Electric Coolant Pumps Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Every organization and its procurement team look forward to negotiating the best deal while procuring a set of products or subscribing to services. Rate benchmarking involves price/cost comparison of more than one set of products/services to analyze the most efficient combination that can potentially help the procurement team in getting the optimum rate.

The geographical location, scale of business, transportation and logistics, type of business, and order volumes play a vital factor in analyzing the rate benchmarking of the electric coolant pumps category.

Geographical considerations can affect prices by impacting local costs associated with conducting business, such as the cost of labor, the cost of raw materials, and manufacturing activity. China is one of the largest automotive manufacturing country and accounts for almost 30 – 32% of the global vehicle production, which exceeds Europe, the U.S., and Japan combined. As of May 2023, industry leaders are investing heavily in both newly founded car OEMs and state-owned automotive enterprises in China. The labor force in China is also among the largest in the world. Hence, the cost of labor in China is significantly lower than in the U.S. and Europe. For instance, in China, the salary of automotive engineers is around USD 20 – 30 per hour compared to automotive engineers in the U.S., where it is around USD 50 – 70 per hour. In China, the wide presence of automotive parts suppliers also brings down the cost of e-pump production.

Similarly, in terms of transportation and logistics, the demand is presently stable and there are no supply chain issues when shipping from China to the majority of areas (as of July 2023). The most affordable rates for transporting 20-foot FCL containers from China to North America include the following: Rates from Shanghai to Los Angeles start around USD 1,100 and from Yatian to Prince Rupert, it starts from around USD 900 (as of July 2023).

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Labor cost is one of the key components of the total incurred costs while offering a product or service. Therefore, an organization must decide on whether the focus category should be retained in-house or outsourced if the organization is providing its products or services at competitive prices. If the organization decides in favor of outsourcing, it must understand the difference in the salary structures of suppliers before selecting a supplier and formulating a negotiation strategy.

According to our research, product design engineers at MAHLE and Hitachi receive a 15 - 25% higher base salary compared to the salary received by product design engineers working in companies such as Hanon Systems and Rheinmetall AG. However, the year-on-year increment rate in all these companies majorly depends on the Key Result Areas (KRAs).

Organizations may find it cumbersome to continuously track all the latest developments in their supplier landscape. Outsourcing the activities related to gathering intelligence allows organizations to focus on their core offerings. At this juncture, our newsletter service can help organizations stay updated with the latest developments and innovations and subsequently assist in preventing disruptions in the supply chain. We have identified the following developments within the electric coolant pumps category over the last two years:

• In June 2023, Rheinmetall AG secured a two-digit euro million contract for CWA2000 electric coolant pumps from one of the largest automotive companies. The pump is to be used in the latter’s 800V architecture. The pump manufacturing is estimated to start in 2026 with the arrangement of deliveries slotted over a six-year period.

• In October 2022, Sanhua Automotive opened its new production facilities in Mexico. The company's Mexico Campus, located in Ramos Arizpe, Coahuila, houses the microchannel, automobile, and controller business segments. Additionally, the campus provides services for production, laboratories, logistics, and warehouses.

• In August 2022, Industrie Saleri Italo S.p.A in collaboration with Cooper Standard declared to create a powerful coolant fluid management device for electric vehicles. The pumps will be compact in size and have advanced fluid control along with routing and connection technologies.

• In September 2021, a contract was won by Rheinmetall for the manufacture of CWA400 electric coolant pumps for hybrid drives, which will be used in luxury hybrid vehicles powered by 2.5-liter four-cylinder engines. The parts were manufactured at the company's Hartha, Saxony plant and were created by Rheinmetall subsidiary Pierburg Pump Technology GmbH.

• In August 2021, Toyota launched its new Aqua vehicle, featuring AISIN Corporation's new electric water pump. With the introduction of a new electric water pump and shift-by-wire transmission, the cooling efficiency is enhanced.