The automotive industry is entering a defining phase of transformation
The automotive industry is entering a defining phase of transformation. Electrification is no longer limited to battery-powered drivetrains but is increasingly encompassing an expanding ecosystem of hybrid systems, hydrogen fuel cells, advanced semiconductors, modular software platforms, and new manufacturing concepts. Across every major region, OEMs and suppliers are investing heavily in next-generation powertrain systems that promise greater efficiency, sustainability, and scalability
From BMW’s multi-energy vehicle strategy and Nissan’s hybrid engine breakthroughs, to Infineon’s semiconductor advancements, Volkswagen and XPENG’s E/E architecture collaboration, and Ford’s new EV platform, the trajectory is clear: innovation in EV powertrains now extends beyond propulsion to include energy management, digitalisation, and intelligent software integration.
A TECH-OPEN STRATEGY
The BMW Group has taken a unique approach to electrification with its announcement of the new BMW X5, which will be available with five different drivetrain technologies: battery-electric, plug-in hybrid, petrol, diesel, and hydrogen fuel cell. This marks the industry’s first production vehicle designed to accommodate such a wide range of powertrains on a single platform.
BMW’s strategy reflects what it calls a technology-open approach, recognising that diverse regional markets and customer needs will require different solutions for decarbonisation. “By launching the new BMW X5 with a choice of five drive system variants, we are once again demonstrating our leading position as a technology pioneer,” says Joachim Post, BMW board member for development.
At the core of BMW’s hydrogen program is the iX5 Hydrogen, developed in partnership with Toyota Motor Corporation. Its third-generation fuel cell system is more compact, efficient, and powerful, achieving higher output while reducing energy consumption. Hydrogen storage and balance-of-plant components are integrated in BMW’s Munich and Landshut facilities, demonstrating the company’s extremely deep manufacturing flexibility.
Beyond the vehicle itself, BMW is addressing the infrastructure challenge through the HyMoS (Hydrogen Mobility at Scale) initiative. In collaboration with industry partners, HyMoS aims to establish hydrogen ecosystems and refuelling stations in metropolitan areas, pooling demand from commercial fleets and passenger vehicles to enhance the economic viability of hydrogen mobility. The first pilot is already underway in Germany and France, paving the way for broader deployment in Europe.
COLD-SPRAY TECH
In Japan, Nissan has achieved a world first by applying cold spray technology to the valve seats of its new 1.5-litre turbocharged generator engine, developed exclusively for the third-generation e-POWER hybrid powertrain. The innovation enables superior combustion efficiency and reduced component mass, while enhancing heat dissipation and durability.
Cold spray is an additive manufacturing process that deposits metallic powders at supersonic velocity without melting the substrate. This eliminates traditional press-fitted valve seats, allowing engineers to optimise intake port geometry for improved airflow and “tumble” motion – a critical factor in achieving the engine’s 42% thermal efficiency under Nissan’s STARC 2 concept.
The new ZR15DDTe engine serves as a power generator within Nissan’s e-POWER system, which drives the wheels exclusively through an electric motor. The engine’s only role is to produce electricity, providing the seamless feel of an EV without requiring external charging. The powertrain integrates a compact 5-in-1 modular electric unit, combining the inverter, reducer, motor, generator, and increaser into a lighter and more efficient package.
This approach represents an innovative middle ground between full electrification and conventional hybrid systems, combining electric drive with optimised combustion for extended range and reduced emissions. The technology will debut in the Qashqai and expand to models such as the Rogue and Elgrand from 2026.
FRESH PLATFORM THINKING
In the US, Ford Motor Company is executing a $5 billion investment plan to develop a Universal EV Platform and Universal EV Production System, introducing a scalable foundation for its next generation of affordable electric vehicles.
The first model, a mid-size electric pickup truck, will launch in 2027 from the Louisville Assembly Plant. Designed to be “as fast as a Mustang EcoBoost” and priced around $30,000, the truck aims to democratise electric mobility in the highly competitive midsize segment. The Universal EV Platform allows Ford to produce a family of vehicles that share structural components, power electronics, and battery systems – supporting rapid development cycles and OTA (over-the-air) software updates. The Universal EV Production System, meanwhile, reimagines assembly line operations with modular subassemblies, digital twins, and automated quality assurance for speed and safety.
This integrated ecosystem positions Ford to compete directly with lower-cost EV entrants while maintaining domestic manufacturing leadership. The company is also investing heavily in BlueOval Battery Park Michigan, where it will produce advanced prismatic LFP (lithium iron phosphate) batteries at scale, reducing dependence on imported materials.
SEMICONDUCTORS DRIVE EFFICIENCY
No electric powertrain can achieve high efficiency without advanced semiconductor components. Recognising this, Infineon Technologies AG has expanded its OptiMOS 6 portfolio with a new family of automotive-grade 150 V MOSFETs, addressing the growing demand for high-performance power conversion in EV and hybrid systems. These components are optimised for HV/LV DC/DC converters, traction inverters for electric two-wheelers, and auxiliary power systems in passenger EVs. With RDS(on) values as low as 2.5mΩ and thermal resistance down to 0.4kW, the new MOSFETs deliver exceptional conduction efficiency and heat dissipation, enabling designers to reduce cooling requirements and system cost.
Available in TOLL, TOLG, and TOLT packages, the devices offer design flexibility across compact and thermally constrained environments. The TOLT variant, featuring top-side cooling, is especially suited to high-frequency switching applications such as compact traction inverters. All devices meet AEC-Q101 and PPAP standards, ensuring qualification for high-volume automotive use. Infineon’s expansion underscores how power electronics are becoming a critical lever in improving energy conversion and extending driving range in next-generation EVs.
UNIFYING E/E ARCHITECTURES
In China, XPENG and the Volkswagen Group have advanced their strategic partnership by entering an expanded agreement to co-develop an Electrical/Electronic (E/E) Architecture for cross-platform applications. Initially created for EVs, the system will now be extended to Volkswagen’s internal combustion and plug-in hybrid platforms in China.
The collaboration accelerates the Group’s software-defined vehicle (SDV) roadmap, enabling unified data, faster software iteration, and OTA update capabilities across vehicle types. The cross-powertrain ‘platformisation’ of the E/E Architecture not only reduces development time but also improves cost efficiency through shared hardware modules and standardised communication protocols.
Volkswagen executives describe this as a major step toward integrating combustion and EV architectures under one digital backbone. Ralf Brandstätter, CEO of Volkswagen Group China, explains: “By extending the China Electronic Architecture to our combustion engine fleet, we’re strengthening our technological leadership and reducing our cost base – ensuring competitiveness in China’s intensely dynamic market.”
For XPENG, the partnership deepens its role as a software and systems innovator, reinforcing its position as a strategic technology supplier for global OEMs.
SOFTWARE-DEFINED POWERTRAINS
As vehicles become more like rolling computers, the software layer of the powertrain is emerging as a primary differentiator. To that end, Elektrobit and Foxconn have entered a joint development agreement to create EV.OS, a modular, AI-centric operating system designed to power the next generation of software-defined electric vehicles.
The platform combines Elektrobit’s embedded software expertise with Foxconn’s hardware integration capabilities to create an end-to-end EV ecosystem, including a reference E/E architecture (EV.EEA), a standardised vehicle operating system, and an application layer for third-party developers. EV.OS supports real-time ECU management, service-oriented architectures, and a semantic vehicle API that enables flexible software updates across functional domains from energy management and charging to autonomous functions. The project is supported by a CI/CT/CD toolchain (continuous integration, testing, and deployment) and a Level 3 virtualised development environment to accelerate validation and rollout.
“By combining Elektrobit’s software expertise with Foxconn’s manufacturing innovation, we’re creating a scalable platform that reduces complexity and shortens development cycles,” says Maria Anhalt, CEO of Elektrobit.
ELECTRIFICATION: A NEW DEFINITION?
Across these initiatives, a common theme emerges: electrification is diversifying. The new powertrain landscape encompasses hydrogen fuel cells, hybrid electric generators, advanced semiconductor power electronics, and software-defined architectures, each serving a distinct role. What unites them is a shift from siloed vehicle design to system-level thinking where propulsion, software, and manufacturing are engineered as interconnected elements of one digital ecosystem.
