“Rising Demand for Automotive Gears Due to Increasing Global Vehicle Production and Electrification”
- The sustained growth in global automobile production, especially in emerging economies like India, China, and Mexico, is significantly driving the demand for automotive gears. These components are essential for power transmission and performance optimization across both conventional and electric drivetrains.
- For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), global car production increased by 5% in 2023, with Asia-Pacific contributing the highest volume. This rise in vehicle output has a direct correlation with the demand for high-performance gear systems in the industry.
- The surge in electric vehicle (EV) adoption further amplifies this trend. EVs require precision-engineered gears for smooth power delivery, reduced noise, and increased torque handling. Manufacturers are therefore investing in custom gear solutions designed for electric drivetrains.
- A notable example includes ZF Friedrichshafen AG’s introduction of new e-drive gearboxes in 2024, specifically engineered for battery electric vehicles, supporting the industry's transition toward sustainable mobility.
