We just finished reading a report entitled, Automotive Outlook 2040, published by Roland Berger. Roland Berger is a prominent global strategy consultancy, recognized for its extensive service offerings that cater to a variety of industries and business functions. With a rich history since its founding in 1967 and headquartered in Munich, the firm has established itself as a leader in transformation, innovation, and performance improvement, all while prioritizing sustainability across its projects.
Our take is the automotive industry is undergoing a profound transformation, reshaping the landscape in ways that may not align with conventional expectations. One of the most significant shifts is the move from globalization to regionalization, highlighting an increasingly polarized market. As manufacturers adapt to local preferences and demands, we are seeing a growing emphasis on local-for-local products that resonate more deeply with consumers in specific regions. Additionally, the emergence of artificial intelligence is fundamentally altering production processes, moving the industry from human-driven operations to automated systems that optimize efficiency and precision. Meanwhile, the focus has shifted from raw horsepower to vast amounts of data—terabytes—needed to support advanced connected vehicle technologies and enhance user experiences.
As this evolution unfolds, the dynamics between markets are becoming increasingly nuanced. While Chinese automakers and companies in the Global South are rising swiftly in prominence, Western markets continue to hold their ground, leading to complex competition and collaboration. Original Equipment Manufacturers (OEMs) face a pivotal juncture: will they navigate the dominance of Chinese manufacturers, or will a revitalization of Western innovation redefine the market? Suppliers also find themselves at a crossroads, discovering new revenue opportunities while managing a shifting balance of power that demands agility and adaptability. As the automotive world presses forward into uncharted territory, it is clear that the journey ahead is not just a sprint but a marathon, requiring strategic foresight and resilience to thrive in this rapidly evolving climate.