July 28, 2025
The past decade has transformed the global automotive supply industry. Following years of growth and increasing globalization, the sector has encountered structural shocks — from the rise of electrification to the effects of COVID-19 — which have reduced margins and diminished economic value. However, amid this upheaval, a few companies have managed to stand out as consistent performers.
Market context: A decade defined by volatility
The automotive sector’s once stable growth trajectory fractured due to electrification, changing propulsion systems, pandemic-driven supply disruptions, and rising capital costs and investor scrutiny.
From 2020 to 2024, the average economic profit dropped to -3.6%, with many suppliers struggling to create value. Nevertheless, some companies maintained growth and delivered shareholder returns despite challenges — showing that strategic clarity, scale, and execution are crucial in a disrupted market.
The Winners' playbook: Four attributes that define success
The study analyzed 65 leading automotive suppliers across North America and Europe, evaluating their financial performance over two distinct periods. The research focused on economic profit, invested capital growth, and shareholder returns to identify top performers. Here’s what emerged:
- Business leadership
Winners lead their segments. They utilize core strengths, influence market trends, and establish leadership in specific areas — often concentrating over 70% of revenues in zones where they can control pricing and create defensible value. - Strategic coherence
Top performers align their portfolios with a clear strategic intent. They seek synergies across business units, avoid fragmented investments, and ensure every acquisition or expansion builds on core strengths. The result? Higher valuation multiples and a stronger long-term position. - Financial scale
With higher market capitalization and better access to capital, Winners enjoy a lower WACC (8.4% vs. 9.9% for underperformers). Being included in key indices improves investor visibility, while consistent earnings performance attracts capital even during volatile markets. - Proven ability to execute
Beyond strategy, winners deliver — maintaining disciplined execution, setting realistic yet ambitious growth targets, and managing active portfolio shifts. They acquire at three times the rate of underperformers, using M&A as a strategic lever, not a reactive move.
Performance under pressure: Winners vs. the rest
Even as overall industry returns declined, Winners consistently outpaced peers:
- +6% CAGR shareholder returns (2020–2024)
- Superior EBITDA growth and valuation multiples
- Lower earnings volatility and stronger market confidence
Winners didn’t avoid risk — they managed it more effectively, turning disruption into opportunity while others retreated.
What this means for automotive leaders
In a market that rewards clarity, scale, and execution, leaders must ask:
- Are we investing in areas where we have genuine leadership potential?
- Does our portfolio reflect a clear, synergy-driven strategy?
- Are we leveraging our financial scale and market position?
- Do we possess the execution capabilities to outperform during a downturn?
How Roland Berger can help
We assist automotive suppliers in benchmarking their performance against industry leaders, identifying strategic gaps and creating pathways for sustainable growth. With in-depth sector expertise and proven methodologies, we collaborate with clients to turn disruption into a competitive advantage.
Download the full study to further explore the performance of 65 leading suppliers across North America and Europe.
RB contacts
Brandon Boyle, Senior Partner
Martin Bodewig, Partner
Isaac Chan, Partner
Rebecca Evans, Principal