Global Automotive Retrofit Electric Vehicle Powertrain Market 2025 – 2034

As per the Automotive Retrofit Electric Vehicle Powertrain Market analysis conducted by the CMI Research Team, the global automotive retrofit electric vehicle powertrain market is expected to record a CAGR of 7.56% from 2025 to 2034. In 2025, the market size will be USD 74.10 Billion. By 2034, the valuation is anticipated to reach USD 142.47 Billion.

Automotive Retrofit Electric Vehicle Powertrain Market Overview

The global automotive retrofit electric vehicle powertrain market is poised to witness a noticeable growth during the forecast period owing to several factors inclusive of rising demand for retrofit electrification fittings and electric vehicles. Besides, the benefits provided by EVs over traditional petrol- and diesel-driven automobiles have escalated demand for such systems.

Electric powertrain implies an electrical circuit comprising traction motors. It encompasses the electric energy conversion system REESS, the coupling system to charge the REESS, electronic converters, and respective electric connectors & wiring harnesses. REESS means ‘rechargeable Electrical Energy Storage System’, i.e., a rechargeable energy storage system used for generating electric energy for electric propulsion.

Research states that the automotive sector results in more than 16.0% of the global emissions. This has, in fact, increased the requirement of minimizing carbon footprint at the global level in every possible way. The International Energy Agency claims that the automotive segment, on the whole, will be running on electrical energy by the end of the year 2050.

Automotive Retrofit Electric Powertrain Market Key Growth Drivers

• Increase in Sales of Vehicles: The electric car market is being driven by a rise in the sales of vehicles at the global level. The automotive retrofit electric vehicle powertrain market is likely to grow as an outcome placed by car manufacturers on the conversion of older automobiles into EVs. Adopting multiple emission-related regulations and norms is projected to drive the demand for automotive retrofit electric vehicle powertrains. The demand for automatic transmissions in the vehicles for increasing driving comfort is accelerating the market pertaining to automotive retrofit electric vehicles. Retrofit EVs do not require gears. They are thus expected to be one of the practical choices for realizing the focus of the major nations on creating pollution-free smart cities. As per the International Energy Agency, the year 2023 witnessed an increase in sales of EVs by 35% as compared to 2022.

• Advancements in Lithium Battery Technology: Improvements in lithium battery technology have reduced the cost of EV batteries by 90%, thereby increasing range, affordability, and comfort on the part of EVs. As per BNEF’s survey for the year 2020, the price of an average automotive battery declined by 13%. The consumer preference for electric mobility alternatives has risen as an outcome of ongoing increases in prices of fuel along with environmental concerns. As such, automakers are emphasizing the development of e-powertrain options that happen to be compact, lightweight, and well-suited for daily commuting. The affordability is expected to drive the automotive retrofit electric vehicle powertrain market in the forecast period.

Automotive Retrofit Electric Vehicle Powertrain Market Key Threats

• Limited EV Charging Facilities: Various economies are into the installation of EV charging stations. Still, many other economies are struggling to meet the essential number of installations. As such, this results in lowering the number of people making use of electric cars. Going by the chain reaction, the lower number of users translates into less revenue generation, as there would not be many vehicles wherein automotive retrofitting could be done.

Automotive Retrofit Electric Vehicle Powertrain Market Opportunities

• Government Initiatives: The quality of air is deteriorating with the rise in emissions of particulate matter from the cars. This, in turn, adversely affects the environment as well as living beings. The governments across the globe have mandated strict emission standards for the makers of cars. As an outcome, the manufacturers have been forced to invest highly in research & development activities regarding electric cars with the objective of providing consumers a cost-effective alternative. The governments have also devised various incentives regarding acceptance of electric cars at the global level. Some of them are inclusive of free transportation to main commercial districts of vital urban regions, sponsorships and payback offered while buying electric cars, free street use owing to specific street pricing/toll-free zones, and waiver of enrollment fees and tolls. Various business owners are giving a second thought to switching to electric vehicles to take advantage of such benefits. Retrofitting is one of those clever approaches for the people to switch to EVs.

What’s trending in Automotive Retrofit Electric Vehicle Powertrain Market?

• The governments across the globe are increasingly incorporating regulations and doling out incentives for promoting adoption of EVs. They are helping with the expansion of charging infrastructure (both – home-based and public), thereby rendering EVs more practical and accessible.

• Progress with respect to energy density, battery chemistry, and charging times is improving the range and overall performance of EVs.

• With the reduction in prices of EV powertrains, retrofitting becomes an affordable option for the vehicle owners.

• Emerging economies are witnessing a robust growth in the sales of EVs, with a rise in rates of adoption in regions such as Africa, Asia Pacific, and Latin America.

Automotive Retrofit Electric Vehicle Powertrain Market Category Wise Insights

By Component Type

• Inclusive Conversion Kit: An inclusive EV conversion kit with regard to automotive retrofitting implies a complete package that transforms a conventional gasoline-powered vehicle into an electric one. Such kits are designed such that they are adaptable to several types of vehicles and inclusive of all the essential components needed for conversion. The basic components of an inclusive conversion kit include an electric motor (replacing the IC engine, thereby providing electric drive), power electronics (controlling and managing the flow of electricity inclusive of converters and inverters), a battery pack (storing and providing electrical energy for the motor), charging infrastructure (allowing the vehicle to be charged), and optical components (encompassing a battery management system (BMS), cooling systems, and various other accessories based on the specific vehicle and kit).

• Electric Motor: An electric motor is one of the key components of a powertrain. It holds the responsibility of converting electrical energy into mechanical energy in order to drive wheels. This process is more efficient and simpler as compared to the conventional ICE powertrain. The electric motor, in unison with the other components such as controllers, batteries, and probably a transmission, does form an EV powertrain. Retrofitting does transform a vehicle into a 100% electric one, thereby eliminating the requirement for fuel and curtailing emissions.

• Battery: The battery is one of the critical components with regard to automotive retrofit electric vehicle (EV) powertrains, as it serves as a power source as well as an energy storage source for the electric motor. EV retrofitting means converting the gasoline-powered vehicles to electric by replacing the ICE with an electric motor as well as a battery pack.

• Controller: The controller, better known as the vehicle control unit (VCU) or motor control unit (MCU), plays a vital role in the management of the flow of electricity and exercising control over the motor’s speed, direction, and torque. The control is an interface between the motor, battery, and control systems, thereby ascertaining smooth and efficient operation. Apart from DC-AC conversion and regulation of power flow, regenerative braking is a function executed by the controller, wherein the motor acts as a generator during deceleration, thereby converting the kinetic energy back into electric energy for recharging the battery.

• Charger: A charger in an automotive retrofit electric vehicle (EV) falls in the category of on-board charger, which means that it is installed within the vehicle and helps in the conversion of AC power into DC power for charging the high-voltage battery. The absence of a charger would make the EV devoid of storage of energy from external sources, thereby confining it to run on electricity.

• Others: The others include an axle and a converter. Axle plays the role of the central shaft that rotates the wheels, whereas the converter, usually a DC-DC converter, does adjust voltage levels required by the electric motor. Axle does transmit torque generated by the electric motor to the wheels, thereby facilitating the movement of the vehicle. In certain EV retrofit kits there is an e-axle, an integrated system combining electric motor, power electronics, and transmission into a single unit. DC-DC converter is necessary in the EV powertrains to convert DC voltage from the battery to the voltage needed by the electric motor.

By Vehicle Type

• Two Wheelers: Retrofitting the electric powertrains into the existing ICE two wheelers implies their conversion to electric vehicles. The process is environmentally advantageous as well as cost-effective in comparison with replacement of the entire vehicle. It means replacement of ICE and related components with a battery, an electric motor, and the other essential systems.

• Passenger Vehicle: Retrofitting an electric powertrain into a passenger vehicle (hatchback, sedan, or utility vehicle) implies replacement of the existing ICE and components concerned with a novel electric powertrain. The process does transform a fossil fuel vehicle into an EV or a hybrid electric vehicle (HEV), based on whether conversion is partial or complete.

• Commercial Vehicle: Commercial vehicles are classified into Heavy Commercial Vehicles (HCVs) and Light Commercial Vehicles (LCVs) on the basis of their intended use and payload capacity. The demand for automotive retrofitting herein is driven by the need to reduce carbon footprint. Retrofitting offers advantages such as suitability for operation in sensitive environments and reduction in noise pollution.

By Electric Vehicle Type

• All Electric Vehicle Batteries: The automotive retrofit electric vehicle powertrain market emphasizes conversion of existing vehicles into electric powertrains. The batteries commonly used include lead acid and nickel-metal hydride. Lithium-ion batteries are in use owing to higher energy density coupled with a longer lifespan. On the other hand, nickel-metal hydride batteries prove to be a better alternative due to less pollution. Lead acid batteries, in spite of being less energy-dense, are used in certain applications, especially for smaller vehicles or as part of hybrid systems.

• Plug-in Hybrid Vehicle: The plug-in hybrid electric vehicles (PHEVs) are among the growing parts of the automotive retrofit electric vehicle powertrain market. This growth is driven by awareness pertaining to safeguarding the environment, incentives by the governments, and growing interest of the consumers in sustainable vehicles.

• Hybrid Vehicle: Hybrid vehicles form a significant portion of the automotive retrofit electric vehicle powertrain market. The driving factors include government regulations, environmental concerns, and increasing interest of consumers in hybrid vehicles. Enhancements in battery technology coupled with the efficiency of electric motors is another factor accelerating the market.

How’s automotive retrofitting concerned with passenger safety?

Electric vehicles’ automotive retrofitting impacts passenger safety on a significant note owing to the original design as well as components of vehicles getting modified. Ascertaining the safety of passengers during retrofitting implies meticulous checks inclusive of chassis integrity, functional components such as steering and brakes, and installation of novel electric powertrain components. Such measures aim toward maintaining or enhancing the safety performance of vehicles along with addressing potential risks linked with the conversion process.

At the same time, the fact that retrofitting can comprise technical challenges, particularly while dealing with integrating new electric components, can’t be ignored. Improper retrofitting could potentially result in issues related to safety, thereby highlighting the vitality of thorough inspections and qualified technicians. Changes in regulatory frameworks could also present challenges toward retrofitting, thereby necessitating adaptations and updates on a continual basis.

Report Scope

Automotive Retrofit Electric Vehicle Powertrain Market Regional Perspective

The automotive retrofit electric vehicle powertrain market is classified into North America, Europe, Asia Pacific, and LAMEA.

• Asia Pacific: The Asia Pacific leads the automotive retrofit electric vehicle powertrain market. This could be attributed to numerous legislative initiatives undertaken, which encourage buying EVs in economies like China. The partnerships amongst key players for creating charging infrastructure are also helping in the expansion of the market herein. For instance, Didi Chuxing has recently partnered with BP to build EV charging stations all across China. Lithium deposits in this country are further encouraging investments in the battery industry. Tesla has also come up with the Model 3 with a noticeable decrease in prices as an outcome of conducive government measures in South Korea. As per the Guide to Chinese Climate Policy 2022, numerous Chinese cities do impose license plate-based driving bans on passenger cars on exclusive days but do not apply them to electric cars. As per Trading Economics, the transportation landscape in Japan had witnessed a growth of 153 million in the year 2023 (it was 134 million in 2021).

• Europe: Europe is expected to expand in the automotive retrofit electric vehicle powertrain market in the forecast period. This could be attributed to the mandate laid down by the governments that each and every auto manufacturer should abide by the laws regarding emissions of carbon for the automobiles that are newly registered. Plus, adopting e-mobility and resistance to transportation powered by ICEs are increasing.

• North America: North America is expected to witness steadiness in the automotive retrofit electric powertrain market in the forecast period. However, in coastal areas, preference for electric vehicle powertrains is expected to increase, as U.S. consumers are opting for bigger cars to drive longer distances.

• LAMEA: The market for automotive retrofit electric vehicle powertrain market in LAMEA is at a nascent stage as of now but is expected to enter the mainstream during the forecast period, with Brazil and Argentina ruling the roost.

Automotive Retrofit Electric Vehicle Market News Key Developments

The automotive retrofit electric vehicle powertrain market is witnessing a non-taciturn disruption with respect to organic as well as inorganic growth. Some of the developments include –

• In July 2021, Mercedes Benz, a German carmaker, announced that it would buy YASA (one of the providers of next-generation electric propulsion technology). This business makes way for automobile sector solutions for hybrid and electric powertrains. As of now, YASA continues functioning as a Mercedes Benz 100%-owned subsidiary.

• In July 2021, LG Electronics collaborated with Magna International to develop electric vehicles (EVs). This transaction contract implied employing 1000 people initially with the location being Incheon (South Korea).

• In July 2021, Hyliion (supplier of electric power trains) signed a deal with FEV (specialist in automotive and powertrain development of hardware and software). The alliance, for class-8 tractor-trailer applications, is expected to aid the production, architecture, integration, and manufacturing validation of Electric Range extender (ERE).

• In June 2021, Xos Inc. launched a novel powertrain division with the objective of creating commercial vehicles based on its own X platform and X-pack through expanding the OEM segment. It does work in collaboration with its loyal and new clients.

Automotive Retrofit Electric Vehicle Powertrain Market Competitive Landscape

The automotive retrofit electric vehicle powertrain market is highly competitive, with a large number of product providers globally. Some of the key players in the market include:

• ALTIGREEN
• Bharat Mobi
• Continental AG
• Delphi Technologies
• ETrio EV Europe
• Folks Motor
• Hitachi Astemo Ltd.
• Johnson Electric Holdings Ltd.
• Loop Moto
• Magna International Inc.
• Mando Corporation
• Mitsubishi Electric
• Rexnamo Electro Pvt Ltd.
• Robert Bosch GmbH
• Transition One
• VerdeMobility
• XL Fleet
• Others

These firms apply a sequence of strategies to enter the market, including innovations, mergers and acquisitions, as well as collaboration.

The global automotive retrofit electric vehicle powertrain market is shaped by the presence of diversified players that compete based on product innovation, regional reach, vertical integration, and cost efficiency.

The Automotive Retrofit Electric Vehicle Powertrain Market is segmented as follows:

By Component Type 

• Inclusive Conversion Kit
• Electric Motor
• Battery
• Controller
• Charger
• Others (Axle, Converter, etc.)

By Vehicle Type

• Two Wheelers
• Passenger Vehicle (Hatchback, Sedan and Utility Vehicle)
• Commercial Vehicle (Light Commercial Vehicle and Heavy Commercial Vehicle)

By Electric Vehicle Type

• All Electric Vehicle Battery
• Plug-in Hybrid Vehicle
• Hybrid Vehicle

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America