Featured Insights
hina’s automotive industry in 2025 will continue to be defined by fierce domestic competition, relentless innovation, and aggressive price cutting.
Led by brands such as BYD, XPeng, and Geely, Chinese automakers are pushing the boundaries of technology and affordability and challenging the dominance of international OEMs and suppliers.
Market dynamics have shifted, with declining market shares for foreign players, as Chinese companies dominate the electric New Energy Vehicle (NEV) segment and introduce features tailored to domestic preferences. These developments pose critical questions for international OEMs’ head offices about how to adapt, compete, and remain relevant in the world’s largest automotive market, where domestic NEV players are already designing, building and selling a new generation of intelligent and connected vehicles (ICVs).
This report explores the strategies that foreign automakers and suppliers must consider to navigate these challenges and maintain their footing in China’s increasingly localized and innovation-driven landscape.
Download the full article now!
Featured Insights
ow to retain top talents in turbulent times – observations from the German automotive industry
In the midst of transformation, OEMs and suppliers are under intense pressure to steer through fundamental changes in strategy, structure, culture and leadership.
Whether or not these changes can have the intended impact depends on the commitment and capabilities of their people. This raises critical questions for top management: What talent to retain, how to encourage them to stay, and how to develop them to thrive?
Download the full article now!
Featured Insights
he road ahead calls for action now. Faster distribution models such as direct sales are creating new responsibilities for OEMs, with marketing departments required to set up tactical campaigns in hours rather than days.
In this environment, it is imperative for marketing employees to generate powerful content at pace by improving their internal processes and tools, to drive sales more efficiently. Raising the pressure further, automotive manufacturers also face growing demand for content that appeals to different stakeholders, from customers, suppliers and dealers to their own employees. To meet these needs, OEMs are increasingly reliant on online platforms to engage with customers, streamline operations, and drive growth.
Download the full Insight now!
Featured Insights
he Most Powerful Tech Event in the World, CES was held in Vegas on Jan 7th - 10th themed around “Innovating the Future” with 140k+ attendees, 4500+ exhibitors and 6K+ media attending.
Waymo showcased its latest self-driving minivans equipped with advanced LIDAR and AI-driven systems; BMW unveiled the BMW Panoramic iDrive; Zeekr, Great Wall Motors, Honda, etc. brought their new models… There are so many things to write about, but I’d like to share my three observations:
AI everywhere, but full potential yet to be exploited
AI is definitely the no.1 key word at 2025 CES, not just for the automotive industry, but across all industries. However, I still have a few questions after seeing some examples across booths: what does AI really mean to automotive industry? Have we exploited the full potential of AI? I had a conversation with staff at Sonatus, who’s showcasing a few applications on AI, mostly on collecting data more intelligently, and I asked when can AI help make decisions? He smiled, “you read my mind, it’s on my product roadmap”. I am hopeful that AI will disrupt industries, including automotive, and the potential is yet to be explored. Looking forward to seeing more progresses every year.
SDV still a key topic but mainly showcases
Another key word in automotive industry is SDV, software-defined vehicle, which was the big theme for CES 2024. Now after one year, how much change does this bring to the industry? I’m not so sure. I have seen a lot of changes in the in-cabin experiences, such as the infotainment systems on Zeekr, Great Wall Motors and BMW vehicles. However, a true software-defined vehicle will bring in revolutions across the way of thinking, design of both software and hardware, organizational structure to support the change, as well as people’s mindset and company culture, which won’t be happening within just one year of time, and which will disrupt the industry in the future.
The rise of micro e-mobility and mobility in general
Along with the EV trend in the last few years, I have seen more applications of e-mobility from cars to other methods of transportation. E-bikes, e-scooters are not new to the mass market, as Segway-Ninebot, Bird, Lime, Xiaomi, etc. all brought their newest versions to the show. Besides, e-mobility has expanded to surfing boards, as showcased by Lift Foils, Radinn, Fliteboard and among others. What’s worth mentioning is the “land aircraft carrier” introduced by Xpeng Aeroht. I have seen “flying cars” or helicopters in the CES last few years, but mostly at the concept level, and this one is planned to start pre-sale by the end of 2025 and to be delivered by end of 2026. As someone passionate about future mobility, I’m always excited to see new applications in automotive and its expansion to other forms of mobility, and nothing can be more excited to see innovations at CES every year.
What’s your key takeaway out of 2025 CES? What surprised you most? What would you like to see but was not there? And what’s your projection of automotive industry in 2025 and beyond? Reach out!
Featured Insights
alling vehicle sales, with a drop of up to 18 percent in August 2024 alone is just one sign of the growing urgency for change facing OEMs in Europe¹.
Rising costs, shrinking margins, and the transition to electric vehicles (EVs) are significant challenges that also require immediate attention. And increasingly, these economic factors are deeply tied to the responsibilities of the Chief Technology Officer (CTO).
Download the full Insight now!
It is the first article from our series „R&D Efficiency“. Next publications will release insights and experiences from seasoned professinals sharing their view on success factors, possible shortcuts and mistakes to avoid.
Featured Insights
024 was tough, 2025 remains tough. There is news from Berylls by AlixPartners. Supplier experts Alexander Timmer and Jürgen Simon have taken a look back and ahead at the industry and in particular at the top 25 global players. Bosch and ZF are not included in the overview because the companies do not publish quarterly figures.
As anticipated in our analysis last year, 2024 began with a noticeable headwind for suppliers. The quarterly figures for Q1 to Q3 2024 confirmed the increasing challenges for the automotive industry.
And there is no short-term improvement in sight. Our experts forecast that 2025 will be as critical for suppliers as the pandemic crisis, with an increasing risk of insolvency, especially for small and medium-sized companies.
However, a look at the attached charts also shows that OEMs are also suffering from declining margins, despite a slight increase in revenue. They fell from 8.9 percent in 2023 to just 7.2 percent in 2024 – figures that suppliers are nowhere near. Their average margin in 2023 was 5.9 percent, falling to just 5.5 percent in 2024. However, many suppliers are not achieving this average, which makes it difficult or even impossible to operate profitably.
China, which remains the most important market for the automotive industry and its suppliers, is dampening business with a persistent real estate crisis and the resulting economic downturn. In future, China will not be able to maintain the high growth rates of the past and is expected to remain at an annual level of two percent, which is only slightly above the expected global growth in car sales. The threshold to stagnation therefore remains within reach here too. Above-average growth in record sales figures is a thing of the past.
The tariffs announced for 2025 on vehicles produced in China are further exacerbating the situation. At the same time, the pressure on margins in the EU for e-mobility is growing because the emission limits for new vehicles are becoming considerably stricter.
Featured Insights
ith Audi in China and Jaguar's global rebranding, we are currently observing how established brands are reacting to weakening sales by radically breaking with their tradition.
For this reason, we looked at the risks car manufacturers are taking with such a move and analyzed how other manufacturers are dealing with their heritage and incorporating it into brand names, communication and product design. Although heritage is generally an opportunity, it can also be a burden in some situations. The decisive factor is how the public and, above all, target customers perceive this.
In a very short time, we have seen two manufacturers in the automotive market turn their backs on parts of their brand and history and redefine them in an unusually radical way.
In November 2024, Jaguar launched a widely publicized rebranding: The font was fundamentally modernized and the classic visual Jaguar logos, the leaper and the growler, were swapped for a monogram – a development that has also been observable at numerous fashion brands in recent years. Jaguar seems to want to detach itself completely from its heritage. In the media, this approach has been received very critically.
Concrete plans from Audi also envisage a break with brand tradition: The German manufacturer has developed a sub-brand specifically for the Chinese market. Although it is called AUDI, it dispenses with the traditional four rings. The products that AUDI will sell under this brand from 2025 will be developed by Chinese partner SAIC and produced locally – a radical shift in value creation. By abandoning the four rings, AUDI is attempting to preserve its brand essence of Vorsprung durch Technik. This core should not be directly associated with the vehicles developed by SAIC. At the same time, they are consciously setting aside this claim in order to be able to reposition themselves as a brand in the Chinese market. A radical step, but one which is not only met with skepticism.
These examples illustrate that the topic of heritage can certainly be a burden for car manufacturers steeped in history. In critical situations, for example when sales figures plummet, there can be good arguments for turning away from (large) parts of its history.
Both brands see their future viability at risk: both Jaguar and Audi have been fighting – globally and especially in China – against a dramatic decline in sales for years. Jaguar’s market share has disastrously collapsed from a good two percent in the early 2010s to just 0.08 percent. Audi recorded a double-digit percentage drop in sales in China last year. The radical rebranding (coupled with a new vehicle substance) is intended to stop the downward trend, or at best reverse it, and shows that both manufacturers see their history as a burden rather than an opportunity – in the case of Audi, only in China for the time being. The change in brand image is the visible expression of a manufacturer’s turnaround for every customer. The aim is to create a fresher, younger and future-proof image in order to create a positive assessment of its own innovative ability and local proximity. With the concept car presented, Audi is already demonstrating that it is about far more than just a realignment of the brand. Jaguar has also announced a completely new all-electric product orientation and market positioning, while at the same time halting current production.
Despite all the criticism, Jaguar’s chosen path may well lead to success. It has the potential to tap into new target groups with its radical approach, especially in China. Jaguar may be able to reach customers who have not yet experienced the brand and its history. The provocative design of the first study gives a glimpse of how Jaguar will position itself as an expressive, modern status symbol. However, in a market dominated by domestic BEV manufacturers, entering the market will by no means be easy. At the same time, Jaguar must reinvent itself as a global brand and identify and largely recapture its target group in all regions. This is because traditional Jaguar customers have so far been rather negative about the brand shift. Jaguar is willing to accept losing them with the realignment of the brand.
Other car manufacturers show in a variety of ways how they link their history with the future and incorporate it into important touchpoints with the customer.
Mercedes-Benz has been incorporating its history into its communication for years: This includes regularly referring to itself as the inventor of the automobile or remaking iconic models such as the Vision One-Eleven. This trend is finding its way into the product lines for the first time: The G-Class is being extended by the all-electric EQG and Mini-G to form an entire product family. The iconic vehicle design is thus being further cannibalized, although the characteristics of these new models are far removed from the competencies of the original G-Class (which are irrevocably linked to the “G” product brand). This is not a harmless balancing act between preserving the heritage and expressing the future.
At Porsche, heritage is also heavily reflected in the product portfolio. The iconic design of the 911 is purposefully cited in every other production model from the manufacturer. Every customer, regardless of which Porsche model they buy, acquires a piece of Zuffenhausen sports car history. In the form of the 911 model series, Porsche often embeds its heritage directly into the current product portfolio via limited special models or homage equipment. Although this approach has been successful for many years, it is not a universal remedy: recent sales challenges – particularly in China – show that vehicle sales are not automatically a guaranteed success. Here, the racing victories of the past play no role at all with the often very young customers.
Heritage can be an opportunity and be woven into the growth and future history of a brand to create value. However, success requires an “organic” connection in the story that is understood by the customer. A strong awareness of one’s own origins, positive experiences in dealing with them and a clear strategic direction are therefore indispensable.
Particularly beyond the automotive industry, this combination of tradition and innovation in product and communication is a tried and tested recipe. Louis Vuitton pushes its heritage as a suitcase manufacturer on the one hand – in product lines, in the names of the products or with the iconic LV pattern. At the same time, they engage trend-setting designers such as Virgil Abloh and Pharell Williams to constantly reinvent the brand. Chanel recently ventured into the design of tech wearables – yet hardly a collection goes by without a reference to the world-famous Chanel tweed costume.
However, we are not talking about fashion brands here, but about tech companies – they must stand for innovation per se. So repositioning the brand and placing a clearer focus on innovation is not necessarily wrong. However, it is advisable not to completely throw away heritage as a trump card up the sleeve of a long-standing brand, but to weave it in in a meaningful and reinterpreted way. After all, it is the long-standing history of a brand that really sets it apart from younger players in terms of credibility. To completely turn away from this would be like throwing away potential for a unique selling point in a highly competitive market.
The examples above show different areas of action in which heritage can be further incorporated:
A radical change can help a brand on the brink of collapse to regain its economic momentum. Audi’s Chinese partner SAIC has already made a name for itself as the savior of a brand that was thought to have gone down – with its subsidiary MG, SAIC has breathed new life into a former British icon and achieved mid-single-digit market shares in the growing electric vehicle segment in core markets such as Germany in just a few years. Apart from the familiar octagonal logo, the MG brand has been left with little from the past.
The final verdict on the approach to heritage will be made by the end customers. They either punish the loss of trust and misunderstandings with their purchasing behavior – or they become advocates and (new) fans of the brand.
Featured Insights
n a significant advancement for the automotive industry, Berylls by AlixPartners proudly announces the launch of elyvate.ai, an innovative digital platform that fundamentally transforms how automotive task forces operate and deliver results.
This groundbreaking solution represents a leap forward in automotive project management, seamlessly integrating decades of specialized industry knowledge with state-of-the-art digital technologies to establish unprecedented standards of excellence in the automotive sector.
„Our vision is to make ourselves redundant,“ declares Dr. Ralf Walker, Partner und Managing Director of Berylls by AlixPartners at the outset of each product demonstration, exemplifying their unwavering dedication to maximizing efficiency and driving innovation forward. Born from the company’s rich history of successfully managing critical task forces across the globe, this platform now emerges as a comprehensive public solution, making expert-level task force management accessible to the broader automotive industry. Under the visionary leadership of distinguished industry veterans Dr. Ralf Walker and Peter Trögel, elyvate.ai tackles one of the most persistent challenges in task force management: transforming the traditionally cumbersome reporting process into a seamless, natural extension of project execution. This transformation is achieved through an extensive suite of sophisticated task management features, including intuitively synchronized list and kanban board views, a meticulously designed roles and responsibilities framework, and revolutionary one-click standardized reporting capabilities that eliminate administrative overhead.
Initial deployment has surpassed expectations, significantly reducing weekly administrative workload for organizations. This substantial time savings enables consultants to dedicate more attention to their essential responsibilities: ensuring the security of critical production components and enhancing product quality standards across automotive manufacturing operations. A particularly revolutionary aspect of elyvate.ai is its sophisticated shop floor integration capabilities, delivering real-time KPI updates and comprehensive performance analytics directly from the production environment. The platform’s advanced KPI Wizard, incorporating Berylls‘ extensive task force expertise accumulated over decades, enables teams to establish, monitor, and achieve their goals with unprecedented precision. The system’s flexible KPI updating capabilities – whether by shift, hourly intervals, or real-time monitoring – provide manufacturing operations with a level of operational visibility and control previously unattainable in the industry.
The evolution of elyvate.ai represents more than just a technological advancement; it embodies a strategic commitment to revolutionizing automotive project management for the future. The journey began with an innovative proof of concept within the Berylls Digital department, progressing through multiple iterations of refinement guided by extensive user research and real-world feedback. Through a strategic partnership with a specialized South African development firm, the company has established a dedicated team of experts focused on continuous platform enhancement and comprehensive consultant support, ensuring the solution remains at the cutting edge of industry needs.
For automotive manufacturing organizations grappling with the complexities of modern production environments, elyvate.ai delivers an unparalleled combination of industry-specialized project management capabilities and advanced shop floor integration features. The platform’s remarkable ability to optimize operational processes while upholding the highest standards of quality control establishes it as an indispensable tool in the arsenal of automotive task force management solutions, setting a new benchmark for excellence in the industry.
To explore the full range of capabilities and transformative potential of elyvate, please visit elyvate.ai
Featured Insights
he importance of software partnerships in Automotive
The automotive industry has long been known for pushing the boundaries of engineering and design. However, the car as we have known it is now being reimagined. As a consequence, OEMs are undergoing a profound transformation, where innovation is not defined solely by engine performance and efficiencies, but becomes focused on the complex software systems that will control the cars of tomorrow.
Vehicles are now defined by their software and digital capabilities, and OEMs must prepare for the new era of the SDV, in which seamless vehicle integration with other digital devices and ecosystems becomes the norm.
Download the full insight now!
Copyright Berylls by AlixPartners
