Bernd Stephan, president of SKF Automotive, said that although sales of electric vehicles in Europe are also increasing, sales of electric vehicles in China are increasing. "We have gained a lot of new business in this area... so many projects have come out of the blue and we are constantly talking to these customers," Stephan said. Electric vehicles have a huge impact on bearing manufacturers because the number of bearings normally used in electric vehicles is approximately half the number of bearings used in internal combustion engine vehicles. While SKF focuses on components such as bearings and seals, competitors including the Schaeffler Group in Germany are developing a complete range of electric drive products. Since only 4% of SKF's products are used in internal combustion engines, and wheel bearings are the most sold products, SKF is largely protected. “Our business lost in the internal combustion engine market is winning back in the electric vehicle market,†said Stephan. The emergence of more hybrid vehicles in between is also beneficial to us. The increasingly fierce competition in the automotive bearing market, the increasing sensitivity of customers to prices, and the rise of Chinese competitors have made people increasingly concerned about SKF’s long-term profitability. Stephan said that SKF can use more economical steel and different components to reduce the manufacturing costs of non-high-end bearings. "Our productivity is very high and we don't only produce bearings in Europe." The SKF auto business also competes with Japanese companies such as NTN, NSK, and JTEKT, as well as Chinese companies such as the Group. Its sales accounted for 31% of SKF's 2017 sales. Although the auto business has always been a concern for the group, the 2015 reorganization plan has begun to play its role. In the first quarter of 2018, it almost achieved an 8% profit target. The reorganization plan is mainly for highly customized bearings and seals. Looking ahead to the future of the complete driverless car market, Stephan believes that this will bring more changes, due to the increased use of hub bearings, wheel bearings may need to have a longer life. “Now people still don't realize that drone means anything. In theory, the number of vehicles will be reduced to one-third of what they are now.†Stephan added, it is very important to prepare for this now.
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SKF Wheel
SKF Efforts to Increase Electric Vehicle Market Profit in the First Quarter of 2018
Thanks to the increase in demand for electric vehicles and the adaptation of suppliers to rapidly changing automotive technologies, China's demand for SKF bearings from Sweden is increasing. Currently, SKF orders at least one new order per month.