New Delhi, May 5 -- The ongoing transition to electric vehicles (EVs) is expected to reshape the auto component industry by increasing content per vehicle and creating new avenues for suppliers, according to a recent report by Ambit Capital.

However, it also highlighted that while the rise of EVs poses a threat to manufacturers dependent on internal combustion engine (ICE) components, it also unlocks significant growth opportunities.

The report said "While EV disruption poses existential risk for the suppliers of ICE-dependent components, it opens up several opportunities for the component suppliers to provide a) EV components like li-ion batteries, traction motors, controllers, BMS etc"

It added that the component makers can diversify...