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Automotive parts manufacturers are currently facing a once-in-a-century period of major transformation. The four megatrends of CASE (Connected, Autonomous, Shared, and Electric) are shaking the industry to its core, and the EV (electric vehicle) shift is dramatically changing the structure of the entire supply chain.
Engines, transmissions, exhaust systems - many of the technologies developed during the internal combustion engine era are no longer needed, while new technological areas such as batteries, motors, and power electronics are rapidly emerging. Amid this seismic shift, the traditional framework of business relationships and ``keiretsu'' is beginning to crumble, and parts manufacturers are required to have the ability to prove the value of their own technology and develop new customers.
Its most powerful weapon ispatent. In this article, we will explain in detail from a patent attorney's perspective why auto parts manufacturers should obtain patents in the EV era, what areas they should aim for, and specific measures for a strategic intellectual property approach.
Table of Contents
1. Impact of EV shift on supply chain
The wave of EVs is not just about replacing powertrains. This is truly a ``disruptive transformation'' that will rebuild the entire supply chain of the automotive industry. Correctly understanding the nature of this change is the first step to a survival strategy.
1-1. Drastic reduction in internal combustion engine parts - from 30,000 to 20,000
An internal combustion engine vehicle (ICE) is made up of approximately 30,000 parts, but it is said that this number will be reduced to approximately 20,000 parts for an EV. Many parts categories are no longer needed, including the engine itself, transmission, fuel injection system, exhaust system parts, and parts of the cooling system.
Comparison of number of parts
Internal combustion engine vehicle (ICE): Approx. 30,000 points → EV: Approx. 20,000 points
This means that about 10,000 parts, or about one-third of the total parts, will be unnecessary. Thousands of engine-related parts alone will be lost, and suppliers involved will be forced to significantly downsize their existing businesses.
Although this change is gradual, it is accelerating. In Europe, a policy has been announced to effectively ban the sale of new ICE vehicles in 2035, and in China, the sales ratio of NEVs (new energy vehicles) is rapidly increasing. Japanese OEMs are also accelerating the EV shift, and it is no longer a ``fire on the other side'' for parts manufacturers.
1-2. Collapse of the 2 column - You can't survive on "social relationships"
The ``keiretsu transactions'' that have supported Japan's automobile industry have been the foundation for stable orders and quality improvements for many years. However, the EV shift is fundamentally shaking this structure.
Risk of series collapse
When developing EVs, OEMs are increasingly choosing suppliers with technological capabilities globally, without being bound by traditional affiliated companies. Emerging EV manufacturers such as Tesla and BYD do not have any affiliated companies from the beginning and deal directly with companies that have the most suitable technology. We are now in an era where existing business relationships alone are no longer sufficient to maintain orders.
In fact, there is a noticeable movement in the procurement departments of major OEMs to add "technical proposal capabilities" and "intellectual property portfolio" as important selection criteria. A situation is emerging where a salesperson at a parts manufacturer can no longer even bring the company to the table for business negotiations simply by saying, ``We are part of the ___ series.''
1-3. Converting to a proposal-based company is a survival condition
As the keiretsu framework fades, what is required of parts manufacturers is a shift from an order-based model where they ``make what they are told'' to a proposal-based model where they ``propose their own technology and create new value''.
In the world of EVs, there are many technical issues that are different from conventional ICE parts, such as battery thermal management, lightweight materials, and NVH (noise, vibration, and harshness) measures. Companies that can propose unique solutions to these issues will be the core of the new supply chain.
And supporting the proposal ispatent. Patents are more than just legal protection; they are the most convincing proof that we have a unique solution in this technology area.
ICE car vs EV: Comparison of main components
| Parts category | ICE car | EV | Influence |
|---|---|---|---|
| Engine body | Required | Not required | Significant reduction in related suppliers |
| Transmission | Required | Greatly simplified | No need for multi-stage gearbox |
| Fuel system | Required | Not required | Fuel pump/injection system disappears |
| Exhaust system | Required | Not required | Muffler/catalyst market disappears |
| Battery pack | Small | Large/core parts | Huge market for new entrants |
| Motor | Auxiliaries only | Main drive | Surge in demand for high-efficiency motors |
| Thermal management system | Engine cooling center | Battery temperature management | Technical requirements have changed significantly |
| Power electronics | Limited | Inverter etc. required | New semiconductor-related demand |
2. Why do auto parts manufacturers need patents now?
In the EV era, patents are more than just "legal protection of technology." It is a multifaceted weapon that supports business strategy itself. Here, we will explain four reasons why auto parts manufacturers should start acquiring patents now.
Reason 1: Become the most powerful sales tool
In developing new customers, patents are extremely effective as "objective proof of technological capabilities." By including the patent number and technology overview in sales materials, you can provide legal support for the claim that ``this is our unique technology.'' Particularly in business negotiations with overseas OEMs and emerging EV manufacturers, the presence or absence of a patent portfolio is often the deciding factor in whether or not they will listen to your story. By including patent information in your technical proposal, it will be much easier to gain trust at the first interview.
Patent is "the strongest business card"
In an era when affiliated companies no longer have the backing of a company, the fact that a company owns 0 patents is more persuasive than any sales pitch. Particularly in the global market, the presence or absence of patents is increasingly becoming a prerequisite for transactions. Patents are truly the most powerful business card.
Reason 2: Breaking away from price competition
Technologies protected by patents create "unique value" that cannot be easily imitated by other companies. This allows us to move away from negotiations that are solely focused on cost reduction pressure, and enable appropriate pricing based on the value of the technology. Without patents, no matter how good the technology is, there is an increased risk that competitors will imitate it and become embroiled in price competition. Building entry barriers through patents is a management strategy that is directly linked to securing profit margins.
Reason 3: Avoidance of infringement risk and negotiation power
In the EV field, companies from other industries are entering the field one after another, and the web of patents is rapidly spreading. Electronics manufacturers, chemical manufacturers, IT vendors, and others are actively filing patent applications, increasing the risk that auto parts manufacturers may unknowingly infringe on the patents of other companies. If your company owns a patent, you can use it as a card for cross-license negotiations in the unlikely event of a patent dispute. Building a patent portfolio is essential not only from an offensive but also a defensive perspective.
Reason 4: Admission ticket to open innovation
Technology development in the EV era is no longer something that can be completed by one company alone. Joint development and alliances with a variety of players such as OEMs, material manufacturers, electronic component manufacturers, and startups are essential. In order to participate in such open innovation forums, you need ``intellectual property that you can bring to the table''. Companies that do not have patents cannot be included in joint development frameworks - such a situation is actually occurring. Patents also serve as an "admission ticket" to technological collaboration.
3. Patent areas to target in the EV era
"I understand that patents are important, but what should I apply for?" - This is a question that many parts manufacturers have. In fact, many of the seeds of patents for the EV era lie hidden within the existing technologies cultivated during the ICE era.
3-1. Repurposing existing technology
Existing technology × new use = patent opportunity
Precision machining technology for engine parts is used in motor core manufacturing, exhaust system vibration control know-how is used in the acoustic design unique to EVs, and fuel system sealing technology is used in the waterproof and dustproof design of battery packs. There is a possibility of obtaining a patent as a "use invention," and this can be said to be a strategy to make the most of your company's technological assets.
3-2. Solving EV-specific issues (weight reduction, heat management, NVH)
Three major technical issues faced by EV
Weight reduction:To offset the weight of the battery, there is a strong need to reduce the overall weight of the vehicle body. The use of the right material in the right place for aluminum, CFRP, and high-strength steel, as well as multi-material joining technology, are promising areas for patents.
Thermal management:Battery temperature management affects performance, safety, and lifespan. Thermal management technology, including cooling plate design, heat pipe applications, and the use of phase change materials, is one of the most actively patented areas.
NVH Countermeasures:In EVs, which do not have engine noise, road noise and motor noise become noticeable, creating new quietness issues. Patent opportunities exist for technologies such as damping materials, sound insulation structures, and active noise control.
3-3. Manufacturing process innovation
"How to make" is also patented
Patents can be obtained not only for the product itself, but also forthe manufacturing method (process patent). Unique manufacturing processes that address the unique manufacturing challenges of EV components, such as battery cell stacking, high-precision motor core punching, dissimilar material bonding techniques, and in-line quality inspection methods, can be powerful patents. Although manufacturing process patents are difficult to discover from outside parties, they have great value as a source of ``prevention of know-how leakage'' and ``licensing income.''
EV challenges and examples of repurposing existing technologies
| EV side issues | Existing technology (derived from ICE) | Points for repurposing |
|---|---|---|
| Battery cooling | Engine cooling system flow path design | Method for achieving uniform temperature distribution |
| Car body weight reduction | Press forming of high strength steel plate | Both thinness and strength |
| Motor quietness | Exhaust system vibration and acoustic control | Resonant frequency control technology |
| Battery seal | Fuel system seal gasket | Waterproof construction for long-term durability |
| Motor core manufacturing | Precision metal processing/punching | Achieving high precision and high speed machining |
| Joining dissimilar materials | Welding/adhesion/fastening technology | Aluminum-steel/resin-metal bonding |
4. Practical method of strategic IP approach
Patents are not something that you just have to apply for. A strategic approach is essential to make the most of limited business resources. Here we introduce three intellectual property strategies that auto parts manufacturers should implement.
Strategy 1: Create a patent map and identify blank areas
The first thing you should do is create a patent map for your company's technology area. Visualize in which technology areas competitors, OEMs, and companies entering other industries are concentrating their patents, and identify white spaces. This blank space is an opportunity for your company to move forward and obtain a patent. Additionally, by understanding the patent networks of competitors, you can proactively avoid the risk that your own development policy will infringe on another company's patents. The patent map serves as a compass for both offensive and defensive intellectual property strategies.
Strategy 2: Open & Close Strategy
Not all technology needs to be covered by patents. Rather, it is important to strategically use techniques for disclosing information (open) and techniques for concealing information (closed). Technologies that aim to become industry standards should be made open to expand the market, while core technologies that are the source of a company's competitive advantage should be protected (with patents or know-how). By using them properly, you can maximize your company's profits while expanding the overall market pie.
Key points of open and close strategy
Open area:Interface specifications, connection standards, basic technology, etc. → Aiming to expand the market and become the de facto standard
Closed areas:Manufacturing know-how, material formulation, control algorithms, etc. → Build a competitive advantage that is difficult to imitate
If used incorrectly, there is a risk of important technology being leaked or, conversely, being isolated from the market. It is important to carefully design it in consultation with a patent attorney.
Strategy 3: Capture the global market with foreign applications
The EV market is expanding globally. It is essential to obtain patents not only in Japan but also in major markets such as China, Europe, and North America. In particular, China is the largest consumer region of the EV market, and without local characteristics, we will have no means of countering counterfeit products. By utilizing the PCT (International Patent Application) system, it is possible to apply to multiple countries with one application. However, due to differences in national examination practices, filing strategies must be customized for each country.
5. Why a patent attorney is essential
You may be thinking, "Why not just file patent applications in-house?" However, intellectual property strategies in the EV era have become increasingly complex, and the accompaniment of an expert patent attorney greatly influences the outcome.
Advantage 1: Discovering inventions and maximizing the scope of rights
There are many cases in which what is considered a ``common idea'' for engineers actually turns out to be an invention that can be patented. Patent attorneys uncover hidden inventions through interviews with engineers, and then file patent applications that maximize the scope of rights. If the scope of rights is too narrow, it will be easily avoided, and if it is too broad, it will be rejected during examination.A patent attorney's skill lies in striking this delicate balance.
Advantage 2: Intellectual property portfolio design linked to business strategy
Rather than filing individual patent applications separately, it is important to design them as anintellectual property portfolio that looks at the overall business strategy. A patent attorney will work backwards from your business goals to advise you on which technical areas you should concentrate on applying for, in what order you should apply, and in which countries you should expand your business. This allows IP investments to achieve maximum impact with limited budgets.
Benefit 3: Risk management and conflict response
Risk management related to intellectual property, such as investigation of the risk of infringement of other companies' patents (clearance investigation), consideration of patent invalidation, and support for license negotiations, is a specialty of patent attorneys. In the EV field, patents from different industries are increasing, and there are many cases where conventional common sense in the automobile industry does not apply. Without the knowledge of experts, there is a high risk of being involved in unexpected patent disputes.
Summary
The major transformation of the automobile industry due to the shift to EVs is both a crisis and a great opportunity for parts manufacturers. Because we live in an era where we can no longer rely on affiliated companies, we need to prove the value of our own technology through patents and open up new markets.
The technology cultivated during the ICE era will never go to waste. Converting existing technology assets to patents for the EV era - converting them into applications, solving problems, and innovating manufacturing processes - creates new competitive advantages. In order to implement this strategy to the fullest extent, collaboration with a patent attorney is essential.
Let's turn this once-in-a-century period of change into an opportunity for rapid growth. First, please consult with a patent expert to take an inventory of your company's technology.
Intellectual property strategy in the EV era, start with a free consultation
We will help you transform your company's technological assets into patents for the EV era.
A patent attorney will directly interview you and propose the optimal intellectual property strategy.
Automotive parts manufacturer
EV
Electric car
Patent
Intellectual property strategy
Supply chain
CASE
Patent attorney
AUTHOR
Takefumi SUGIURA （杉浦 健文）
EVORIX Intellectual Property Law Firm Managing Patent Attorney
Supports clients across IT, manufacturing, startups, fashion, and medical industries, covering patent, trademark, design, and copyright filings through trials and infringement litigation. Specialized in IP strategy for AI, IoT, Web3, and FinTech. Member of the Japan Patent Attorneys Association (JPAA), Asian Patent Attorneys Association (APAA), and Japan Trademark Association (JTA).
