This finding reflects the industry’s position as the most disrupted for the second consecutive year, according to both recent data and wider industry developments.

AlixPartners’ 2026 Disruption Index highlights disruption as a constant presence in global boardrooms. Inflation, energy prices, geopolitical friction and cybersecurity continue to weigh heavily on decision‑making, even as labour and supply‑chain pressures begin to ease.

Nearly half of all executives report experiencing significant disruption and 80 percent express optimism about the promise of artificial intelligence (AI). However, CEO pressure continues to intensify. Forty‑five percent of CEOs fear losing their jobs and 85 percent say they require more personal and professional support, underscoring how demanding the current climate has become.

For automotive companies, these macro‑level challenges overlap with long product cycles and high capital requirements. Executives identify rising protectionism and shifting tariff regimes as leading threats.

Recent United States (US) trade policies have disrupted cost bases and supply routes while prompting retaliatory actions that have created a complex network of trade barriers. Analysts estimate that these tariff battles have already cost the industry billions and forced many carmakers to rethink production strategies, inventory decisions and model plans.

Although vehicle sales have shown resilience, analysts caution that persistent consumer uncertainty and ongoing policy volatility continue to challenge the sector. Some tariff pressures have eased, yet key markets remain exposed to fluctuating trade policies, slowing disposable income growth and broader macroeconomic headwinds.

Europe faces added complexity due to intensifying competition with both China and the US in the electric‑vehicle arena, where industrial policies and tariff structures increasingly shape global competitiveness.

Despite the volatility, automotive leaders see meaningful opportunity. Revenue growth is expected from software‑defined vehicles, autonomous features and AI‑driven offerings. Growth‑oriented companies are already leaning into AI adoption, business‑model transformation and geopolitical repositioning in order to harness disruption rather than resist it. However, long development cycles limit the speed at which new technologies can generate returns. Many companies are therefore using AI primarily to reduce operational costs rather than accelerate revenue expansion. (Source text)

In summary, today’s automotive leaders are navigating a challenging and rapidly shifting operating environment defined by rising tariffs, accelerating technological demands and strategic uncertainty. The winners are likely to be those capable of using software innovation, reconfigured supply chains and disciplined investment choices to convert disruption into sustained forward momentum.