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ICE to EV Transition Readiness Assessment for Tier 1 and Tier 2 Suppliers

Suppliers of combustion engine and transmission parts face a shrinking base in some segments and a growing set of EV and hybrid opportunities. This assessment scores ten areas that decide whether you can win and run that new work.

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1. How much of your current revenue depends on parts specific to combustion engines or transmissions?

For example pistons, valves, fuel system parts, exhaust parts.

2. Have you mapped which of your processes are reusable in EV parts?

Examples: machining, stamping, casting, forging, assembly, plastics.

3. How many active EV or hybrid quotes or programs do you have?

4. Do your quality system and certificates meet what EV customers ask for?

IATF 16949, customer specific requirements, special process assessments, functional safety awareness.

5. How well do you understand EV-specific part requirements such as tight tolerances, cleanliness and thermal performance?

6. Can your plant add capacity or retool for new products without large disruption?

7. How would you describe your cost visibility for new products?

Cost per part by routing, scrap, tooling amortisation and overhead.

8. How ready is your ERP and data for a high-mix launch with frequent engineering changes?

9. Do you have people with EV or electronics product experience?

10. Do you have a funded plan for your transition that leadership has approved?

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How to use the assessment

Answer each of the ten questions as the business is today, not as planned. Involve sales, engineering, quality and operations, because each sees different gaps. The score gives a percentage and a band with specific next steps. Repeat the assessment every six months and compare, since the value comes from seeing which areas improve. Use the result as an input to a workshop, not as a verdict.

What the questions cover

The questions cover revenue dependence on combustion-only parts, reusable processes, pipeline of EV and hybrid quotes, quality system and certificates, understanding of EV part requirements, capacity and flexibility, cost visibility, ERP and data readiness, people experience, and a funded plan. They are deliberately practical, because most transitions stall on cost data, capacity or quoting discipline rather than on technology.

Market: revenue exposure and customer pipeline
Capability: processes, quality and skills
Operations: capacity, cost data and ERP

Reading the bands

Early stage means start with a map of reusable processes and basic fixes. Building foundations means target a few parts and prove capability. Ready to compete means focus on winning programs while protecting launch quality. Transition under way means the main risk is running several launches at once. Whatever the band, protect existing combustion-related cash flow, since it funds the move.

Common mistakes

Do not chase every EV part. Parts like battery enclosures, busbars, cooling plates, motor housings and electronics housings suit some processes, and not others. Do not quote without actual cost data. And do not rely on a single customer program. Diversify across more than one OEM or tier 1 where you can, and keep an eye on program timing changes, which have shifted often.

Frequently Asked Questions

Which parts are the best fit for ICE suppliers moving to EV?

It depends on process capability. Machined housings, castings, stampings, busbars, cooling parts and precision components often carry over, while parts tied to fuel, exhaust or multi-speed gearboxes face lower demand. Match your processes to parts rather than chasing headlines.

How often should I repeat this assessment?

Every six months is reasonable, or after a major event such as winning a program or losing a customer. Compare answers over time and keep a record of the actions agreed after each round.

Does this assessment predict success?

No. It highlights readiness gaps from your own answers. Success also depends on market timing, customer decisions and execution. Treat the score as a conversation starter and tailor actions to your plant.

Why does ERP readiness matter for EV work?

New programs mean new part numbers, frequent engineering changes and tight launch tracking. If item master, BOM and routing data are unreliable, quoting and planning errors multiply. Reliable data is a practical requirement before launch.

If cost, routing and quality data in your ERP is not yet reliable enough for fast quoting, Netray can discuss where a private assistant could help.

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