In the summer of 2025, the automotive industry worldwide will be under extreme pressure to innovate and improve efficiency.
Global uncertainties, political trade barriers – such as US punitive tariffs of USD 108 billion according to the Center of Automotive Research (CAR) – volatile markets, and strong price pressure, for example from Chinese competitors, are affecting the profitability and investment scope of German OEMs.
European suppliers are now only achieving an EBIT margin of 3.6% (Roland Berger, CAR), while the ifo index shows a “crisis-like mood” of -28.3 points.
Production and market: two sides of the same coin
- Production records for electric cars: According to the VDA, Germany produced a total of 864,000 electric cars in the first half of 2025, with the share of electric cars in production rising to 40%. New registrations of electric vehicles grew by 66% in July (BEV +58%), although total sales and production are still around 12% below 2019 levels.
- China remains difficult: German OEMs still generate around 36–40% of their sales in China, but the EV market share of German brands there is only 7%. Sales losses are the result of intense competition and political and regulatory disruption.
- Global export successes, but below pre-crisis levels: July exports up 7% year-on-year, but still 10% below the pre-crisis level of 2019.
Top insights from consulting & market data
The latest consulting and industry analyses show how significantly the automotive supply chain will change by 2025 – and which levers for resilience and competitiveness are in focus:
- Reshoring and sourcing strategies in transition:
The share of offshore sourcing has fallen by 22% within two years (Capgemini). Companies are moving deliberately toward regionalization and robustness in order to better cushion geopolitical risks and supply stoppages. - Investment boost for digitalization and resilience:
63% of automotive executives plan to invest more in the supply chain in 2025, especially in digitalization and AI-based platforms – an increase of 15% over the previous year (Capgemini). This puts digital solutions, automated processes, and transparency along the value chain at the strategic center. - Resilience remains the biggest weakness:
Despite higher budgets, only 20% of companies consider their supply chain to be truly resilient (Capgemini). This gap highlights the urgency of increasing reliance on digital platforms and external partnerships in order to master crisis, compliance, and market requirements. - Consolidation pressure and M&A wave:
According to Baker Tilly, two-thirds of suppliers expect significant market consolidation. Efficiently scalable platforms, automation, and intelligent outsourcing strategies are becoming a survival factor. - Focus on new sourcing models (trade and customs risks):
Industry trends show that “trade-insulated cost” – i.e., low-customs and low-risk procurement models – are replacing the previous low-cost strategy (Capgemini, S&P Global, KPMG). Strategic relationships and partnerships are increasingly replacing purely price-driven global sourcing.
Current studies by Capgemini, Baker Tilly, the Center of Automotive Research, and S&P Global make it clear: supply chain resilience, digitalization, and targeted partnerships will be the game changers for the automotive industry in 2025 – ensuring sustainable competitiveness in an age of volatile markets, trade barriers, and margin pressure.
Pure austerity measures and short-term cost reductions will rarely provide a sustainable competitive advantage in the automotive industry in 2025. Studies by industry experts such as Capgemini, KPMG, and the Center of Automotive Research clearly show that structural cost-cutting measures block necessary investments in digitalization, supply chain security, and modern warehouse logistics. Flexible, resilient, and digitalized supply chains are the key to crisis resilience and determine who is positioned for the future.
“Those who only save during a crisis often save away their future.”
Roland Berger, Automotive Report
Seeing the big picture as an opportunity:
Global market forces—like competition from China, US tariffs, and fluctuating margins—aren't something you can totally control. What matters is how fast your company can respond to geopolitical changes, regulatory requirements, and price pressure. Agility, adaptability, and proactive risk management are the foundation of modern automotive supply chains.
Invest selectively and with an eye to the future:
Invest specifically in flexible, balance sheet-neutral warehouse solutions, digital end-to-end supply chain platforms, and modern obsolescence management. These measures not only ensure continuous supply and liquidity advantages, but also create the conditions for production reliability and innovative strength.
Partnerships as a factor for success:
Cooperation with specialized service providers such as btv technologies enables efficient, scalable, and secure process design. By outsourcing non-strategic areas such as component storage, spare parts management, or compliance, you gain flexibility, minimize risks, and strengthen your ability to act—especially in volatile markets.
Amid geopolitical uncertainty, trade barriers, and massive cost pressure, digital, resilient, and sustainable supply chains will become a key factor in the automotive industry in 2025. According to KPMG, investment in transparency, digitalization, and real-time capabilities now counts as a clear competitive advantage: Those who use modern risk management approaches, share platforms with suppliers, and proactively monitor bottlenecks will be able to master market disruptions and political shocks with much greater confidence.
Current analyses by Everstream Analytics also confirm that traditional hedging is no longer sufficient: data-based monitoring, central risk mapping, and early warning systems are crucial for sustainably countering growing threats, including extreme weather, geopolitical risks, and cyberattacks. Studies show that the integration of intelligent data platforms helps to identify supply disruptions at an early stage and minimize them significantly.
The automotive industry in 2025 requires foresight
Saving alone is not the answer—without innovation, digital transformation, and targeted partnerships, there will be no leverage for growth and resilience. Markets remain volatile, as the latest figures from the VDA and CAR show, but those who outsource processes and establish resilient supply chains will secure liquidity and remain competitive, as the latest record figures for e-mobility demonstrate.
Info box: Automotive 2025 – relevant key figures
| Key figure | Value | Source |
| EBIT margin for suppliers in Europe | 3,6 % | CAR, Roland Berger |
| Additional US customs costs in 2025 | 108 Mrd. USD | CAR |
| Passenger car production Electric vehicles | 864.000 (H1/25) | VDA |
| Electric share of passenger car production | 40 % | VDA |
| BEV market share of new registrations | 17,8 % (Jul) | VDA |
| Increased investment in the supply chain | +15 % | Capgemini |
| Proportion of offshore sourcing | –22 % | Capgemini |
| consolidation expectation | 66 % | Baker Tilly |
| Supply chain resilience value | 20 % | Capgemini |
| Market share of German OEMs in China EV | 7 % | CAR, S&P Global |
The figures and analyses from leading institutes and consultancies are clear: the automotive industry faces a choice between continuing to weaken itself through cost cutting alone or investing specifically in innovation, digitalization, and scalable partnerships. Those who remain flexible, intelligently outsource risks, and actively shape supply chain resilience will create new opportunities for themselves even in uncertain times.
For decision-makers: The future of the industry will not be decided by cost-cutting, but by striking the right balance between innovation, efficiency, and strategic networking. Those who make smart decisions now – and build on stable, scalable partnerships with btv technologies – will remain capable of acting, ready to invest, and strong for the future, even in difficult markets.
