Collaborative arrangements in the automotive sector are essential for achieving industrial triumph, according to a recent research.
In the rapidly evolving world of automotive manufacturing, partnerships are increasingly becoming a cornerstone for success. According to the MHP Mobility Study 2025, 52% of European companies, 57% of Chinese automotive companies, and 73% of US automotive companies consider partnerships crucial or absolutely crucial for their future viability.
The transformation of the industry, driven by electrification, software-defined vehicles, and artificial intelligence, is leading to a shift in success factors towards new networks of specialized partners. These partnerships are essential for driving innovations and generating competitive collaborative advantage.
European manufacturers, in particular, are being urged to be bolder and use partnerships more aggressively to drive technological leaps, as stated by Augustin Friedel, Associated Partner at MHP and specialist in software-defined vehicles.
Technology transfer and innovation are the primary motivations for these new partnerships in the EU5 countries, China, and the USA. For instance, 54% of Chinese firms are partnering in the field of electric mobility and battery technology, while 59% of US companies are working towards software-defined vehicles through partnerships.
The importance of partnerships extends beyond innovation and technology. They also play a significant role in gaining access to new markets and reducing cost pressure. Forty-one percent of European companies aim to access new markets through partnerships, while 40% seek to reduce cost pressure.
However, successful partnerships require more than just shared goals. Shared values, open communication, clear regulations on intellectual property, and fair revenue-sharing models are all crucial elements. Active risk management and overcoming cultural barriers are also key to long-term success.
Investment and development costs in these areas are increasing significantly, making cooperation an increasingly important competitive factor. The challenge lies in strategy and implementation, as it will only become apparent in the coming years which alliances will last.
A significant trend in the global automotive industry is "Local for Local," with Chinese and US manufacturers focusing on local partnerships in target markets to reduce costs and minimize political risks.
The study concludes that companies can only grow through strategic cooperations in the future due to the profound transformation of the automotive industry. Partnerships are only successful in the long run if they create a clear added value for all parties involved.
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