Geopolitical risks are changing the automotive industry and increasing strategic pressure

The automotive industry is more exposed to geopolitical upheavals and current crises than almost any other sector. 77 per cent of companies feel significantly or very strongly affected by global risks - far more than in other sectors. The extraction for the automotive sector from our comprehensive study Navigating Geopolitics: Total State Defence in Transition shows how profoundly these developments influence strategic decisions.

The study shows that 33 per cent of companies already have a structured geopolitical risk management system and 37 per cent work with systematic forecasting and regular monitoring.

Despite all the risks, 73 per cent of automotive companies see new business and cooperation opportunities. There is potential in areas such as production, research and development and the expansion of technical infrastructure. The study shows where companies can tap into these opportunities in a structured way and what conditions they should create to do so.

However, our sector report also shows that 73 per cent of companies see political uncertainty and regulatory requirements as key obstacles. It is therefore essential for decision-makers to be able to recognise geopolitical developments earlier, mitigate risks more robustly and make transformation projects more resilient. Our publication provides concrete best practices from the industry.

Whether supply chains, cyber security or scenario management– companies in the automotive industry are expanding their resilience capabilities. The study shows which measures are proving successful, where there is pressure to act and which levers companies should use now in order to remain stable, flexible and capable of acting in the geopolitical environment.

Download the sector report now and secure comprehensive insights.