ABSTRACT
Global emissions legislation is becoming increasingly stringent and challenging for both original equipment manufacturers (OEMs) and Tier 1 suppliers. The importance of tightened emissions standards is essential as the automotive industry moves towards zero emissions. In Europe, legislation has become complex in recent years with the introduction of Real Driving Emissions (RDE) and World Harmonized Light Vehicle Test Procedure (WLTP). The next round of emissions standards, likely to be called Euro 7, is expected to be implemented in 2024-25. In addition to Europe, Brazil, China, and India will all introduce new tighter emissions standards in the next few years.
Within this paper, IHS Markit explores global legislation and the key technologies OEMs will require to be tailpipe compliant to aide them with strategy and supply decisions. 48V architecture is increasing in usage which is enabling an increase in demand for some existing technologies, particularly e-cat technology in the exhaust aftertreatment.
On top of the emissions challenges, the automotive supply chain faces further uncertainties with ever-changing consumer demands and with the political outlook in Europe and the rest of the world.
