Keeping ahead in an uncertain automotive world

Insights from our C-suite barometer outlook for 2025 suggest that the top factor C-suite executives see as likely to hold back growth is economic uncertainty (41%). Other top factors include increased competition (35%), energy prices and shortages (31%) and geopolitical instability (30%).

Launched in 2013 as a joint venture of the three leading automotive and commercial vehicle suppliers Bosch, Knorr-Bremse and ZF, Alltrucks offers comprehensive diagnostic and technology-led services for the maintenance and repair of commercial vehicles and supports CV workshops in developing further their business. While the company is no longer considered a start-up, it strives to maintain the mindset and drive that first inspired the joint venture.

A crucial aspect of this approach is maintaining close contact with industry developments and remaining open to new ideas and technological trends. Maintaining a high level of industry visibility with peers and stakeholders enables companies to present their service offerings and cover the ever-changing needs of their customers.

For Alltrucks, it’s about continually considering how new technology impacts customers. For example, how will their daily life change with technology, and what are the consequences for the services provided to them?

Anticipate change

While being reactive to customer needs is essential, it’s equally important to anticipate change. If we take the eventual replacement of combustion engines with hydrogen or electrical engines as an example, then the industry needs to consider what future revenue generators would look like. To achieve this, consulting with experts and stakeholders to not only provide day-to-day support but also identify what needs to be done down the road ensures services remain relevant.

In addition, implementing a strategic change plan can help outline how the organisation will adapt and evolve to meet long-term goals whilst remaining competitive. The ability to envisage and articulate the future to employees and customers is essential.

Identify evolving service and supply chain needs

As technological change prompts the automotive industry to adapt, factoring in the eventual impact on services and the supply chain is critical. According to our C-Suite barometer findings, one of the biggest challenges in setting up operations in a new country is establishing local supply chains, cited by 40% of executives. For service companies such as Alltrucks, the ability to operate as an extensive European network is integral to coping with the increased flexibility needs that fleet transport services are likely to require.

Not only will the move away from combustion engines require a supply chain reset, but autonomous driving will eventually begin to reshape job roles within the transportation sector itself. Companies offering services to the transport sector will need to factor these changes into their supply chain needs and service offerings.

For example, with autonomous driving, fleet drivers will need to become logistic operators to optimise loads and delivery points. So, flexibility and connectivity of information will be key. It’s about reacting to evolving service needs and adapting quickly.

Adapt to economic shifts

Transitioning from a period of strong economic growth to a weak and uncertain trading environment is nothing new for the industry. However, strategic planning that takes into account economic downturns can help avoid knee-jerk reactions and decisions that can disrupt long-term goals. Technology can be employed to analyse company data to identify which service areas continue to generate growth and have the potential to improve and attract new customers.

Staying connected to industry players and listening to customers’ needs as the economic picture evolves helps ensure that your value proposition remains relevant and that new opportunities are identified. At the same time, it’s vital to ensure that the capacity to diversify is factored into the supply chain.

With Europe’s automotive sector deeply integrated into global supply chains, shifts in trade policy and new tariffs are having a direct impact on costs and operations. Many manufacturers are now rethinking sourcing strategies and localising production where possible. In this context, tailored tax and legal planning has become a key lever in managing risk and maintaining competitiveness.

Alexander Labus Partner, Forvis Mazars in Germany

Attempting to implement too many changes can often deter both existing and new customers. A focus on the quality-of-service provision that is flexible enough to adapt to changing customer needs is a more appealing value proposition than increasing services to a lower standard. 

Lean on technology

Increasingly, technology plays a vital role in helping companies adapt to the challenges they face. Technological expertise and access to data are now considered the lifeblood of a successful company. According to our C-suite barometer, IT transformation is the top strategic priority for the C-suite in the next 3-5 years, cited by 43% of executives. Technological know-how enables companies to deliver the speed and accuracy that customers now expect. Taking commercial fleet maintenance as an example, the most critical aspect of service provision is no longer price but the ability to keep fleets on the move rather than in the workshop. 

The use of technology can not only improve downtime periods through best-in-class diagnostics but also increase efficiency and connectivity between the customer, company and the supply chain. In addition, emerging technologies such as artificial intelligence (AI) are heralding a new era of connectivity across the entire ecosystem, which is slowly beginning to take shape.

Maintain compliance oversight

While growth may be the primary concern when contemplating an uncertain economic landscape, companies must keep up to date with tax and sustainability compliance obligations. Maintaining close oversight of evolving regulations ensures that attention from regulators is not misguided and that customers and stakeholders retain confidence.

For international enterprises, global tax obligations remain complex and require expert knowledge of both local and cross-border matters. New regulations are one of the top five factors likely to hold back growth (28%), according to our C-suite barometer findings. Sustainability regulation is another area that has a significant impact on the automotive industry and is also one of the top five C-suite strategic priorities, according to barometer findings. However, a mismatch between company and customer can slow down sustainability progress. While Alltrucks aims to ensure it works towards carbon-neutral goals, it is dealing with customers for whom changing an entire combustion engine fleet to more sustainable alternatives can be cost-prohibitive.

So, while the automotive industry may be moving at a slower pace, companies that can embrace sustainability regulations will continue to thrive.

As the transport sector begins to evolve and develop a more competitive and resilient platform, having a clear vision and keeping a start-up mentality will be vital.