According to the newly released Global Automotive Supplier Study 2025 by Roland Berger and Lazard, the global automotive supplier landscape is under strain, with profit margins falling to a projected industry average of just 4.7% in 2024. The report, which analyzed over 600 suppliers worldwide, highlights that while North American suppliers have fared better than most, there are significant industry pressures.
The study identifies five major trends reshaping the global supplier industry:
- Stagnating global production volumes are driving regional overcapacity
- Recalibration of expectations for BEV adoption in North America
- The rise of software-defined vehicles, demanding rapid technological adaptation.
- Intensifying global competition, including aggressive growth from Chinese OEMs.
- Geopolitical uncertainty, trade reconfigurations, and policy changes in the wake of the U.S. elections.
In 2024, Chinese suppliers led with EBIT margins of 5.7%, followed by suppliers in North America (5.5%), Europe (3.6%) and South Korea (3.4%).
“North American suppliers have displayed tremendous resilience to the supply chain disruptions and industry pressures, with steady EBIT margins above 5% since 2021,” said Isaac Chan, Partner at Roland Berger. “Going forward, this outperformance could continue. While BEV investments will require more time to yield returns, the ongoing tariff environment could be used as an advantage by some players.”
Despite these headwinds, the study offers a roadmap forward. Suppliers that embrace strategic partnerships, focus on competitive technologies, and localize operations will be best positioned to emerge stronger.
Download the full study here.
