Auto supply chain: Merge or miss out?

In a fast-evolving automotive market where suppliers’ products are increasingly commoditized and revenue growth patterns are bleak, companies are exploring new business models and revenue streams through partnerships and M&As.

The 2020s have not been auspicious for the automotive industry or the automotive supply chain. Increasing regulatory stringency regarding emissions and fuel economy, the topsy-turvy transition to electric vehicles, the rise of software-defined vehicles (SDVs) and, more recently, tariffs and counter-tariffs imposed by various countries have all contributed to the current turmoil. All this followed the COVID-19 pandemic at the beginning of the decade, which caused widespread auto supply chain disruptions.