Shifting gears

: German OEMs and the rise of non-automotive competitors

Abstract

This dissertation examines the competitive dynamics between German Original Equipment Manufacturers (OEMs) and non-automotive entrants in the evolving global automotive market. As the automotive industry undergoes a period of significant transformation, driven by the adoption of electric vehicles, digital technologies, and autonomous driving, new nonautomotive entrants are leveraging their expertise in software, artificial intelligence, and consumer electronics to challenge the established positions of German OEMs. This research applied a mixed-methods approach, combining qualitative insights from expert interviews and quantitative data from a consumer survey, with the objective of identifying the factors that enable German OEMs to remain competitive. The analysis identified engineering excellence, brand reputation, and premium market leadership as the key strengths of the German automotive industry, while also highlighting significant challenges, including slow innovation cycles, high costs, and skills gaps. Non-automotive entrants demonstrate superior cost competitiveness, agile supply chains, and customer-centric innovations, which collectively present a significant challenge to traditional OEMs. The findings emphasize the importance of dynamic capabilities, customer-focused innovation, and cost-efficient strategies for German OEMs to maintain competitiveness. The results of this research provide valuable insights for industry stakeholders, underscoring the need for adaptability and collaboration in a rapidly transforming market landscape.

Date of Award	29 Jan 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Peter V. Rajsingh (Supervisor)