2026 Automotive Supplier Outlook: What top executives are saying about the year ahead

• Supply chain resilience: 70% of suppliers reported enhancing their supply chain strategies to mitigate risks associated with geopolitical tensions and economic volatility.
  
• Talent acquisition challenges: 60% of companies indicated that talent shortages in specialized areas remain a challenge, prompting investment in workforce development.
  
• Sustainability initiatives: 75% of suppliers are prioritizing sustainability practices, including the use of recycled materials and environmentally friendly manufacturing processes.
  
• Strategic partnerships: 50% of suppliers are actively pursuing strategic partnerships with OEMs and technology firms to enhance innovation and market reach.
  
• Regulatory compliance investments: 65% of companies are investing in compliance solutions to meet evolving regulatory standards, particularly concerning emissions and safety.

“The uncertain impact of emerging mobility solutions, such as electrification, Mobility as a Service (MaaS) and hydrogenation, has introduced additional complexity and concern [...] external factors, including emissions and REACH legislation, as well as ongoing tariff uncertainties, have necessitated an unprecedented level of flexibility and agility” 

--Daniela Patrizi, General Manager Europe, Middle East, Africa and India, Lubricants, Chevron 

Across the 59 interviews, suppliers described 2025 as a year where volatility and automotive supply chain challenges were nearly constant. Geopolitical tension and major shifts in tariff policy reshaped sourcing almost overnight, forcing rapid operational pivots.

AB Dynamics, for example, cited supply chain disruptions that required “fast-tracking contingency planning” and diversifying component sourcing to maintain customer continuity. BASF Coatings similarly responded to shifting tariffs by qualifying alternative suppliers and adapting formulations based on material availability.

“[The] shift toward electrification and low-carbon mobility [...] is expected to vary by region and application. We have already seen many OEMs slow or roll back their BEV plans for now, due to concerns over consumer costs and fierce international competition.” 

Olivier Krotoszyner, chief operations officer, Clean Air Division, Johnson Matthey   

Executives expect 2026 to be a year of selective but meaningful growth. Demand is strongest in electrification, autonomy, SDVs and in-cabin intelligence.

Clarios, for example, expects 2026 to be an inflection point as OEMs accelerate adoption of advanced low-voltage systems and supercapacitors to support the higher power demands of emerging software-defined vehicle platforms. Harman expects accelerated global growth as the “in-cabin experience becomes the ultimate differentiator,” supported by its productized Ready solutions.

Across all responses, suppliers view 2026 as a stabilizing year that rewards technology depth, cost discipline and strategic focus.

“Having strong ecosystem partnerships is one of our greatest differentiators and is instrumental for helping the entire automotive industry evolve toward more automated and intelligent vehicles.” 

Dennis Laudick, Senior Director of Product Marketing - Head of Automotive, Qualcomm 

Partnership-driven resilience was a dominant theme for the 2026 automotive supplier outlook. AUMOVIO established an in-house semiconductor design unit and secured GlobalFoundries as a strategic partner to ensure long-term supply security. Vaionic Technologies is prioritizing partnerships with OEMs and Tier 1s to industrialize its axial-flux e-drive platform rather than building manufacturing internally.

Software, data and digital ecosystems also rise to the forefront. Easee is investing in grid-balancing energy services, while Loftware is broadening its cloud-enabled collaborative ecosystem, aiming to help customers standardize labeling and product‑identification processes while improving compliance, speed and responsiveness across global operations.

Looking ahead, companies are approaching 2026 as a pivotal year to reinforce flexibility and accelerate innovation, ensuring they remain resilient and competitive in the existing automotive supplier market.

The automotive industry’s outlook for 2026 reflects both evolving challenges and transformative opportunities. Market dynamics—including shifting EV incentives, heightened scrutiny on quality and cybersecurity, and region-specific supply chain pressures—underscore the need for flexibility and operational resilience.

At the same time, the ongoing push toward electrification, advanced driver assistance systems, edge-AI, and connected vehicle technologies continues to create substantial growth potential.

Though uncertainty remains, companies that are forward-thinking, resilient, and strategically collaborative will find abundant opportunities for growth and long-term success.

You can also access the complete 146-page interview report, featuring all executive responses in full, on our AutoTechInsight platform.

2026 Automotive Supplier Outlook - Automotive Technology Insight | Forecasts | Industry News | Supply Chain