Automotive

According to the International Organization of Motor Vehicles Manufacturers, 80,145,988 vehicles were manufactured globally in 2021: passenger vehicles represented about 71.2% of the total, and commercial vehicles 28.8%.

Today China is the #1 vehicle manufacturer- turning out 32% of all vehicles manufactured globally, followed by the U.S with 11.4%. Global revenue for passenger vehicles has surpassed $3 trillion, with revenue from commercial vehicles representing about half that amount.

Behind that mountain of finished vehicle product lies a complicated supply chain of Tier 1, Tier 2 and component suppliers of the myriad products required in today’s vehicles: metal, glass, electronics, plastics/composites, paint/coatings, rubber, textiles, etc. Increasingly complex supply chains and the need to be able to deliver replacement components seven years after a model hits the market are challenges the industry faces every day.

Another challenge facing the industry is increasing regulatory scrutiny of fuel efficiency and emissions. US Corporate Average Fuel Economy (CAFE) standards designed to increase the average fuel economy of cars and light trucks sold in the US- and similar standards in other markets- are driving vehicle manufacturers to explore light-weighting and other means to improve fuel economy.

Geo Strategy Partners’ experience in the automotive industry crosses our research, strategy and M&A practice groups. We understand the complicated supply chain in the automotive industry and serve clients in this sector with customized research and analysis, strategy consulting, and M&A support.