REPORTGlobal AutomotiveSupplier Study2025Stagformation: Trenas, outlookand recommendations to navigatestaanationand transformationRolandLAZARDBerger
Managementsummaryheglobalautomativesupplierindustryisfacingachallengingmarkelandscape,cloudedbystagnatinggrowth,geopliticaluncertinty,risingcompetition,andmountingcostpressures fromprolonaedtechnoloaialtransformations.,Inessence,whatwecurrentlyobserve intheautomotivesupplierindustrycanbeaptydescribedasaperiodof'stagformation?,wherstagnatingvolumegrowthis coupled withthe urgentneed totransformThefinanciaperformanceafautomoivesupliersreflects thischallenginglevels.Whiletherewasatemporarvstoblzationin2023. forecastsindicatedfurtherdeclinein2024,withindustrvaveraaesexoectedtodropto4.7%Weexpectprofitcbitychallngestoprsistandlikelyintensifyinthecomingyears,drivenbyfivekeytrends:1)stognatingglobalsalesvolume,.2)sloweradoptionafdemandforadvanceddiverassistancesystems(ADAS)andconectivityfentures4)swellinaeconomicandcomoetitivepressuresinChinaand5resurginggeopoliticaltensionsandglobdltradebariers,Toremaincompettiveintoday'sdynamicautomativelandscapeand prepareforthefuture,werecommendsuppliersoptimize theirportfoliosthroughpartnherships,strecanlinetheirprodurctofferings, andfocus onstrategictechnolbogies.Westemsuppliersmust,prinitizestructuralcostimprovementscostleadersshouldfocus onstrtegic,well-earecutedexpansiontosustain theitadvantage.Giventheacceleratingeopolicaldynamicsandmarketvalatltyexecutingclearanddisciplinedregionalstrategiesiscrucia.Thesestrategieswill be essentialforensuringreancingprofitabilty,andimprovingY001S/xx000xXJ0M0Ocapitalstructures.GlobalAutomotiveSuppierStudy2025
ContentsFastFactspaaeGettinastarted14.7%EstimatedAutomotivestateofhealthindustry-levelEBITmarginin2024Reviewoffinancialhealthoftheautomotivesupplier industryKeysuppliertrendsandimplications67%4.1/Globlproductionvolumestagnation,Expected4.2/BEVslowdownandincreasingpressuremarket share4.3/Softwnre.definedvehiclesof localOEMsinChinain20304.,4/Chinesemarket&ecompetitiveness24Recommendations111m Productionovercapacitiesin theautomotiveindustry,2020-2030GlobalAutomotiveSuppierStudy2025
GettinastartedThe oostcoupleofvearshave been toughforthe automotive supplierindustry. The post-Covidbouncefizledout, withlacklustergrowthandincreasing cost,regulatory, andsupplychallenges.Although we saw a certain stabilization and recovery until the first half of 2024, theautomotiveenvironentbecarneincreasinglychallenging throughouttheyear.Theelectrivehicle marketis experiencing a slowdown and overcapacity,structural shifts, andrisingcostsareintensityingcompetition.WesefiveoverarchingtrendsintheoverllautootivemarketthathavespecificconsequencesforthesupplierindustrvyGlobal production is stagnating. with Europe recovering most slowly. while China and2.BEVsalesarestaanatinainEuropeandNorthAmericaassubsidiesare withdrawn.but3.Software-definedvehicles(SDVs)are expected tobecome increasinglydominantin the4.ThemarketenvironentinChinaisgetingeventougherwithfiercecompetitionamongOEMs,resultinginafurthermarginsqueeze5.Acceleratinggeopoliticaldynamicsare reshapingglobaltradeamongcore automoiveregions through tariffs and subsidies aimed at fosteringlocal economic competitiveness.To naviaate the...
