Profitability and growth in the Automotive Industry

Global supply shortages, volatile raw material prices, stricter regulatory requirements, and the technological shift toward electromobility are increasing pressure on the automotive industry to reevaluate and evolve traditional processes and business models. At the same time, EBIT per vehicle or component is steadily declining for many companies in the sector – a critical situation exacerbated by tariffs and trade conflicts in core markets.

At the same time, attractive growth opportunities are emerging – for those willing to break away from conventional processes and rapidly enable their organizations to transform. The transition to e-mobility, new business models such as car-as-a-service, and digital platform solutions open up space for innovation and differentiation. New revenue streams are arising in data-driven services, autonomous driving, and the connected car segment. In addition, there is growing end-customer demand for digital, sustainable, and flexible mobility solutions – offering opportunities to tap into new market segments and build valuable relationships with OEMs, suppliers, and target customer groups.

Strengthening innovative power

To secure and enhance long-term profitability, companies should focus on agile structures, digital business models, and collaborative ecosystems. Investments in R&D, the targeted development of digital capabilities, and the optimization of the value chain – for example through AI-supported processes – are essential levers. At the same time, fostering strategic partnerships is key to strengthening innovation and opening new market access. The foundation for all of this lies in effective complexity and cost management.

Identify all relevant cost levers across both direct and indirect areas of your organization with EFESO – and leverage our industry expertise to apply them profitably and with a strong focus on quality.

We offer targeted complexity management, impactful and collaborative supplier and procurement management, as well as consistent implementation of lean principles. This combination has proven to be a key success factor in profitability improvement projects, especially in the context of:

• Performance boost for profitability programs
  Holistic profitability initiatives focusing on revenue and cost optimization along the entire value chain – from procurement to delivery; Cost reduction through targeted cost-value engineering, efficient processes, and lean organizational structures (e.g., zero-based approaches); Integration of regulatory and market-related changes, such as CO₂ targets or new trade restrictions, into analysis and implementation.
• Enhancing supplier and innovation management
  Establishing efficient and collaborative partnerships between OEMs and OES to drive performance and innovation.
• Einkaufsoptimierung
  Advancing procurement structures and processes to ensure long-term profitability – for example, by adapting sourcing strategies, optimizing value streams, and increasing flexibility in response to market, cost, and demand fluctuations.