H. Yoo
Research expert covering South Korea
Automotive suppliers worldwide - statistics & facts
Automotive suppliers are important contributors to the global automotive profit pool. They provide both supplies for auto manufacturers (original equipment, or OE) and replacement parts for the aftermarket. Lately, the automotive supplier industry has been facing challenges due to stalling vehicle sales. Motor vehicle sales began to stall in 2018, leading to a lower demand for auto parts. Moreover, the global shift towards electric mobility has caught many automotive suppliers off-guard: electric vehicles (EVs), compared with internal combustion engine (ICE) vehicles, are powered by engines with fewer moving parts and using different technology. To remain profitable in this new, challenging reality, automotive suppliers have started to focus more on developing new technologies for EVs and reducing their expenses, mainly through production cuts and layoffs.
