Insights from the executive search experts of Automotive Practice Group of InterSearch Worldwide
“At our recent global Automotive Practice group meeting, we examined pivotal trends steering the global automotive industry. Drawing on market intelligence gathered by our regional sub-leaders from local InterSearch experts of the Automotive industry, we encourage companies to leverage our insights, securing the optimal talent to navigate and excel in this dynamic landscape.”
Picture of Widukind Baier, Global Leader of Automotive Practice Group of InterSearch Worldwide
Americas
While the United States remain the powerhouse driving the automotive industry in the Americas, it’s imperative not to disregard Mexico’s pivotal role, marked by its contribution of 3.6% to the GDP and employment of over a million people. Globally, Mexico ranks 4th in auto parts production and 7th in passenger vehicle manufacturing yet faces challenges in infrastructure, green energy, and security. Notably, the country is a major exporter to the U.S., Canada, and Germany, with over 1.9 million units shipped this year. Additionally, there is a noteworthy surge in sales of 10 new Chinese brands, capturing a market share growth from 5.7% to 19.4%, and electric vehicles (EVs) represent 4.5% of total light vehicle sales.
Looking ahead to 2024, the United States anticipates a subdued year, except for a 21% growth in EV sales, while Latin America experiences a decline, particularly evident in Chile’s 28.8% drop in 2023 sales. Market dynamics in Mexico include the ongoing allure of nearshoring, drawing interest from Chinese OEMs like GWM, BYD, Changan, Chirey, JAC, and MG. However, Tesla’s plans for a gigafactory in Monterrey have decelerated. McKinsey forecasts a remarkable sixfold global growth in EV demand by 2030, signifying transformative shifts in the automotive landscape.
Picture of Malena Juárez, Regional Manager of Automotive Practice Group of Americas Region
Asia Pacific 
In the dynamic automotive landscape of the Asia Pacific (APAC) region, the top three companies—Toyota, Honda, and Hyundai—stand as industry giants. China leads the global market in sales units, reporting 2.58 million units in August 2023, followed by the U.S., India, and Japan. India, contributing 49% to the country’s manufacturing GDP, achieved industry revenue of USD 104.8 billion in FY 2023, securing its position as the world’s third-largest automotive market. The Indian government’s emphasis on sustainable transportation is evident in the notable achievement of selling 8,47,439 electric vehicles (EVs) by August 2023, reflecting a year-on-year growth of 209.17%. With a goal to double the industry size to USD 180 billion by the end of 2024, India is strategically positioned for growth, underscored by initiatives like the Indian Semiconductor Mission and the Automotive Mission Plan 2026.
In South Korea, challenges loom in the form of economic volatility, consumption constraints, and an aging population. However, the automotive industry anticipates sustained external growth, driven by a stable order backlog and product improvements. Meanwhile, China, holding a remarkable 36.9% market share for EVs, faces the challenge of cost control. Noteworthy trends across the region include India’s focus on reducing import reliance through the Indian Semiconductor Mission and South Korea’s response to the growing demand for LFP batteries in the EV market. China, having surpassed Germany as the world’s second-largest automobile exporter, continues its transformative journey from product innovation to category innovation, emphasizing integration between mobile phones and vehicle systems. The APAC automotive sector, marked by its challenges and trends, remains a focal point of global industry dynamics.
Picture of Binita Ghosh, Regional Manager of Automotive Practice Group of Asia Pacific Region
Central Eastern Europe 
The Central Eastern European (CEE) automotive sector retains its critical role in the economies of countries such as the Czech Republic, Slovakia, Hungary, and Romania, contributing significantly to exports, GDP, and employment. Despite a slight post-Covid dip, the CEE region surpassed Germany in nominal car production in 2022. The CEE Supply Chain Automotive Conference 2023 addressed ongoing supply chain challenges, emphasizing that while irregularities persist, the worst may be behind. Discussions centered on the automotive industry’s shift from evolution to revolution, the need for fewer EU regulations, and the sector’s preparedness for electromobility, with a focus on customer acceptance.
In terms of trends, the CEE region sees a nuanced approach to globalization, with signs of the concept of “Friendshipshoring” supply chain networks targeting economically and politically aligned countries. Diversification of suppliers, especially in Asia, remains pivotal. However, challenges arise from the shift to electric vehicles (EVs), with notable first movers like US-based Tesla and Chinese “Big 4” actively penetrating foreign markets. While German firms, key investors in CEE, are slower to adopt EVs, the tight and less flexible labor market in CEE countries, coupled with public opposition to EVs driven by concerns over pricing and job losses, pose threats.
Amid these challenges, opportunities emerge for CEE to position itself as a counterbalance to Chinese dominance by supplying batteries and remaining a hub for car manufacturing, leveraging resources like lithium in the Czech Republic.
Picture of Igor Svatos, Regional Manager of Automotive Practice Group of CEE Region
Europe North & West
In the Europe North & West, the automotive industry holds a significant economic footprint, constituting over 10% of manufacturing jobs within the EU. Operating 213 factories in the EU (car assembly, battery, and engines), automakers play a pivotal role in the region’s industrial landscape. Despite a global increase of nearly 6% in vehicle production in 2022, Europe stood out as the only region experiencing a decline. However, the first three quarters of 2023 witnessed substantial growth in the EU car market, with a remarkable 16.9% increase, totaling eight million registered units. Notably, the market, while on an upward trajectory, remains 20% below the pre-COVID pandemic levels observed in 2019. The robust performance is evident across major markets, including Italy, Spain, France, and Germany, with gains ranging from 14.5% to 20.5%.
In the evolving automotive landscape, there is a notable shift in consumer preferences reflected in the increasing market share of battery-electric cars. September marked a significant milestone with a 14.8% market share, surpassing diesel for the third time in the year and securing the third-most-preferred choice among new car buyers. The proportion of EVs varies greatly from country to country within Europe, with Norway standing out with a share of almost 80% of EVs in cars sold in 2022. Hybrid-electric cars maintained their strong position, capturing 27.3% of the market, while petrol cars, still the top choice, saw a slight decline from 35.3% in September 2022 to 34.1% this year. These trends underscore the transformative dynamics of the automotive industry in the region, with electric and hybrid options gaining traction among consumers.
Picture of Francesco Righi, Regional Manager of Automotive Practice Group of ENW Region
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