Car companies, which sell cars to consumers through the internet, are increasingly using car parts to build electric vehicles.
But how do car parts firms profit from this trend?
“It’s an interesting and fast-moving field, but it’s a very complicated field,” said Simon Lee, chief executive of the Automotive News Retailer Council.
“There are very large numbers of suppliers, so we need to understand how they make money,” he said.
“We can see that car parts companies are spending a lot of money on research and development, and we have to understand what that research is actually doing.”
He said research into electric cars has seen a big drop in prices, which has driven down prices of car parts.
“The cost of electric cars is less than half what it was 10 years ago, and the cost of the battery is cheaper than the cost to produce it,” Mr Lee said.
In the US, the average price of an electric car has fallen from around $70,000 to $35,000 since 2017.
There have also been dramatic increases in the number of electric car drivers, with more than a million drivers in the US now on the road.
“It is changing the landscape, so it’s really hard to predict how this is going to change the business,” Mr Lees said.
He said car parts retailers could be impacted by this trend, but that it was also good news for car manufacturers.
“What we’re seeing now is that the costs of electric vehicles are going down, which is good for the car companies,” he told ABC News.
“They can get their money back, which means that more money is available to reinvest in other businesses.”
He also pointed out that car companies were making more money than ever before, and that car manufacturers had been working hard to make their vehicles safer.
“Now that the electric vehicle revolution is coming to a conclusion, car companies are going to have to take a different approach,” he added.
“Because they are now the most profitable companies in the world.”