Automotive Suppliers Outlook for 2025: Trends and Challenges

As the automotive industry enters 2025, one thing is clear: agility is the key to survival in the years and decades to come.

Recent interviews with 42 senior executives across the supply chain, conducted by S&P Global Mobility, uncovered three critical challenges in automotive suppliers' outlook for 2025: supply chain disruptions, labor shortages, and regulatory challenges.

However, new technology trends and revenue opportunities are also providing some positive momentum. With electric vehicles (EVs), connectivity, and sustainability driving the future, suppliers will need to recalibrate their strategies to thrive in a dynamic and competitive market.

Our whitepaper offers key takeaways and quotes from our executive interviews, offering important insights into automotive suppliers' outlook for 2025.

Topics covered include:

Top Challenges Facing Automotive Suppliers in 2024

The automotive supply chain faced several pressing challenges in 2024, many of which are expected to persist into 2025. Chief among these are ongoing supply chain disruptions, rising raw material costs, and regulatory compliance issues.

Key Developments in the Automotive Sector

Despite these challenges, the automotive sector has seen significant developments that are shaping the future of the industry. The momentum for EV adoption continues, driving demand for innovative products and solutions.

Automotive Supplier Outlook for 2025: Opportunities and Strategies

Looking ahead to 2025, the outlook for automotive suppliers is cautiously optimistic. While the industry faces ongoing challenges, there are significant opportunities, particularly in the growing EV market. Many suppliers are preparing for moderate growth, driven by increased demand for electric vehicles and related technologies.

Key Issues to Address in 2025

To navigate the challenges ahead, automotive suppliers must prioritize several key issues. First, they need to remain agile and adaptable to the rapidly changing automotive landscape. Effective supply chain management strategies will also be essential to address the volatility in raw material availability and the ongoing labor shortages. Additionally, continuous investment in advanced technologies will be critical for suppliers to maintain a competitive edge and enhance their operational efficiency in a dynamic market environment.

Conclusion

The automotive industry's outlook for 2025 is shaped by a complex interplay of challenges and opportunities. While supply chain disruptions, labor shortages, and regulatory compliance issues remain key concerns, the continued push towards electric mobility, connected vehicles, and autonomous driving technologies offers significant growth prospects.

Suppliers that prioritize resilience, agility, and innovation—while investing in workforce development and sustainability—are likely to emerge as leaders in the next phase of the automotive revolution.

By fostering strategic partnerships and embracing technological advancements, the automotive supply chain will be better positioned to thrive in an increasingly dynamic and competitive market. The road ahead may be uncertain, but for those who are agile and forward-thinking, the opportunities for growth and success are abundant.

Download the whitepaper.

This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.