MHP mobility study: Strategic partnerships are critical to the success of the automotive industry in Europe

The management and IT consultancy MHP conducted a mobility study based on an online survey of 650 automotive decision-makers, exploring how strategic partnerships and emerging technologies are shaping the future of mobility.

The findings reveal that partnerships are becoming the key success factor in the automotive transformation process. Already today, 52 percent of companies in the European automotive industry rate old and new partnerships as “important” or “absolutely important” to their future viability. This conviction is even more firmly held in China (57 percent) and the USA (73 percent). What’s more, most OEMs and Tier 1 suppliers expect the relevance of partnerships to grow by more than 25 percent over the next three years. US manufacturers lead the way here with 76 percent of respondents holding this opinion, closely followed by China with 69 percent. In the EU5 countries, 53 percent of respondents see a clear increase in importance.

These figures from the MHP mobility study “The power of partnerships” support the assertion that strategic cooperations are becoming the key factor in the transformation of the automotive industry, while also highlighting the differences between the regions. The study is based on a survey of 650 managers from the EU5 countries (Germany, the UK, Spain, France, and Italy), China, and the USA. Decision-makers from OEMs were surveyed, along with Tier 1 and Tier 2 suppliers, technology partners, and service providers.

The main motive for new partnerships was identical across the three regions. Technology transfer and innovation top the list in the EU5 countries with 56 percent, as well as in China (55 percent), with a particularly strong showing of 72 percent in the USA. In addition, European companies also hope to gain access to new markets (41 percent) and reduce cost pressure (40 percent).

There are clear differences when it comes to the technological focus areas of strategic partnerships. A majority of 52 percent of the European companies surveyed are currently cooperating on cybersecurity, while 59 percent of US companies are trying to work on software-defined vehicles, and 54 percent of Chinese companies are embracing e-mobility and battery technology partnerships.

“The figures clearly show that the USA is using partnerships the most as a driver of innovation, while Europe remains too fixated on optimizing costs and minimizing risk. European manufacturers need to be bolder and use partnerships more to support technological leaps,” said Augustin Friedel, Associated Partner at MHP and a specialist in software-defined vehicles.

The three main drivers of the current transformation – electrification, software-defined vehicles, and artificial intelligence – form the technological core that is challenging the industry worldwide and at the same time compelling companies to forge new alliances. It is precisely in these fields that investment and development costs are rising massively, which means that cooperation is increasingly becoming a competitive factor.

The study also reveals that “local for local” is no longer a peripheral matter, but is evolving into an important trend in the global automotive industry. In the light of rising tariffs and geopolitical tensions, Chinese and US manufacturers in particular are opting for local partnerships in the target markets to cut costs and minimize political risks.

Based on the international survey, current market analyses, and case studies, the study attests to the fact that companies will only be able to grow in the future by embracing strategic cooperation. The main reason for this is the profound transformation of the automotive industry, with electrification, software-defined vehicles, artificial intelligence, and autonomous driving all raising the level of technical complexity and increasing the investment and development costs. At the same time, new competitors from Asia and the USA are surging onto the market with innovative solutions that are putting traditional vehicle manufacturers under pressure.

“For decades, corporate success in the automotive industry has been defined by competitive advantage. Those who possessed superior technologies or established more efficient processes were considered the winners. In the digital age, however, this lone wolf logic reaches its limits. AI, cloud-based platforms, and networked ecosystems are fundamentally shifting the success factors. New networks of specialized partners are working together to drive innovation – and generate a collaborative advantage that is vital for remaining competitive,” said Dr. Jan Wehinger, Partner at MHP.