The automotive industry is constantly sparking. Fresh players enter the industry and emerging markets are redefining the value chain. New opportunities are at hand by connecting the vehicle with its environment. In today’s automotive market, car manufacturers provide less than 30 percent of a vehicle’s value, with the remaining coming from a sophisticated network of key suppliers. The capacities, abilities, and innovations of first-, second-, and third-tier suppliers are key for car manufacturers. The relationships between manufacturer and supplier are becoming more intense regarding the production and assembly programs. Nowadays almost 20 percent of the revenue of a typical European supplier now depend on Chinese market developments. The worldwide market for original equipment will expand by more than EUR 200 billion within the next decade. This expansion along with the innovation and investment will be unevenly distributed across the individual segments. The main drivers of these developments are stricter consumption, emission and safety regulations, as well as rising customer demands.
The automotive supply chain comprises of component manufacturers, car producers and car retailers. Leading European automotive suppliers have already set up branches in Asia and Latin America in order to stay closely connected to the distribution channels of car producers. Car producers have centered their activities around vehicle design, assembly and marketing. Component manufacturers constantly have to invest in new and smarter technologies and they need to organize themselves in foreign production regions. Securing of sufficient capital for investments is key to keep these companies on the move.