The automotive supplier industry is undergoing profound change. Driven by macroeconomic uncertainties, technological upheaval and geopolitical tensions, the industry is facing enormous challenges. The transition to battery electric vehicles (BEVs) is slower than expected - especially in Europe and North America - which is putting many suppliers under economic pressure. At the same time, Chinese companies are becoming increasingly important thanks to their innovative strength, price advantages and government support. While traditional suppliers are struggling with stagnating growth and falling margins, opportunities are opening up for those who focus on future technologies such as semiconductors, batteries and software at an early stage. To remain competitive in the long term, BCG identifies five strategic areas of action: actively addressing the growing influence of Chinese competitors, building operational resilience, targeted acquisitions and partnerships with tech companies, a consistent focus on software- and electrification-driven vehicle architectures and the strategic use of artificial intelligence to increase efficiency and differentiation. Only those who reposition themselves early on will be able to play a leading role in the future mobility ecosystem.
