(Reuters) – Auto parts supplier BorgWarner on Tuesday forecast its electrified-vehicle business would generate about half of its total expected sales of over $10 billion by 2027, as the company looks to tap strong demand for cleaner modes of transport.
It also expects the eProducts segment, which makes parts for EVs and hybrids, to bring in revenues of $2.3 billion to $2.6 billion for 2023 and grow to $5.6 billion in 2025.
“EV-focused M&A is tracking ahead of plan,” the company said ahead of an investor meeting.
Michigan-based BorgWarner has over the past two years sharpened its efforts to become an EV supplier, snapping up five companies and spinning off its fuel systems and aftermarket segments into a separate firm.
Its clients – Volkswagen, General Motors and Ford – have also been trying to roll out more electrified models.
In its most recent quarter, BorgWarner posted lower-than-expected adjusted earnings as supply chain constraints continued to be a headwind.
(Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath)
