Skip to Content

Automotive Industry Overview 2026: EV Growth, Critical Minerals, and Multi-Tier Supply Chains

A 14-page ETS deck on the 2026 automotive industry — four forces driving risk, the multi-tier visibility crisis, six top supply chain challenges, SAP cloud solutions for planning, execution, and sustainability, and a 90-day pilot to prove value fast.
September 28, 2026 by
ETS, Inc.
This resource is available as a PDF

Share a few details and ETS will unlock the full deck to view in your browser or download.

The automotive sector in 2026 balances slower, uneven traditional demand with rapid EV powertrain growth, intense cost pressure, and material-security risk around rare earths and battery-grade minerals. This deck explains how those forces raise forecast error and stress supplier tiers, and how SAP's cloud portfolio addresses visibility, planning velocity, JIT/JIS execution, supplier collaboration, and sustainability reporting.

It details the multi-tier visibility crisis — OEMs that can't see beyond Tier-1 suppliers and 20,000–30,000 parts per vehicle — and the six top challenges, then walks through the SAP answer: Ariba and Business Network for multi-tier collaboration; IBP for demand sensing, inventory optimization, and scenario simulation; SAP ERP Cloud with EWM and TM for JIT/JIS sequencing; and Product Footprint Management, commodity intelligence, and BTP extensions for sustainability and risk.

The deck compares Tier-1 and Tier-2 supplier needs and closes with a 90-day pilot for one assembly line — foundation, supplier onboarding, integration, and results — with a conservative target of 10% safety-stock reduction, a 3–5 point OTIF improvement, and 20–40% fewer manual order exceptions.

The full deck is available above as a PDF. For shorter editions see the "Automotive Industry Fact Sheet 2026: SAP Cloud Solutions for Automotive Supply Chains" and the "Automotive Industry Overview 2026: Executive Brief" in the Resource Library.

Automotive Industry Overview 2026: Executive Brief
An 8-page ETS executive brief on the 2026 automotive sector — the four key risk drivers, six top supply chain challenges, how SAP cloud solutions close the gaps, Tier-1 vs. Tier-2 considerations, reported results, and a 90-day pilot plan.