H&Z Automotive Pulse Check H2/2025
Automotive industry sentiment H2/2025: rising cost pressure, fading optimism and clear priorities around profitability, technology and resilience.
Pressure, Cost Focus and Strategic Reprioritisation
The European automotive industry remains under sustained pressure from geopolitical uncertainty, regulatory complexity, and weakening demand. Compared to earlier editions, optimism has declined noticeably. Still, more than 75% of industry leaders surveyed by H&Z report a neutral to positive outlook for 2025, reflecting a strong focus on stability and short-term resilience.
Three strategic priorities are currently shaping the industry agenda:
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Cost & Profitability Excellence – Product cost reduction and margin protection have become the top priorities as companies respond to electrification-driven cost pressure and volatile markets.
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Technology Catch-up – Electrification and software-defined vehicles (SDV) remain the dominant technology trends, with China further extending its lead in innovation, speed, and cost.
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Operational Resilience – Automotive players are strengthening supply chains, preparing for tighter regulation, and selectively exploring AI use cases to stabilise operations and improve efficiency.
