (system suppliers), who in turn procure parts from Tier 2 suppliers (component manufacturers). With interconnected relationships and shared information systems across the supply chain, the auto industry has created a highly complex and closed ecosystem that can be challenging for new entrants to break into.

1. Upstream: This segment primarily focuses on auto electronics, industrial metals (e.g., steel and aluminum), and battery chemicals for electric vehicles (e.g., anodes and cathodes, electrolytes, and separators) for electric vehicles.

2. Midstream: This segment provides system integration designs to both internal combustion engine (ICE) and electric vehicle (EV) manufacturers. In the ICE vehicle sector, midstream suppliers focus on engine systems and transmission systems (such as gearboxes), which are core technologies for the sector. In the EV sector, midstream suppliers provide the three-electric systems (batteries, motors, and electronic control systems), which directly determine EV performance.

3. Downstream: This segment encompasses vehicle manufacturers (OEMs), as well as sales and after-sales service channels. Major OEMs are responsible for R&D and designing new vehicle models. OEMs include both traditional and EV brands. Dealerships serve as important sales channels, responsible for selling vehicles to customers and providing after-sales services. Additionally, the downstream segment also includes emerging business models like automotive finance, insurance, and car-sharing.