Editor's letter

The auto industry has been through a rather tumultuous year. Markets and business sentiment have swung widely amid the impact of trade tariffs and scrambles to react to the rapidly changing international business landscape. For an industry such as automotive, with its extended international supply chains, the impacts have been acute – particularly as the OEMs have, in many instances, opted to absorb the higher costs rather than immediately pass them on. The pressures and the willingness to pass them on will be something to keep an eye on in 2026.  

Automakers and suppliers have also had to navigate the uncertainties that come with the energy transition. In the US, the Trump administration abruptly removed incentives for electric vehicles and the market responded. The Chinese OEMs have been pushed into aggressive overseas expansion strategies (see our analysis of Geely in Europe) and we’re seeing the fruits of that across the world, where they are intensifying competition – particularly in electric vehicles. Even as companies look to protect their supply chains, reduce costs or do more in-house, collaborative strategies are firmly in the mix. The next year is going to be quite a rollercoaster, plenty of uncertainties and variables in the mix again. It was ever thus. Happy reading!

David Leggett, editor