Euromonitor International examines howmautomotive industry performs globally and in the largest countries in terms of automotive output. The report also provides data for production, market size, imports, exports, industry’s costs, industry’s profitability and number of companies. The industry and market overview provide benchmarks against other countries in the region. Electrification Stricter emission standards and the technological limitations of internal combustion engines will drive investments in electric and hybrid vehicle production.
Manufacturers will have to unlock more resources for investments and strengthen battery supply. Connected vehicles Changing consumer preferences and stricter vehicle safety regulations will require more investments in connected vehicle technologies. This will gradually change the supply chain, with electronics and technology providers gaining greater share. At the same time, connected vehicles can help to open up new business models and revenue streams for car manufacturers. Supply chain localization The COVID-19 pandemic had severe effects on the automotive industry’s global supply chains.
To better shield from similar risks in the future, manufacturers are planning to increase supply chain localization. This would produce regional production hubs and could benefit Eastern Europe and Latin America thanks to lower operating costs and geographic proximity to the largest automotive markets. Consolidation of suppliers Rising operating costs and supply chain changes will continue to support the consolidation of suppliers. Suppliers will need to collaborate as they feel pressure from OEM and technology companies, and at the same time must find resources to invest in electrification programs.