Regionalization & China Strategy

Geopolitical shifts and new market realities are driving a rethink of global automotive strategies. Instead of one-size-fits-all globalization, companies are localizing production and supply chains to boost resilience amid trade tensions and to capitalize on regional policies. For example, European automakers are “pushing for local supply chains amid geopolitical shifts and Chinese EV competition”, adopting nearshoring to reduce risk and cost. At the same time, China’s rise in electric and connected vehicle technology has intensified competition, forcing Western OEMs to up their game. Crafting a savvy China strategy – whether partnering with Chinese tech firms or differentiating products for that market – and building regional supply independence (in North America, Europe, etc.) have become critical. This theme combines high-level strategy with on-the-ground technical choices (like which battery chemistry for which region) to navigate a fragmented global landscape.