Automotive

The automotive industry stands at a pivotal crossroads, shaped by technological disruption, shifting consumer preferences, global economic uncertainty, and evolving regulatory landscapes.

OVERVIEW

Automative Industry Overview

The following recent statistics highlight the scale, growth trends, and evolving dynamics within the automotive industry.

$1T

US Economic Output

The U.S. automotive industry generated over $1 trillion in economic output in recent years, supporting nearly 10 million jobs across manufacturing, dealerships, and related sectors.[^1]

25%

EV Growth & Sales

Global vehicle sales are projected to grow modestly, with electric vehicles expected to account for an increasing share—potentially reaching 20-25% of new car sales in major markets by 2028.[^2]

25%

Chinese Automakers

Chinese automakers now compete in global markets with vehicles priced up to 25% lower than traditional OEMs, intensifying pressure on legacy manufacturers.[^1]

$70B

US EV Investments

The U.S. auto industry invested over $70 billion in EV and battery manufacturing between 2021 and 2023. Reflects the scale of the electrification transition.Source: Alliance for Automotive Innovation.[^2]

1.)PwC: Next in auto 2025
2.)Alliance for Automotive Innovation

FEATURES

Key Forces Driving Transformation

Several key forces are driving transformation across the automotive industry, shaping its direction and future growth.

Geopolitical and Regulatory Shifts

Trade tensions and evolving emission standards are reshaping the global automotive supply chain. Proposed U.S. tariffs of 10-25% on goods from Canada and Mexico, and up to 60% on imports from China, could increase costs for manufacturers and consumers alike. Automakers are reevaluating sourcing and production strategies to manage tariff exposure and maintain competitiveness.

Electrification and Sustainability

The transition to EVs is central to the industry’s future, but progress is uneven. While automakers have invested heavily in electrification, consumer adoption has lagged behind expectations, creating compliance and profitability challenges. Policy uncertainty—such as potential rollbacks of incentives for green energy—adds further complexity, but many companies remain committed to sustainability goals to meet global standards and consumer demand.

Technological Innovation and Software-Defined Vehicles

Vehicles are increasingly defined by their software capabilities, from advanced driver-assistance systems to over-the-air updates. Traditional OEMs face the challenge of modernizing product development processes to compete with tech-forward and Chinese rivals who have embraced software-centric architectures.

Global Competition and Supply Chain Resilience

Chinese automakers have rapidly advanced in electric vehicle technology and manufacturing efficiency, enabling them to expand globally at lower price points. Meanwhile, persistent supply chain disruptions and inflation have made operational resilience a top priority for automotive leaders.

DYNAMICS

Challenges and Opportunities

As the automotive industry evolves, companies must address a range of complex challenges that are reshaping how they operate and compete.

Challenges

Business Model Reinvention

Automakers must balance investments in electrification, software, and ICE vehicles, focusing resources on core assets and partnerships to remain competitive in a shifting market.

Supply Chain Management and Tariff Exposure

Tariffs and supply chain risks push automakers to explore regional production, scenario modeling, and tax planning to ensure flexibility and protect profitability.

Sustainability Amid Policy Change

Despite shifting federal policies, ongoing sustainability investments and scenario planning help automakers meet emissions goals and discover new growth opportunities.

Opportunities

Modeling and Scenario Planning

Proactively assess the impact of tariffs, regulatory changes, and supply chain disruptions to inform strategic decisions ..

Investment in Electrification and Software

Focus on areas with the greatest potential for competitive differentiation and long-term growth.

Supply Chain Resilience

Develop regionalized and diversified supply chains to reduce vulnerability to external shocks.

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OUR SOLUTIONS

Automotive Focused Solutions

Tailored solutions designed to optimize efficiency and innovation within the automotive industry.

Accelerating ADAS and Autonomous System Development

We fast-track the development and deployment of Advanced Driver Assistance Systems (ADAS) and autonomous driving technologies by providing comprehensive services—from concept design to long-term support. Our expertise in simulation, sensor integration, and validation helps automotive companies reduce R&D costs and bring next-generation mobility solutions to market faster.

Enabling the Shift to Software-Defined Vehicles (SDV)

We support the industry’s transition to software-centric architectures through advanced platform engineering, robust cloud infrastructure, and DevOps capabilities. Our solutions enable seamless over-the-air (OTA) updates, advanced data analytics, and high-performance chip engineering, empowering automakers to deliver scalable, feature-rich vehicles that evolve over time.

Accelerating Electric and Connected Mobility

We drive the shift to electric vehicles (EVs) and connected mobility by delivering solutions for e-powertrain, battery management, charging infrastructure, and in-vehicle connectivity. Our team leverages cutting-edge HMI/UX design, 5G integration, and cloud-based platforms to speed up EV component development and enhance the digital experience for drivers and passengers.

Enhancing Vehicle Engineering and Testing

Using advanced design, simulation, and testing services, we streamline the development of vehicle bodies, chassis, and powertrains. Our certified labs and test benches ensure comprehensive quality assurance, while our systems engineering and wiring harness design contribute to improved safety, performance, and efficiency.

Driving Digital Transformation Across the Value Chain

We digitize automotive operations by implementing cloud solutions, data engineering, AI/ML, and cybersecurity. Our initiatives improve operational efficiency, lower costs, and enhance both vehicle safety and performance—helping our clients secure a competitive advantage.

Transforming Digital Commerce and Customer Experience

We help automakers create personalized, engaging customer journeys through omnichannel commerce platforms, next-generation CRM systems, and AI-powered marketing solutions. Our digital strategies strengthen customer relationships and increase lifetime value across the vehicle lifecycle.

Modernizing IT Ecosystems and Business Processes

We modernize IT infrastructure with hybrid cloud, digital workplace solutions, and custom application development. By deploying Robotics Process Automation (RPA) and AI-based platforms, we optimize manufacturing, revenue management, and support functions, driving operational excellence.

Advancing Sustainability and Smart Operations

We enable automotive companies to achieve ESG goals and build future-ready factories, warehouses, and showrooms through integrated IoT platforms, connected logistics, and analytics-driven supply chain solutions. Our digital transformation of logistics and manufacturing enhances sustainability and operational resilience.

OUR RESOURCES

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