Doomed To Grow?

Suppliers at a crossroads

Automotive suppliers are experiencing strong growth and good profitability throughout the world; however, small and medium‑sized enterprises find themselves in a dilemma.

The financial performance of the worldwide automotive supplier industry is excellent. On average, the reviewed companies earn an average EBIT margin of seven percent and have an average equity ratio of 40 percent. Companies from the United States are especially profitable, while automotive suppliers from Germany and China are experiencing the highest rates of growth in the world. 


German suppliers show the biggest growth dynamic globally – but are only average with regards to profitability

Revenue growth and EBIT-Margin1 for relevant countries

Explanatory note: Adjusted to currency effects

1. EBIT in % of revenue

Source: Oliver Wyman Supplier Financial Benchmarking 2016

Doomed To Grow?