CHINESE SUPPLIERS, RAW MATERIAL COSTS AND E-MOBILITY GROWTH SHAKE UP THE 2022 BERYLLS TOP 100 SUPPLIER STUDY

• The average profitability for the top automotive suppliers more than doubled in 2021
• Chinese suppliers recorded the biggest sales gains at 40 percent
• Raw material pricing reached record highs in 2021, depressing the industry’s profitability

DETROIT, Oct. 20, 2022 /PRNewswire/ — The top automotive suppliers saw significant growth in 2021 despite challenges from the ongoing pandemic, the chip crisis and record raw material costs, according to the 2022 Berylls Top 100 Supplier Study.

For the 11th consecutive year, Berylls Strategy Advisors analyzed the world’s 100 largest automotive suppliers in the areas of revenue and profitability. Unlike 2020, which was impacted primarily by COVID-19, 2021 was massively affected by the ongoing pandemic, the chip crisis and the intensified situation on the raw materials markets. Despite these challenges, many suppliers were able to report significant increases in sales and profits in fiscal year 2021.The 2022 study shows overall industry sales in 2021 will be just under $900 billion, about two percent below the all-time high of $917 billion in 2019, which indicates suppliers are approaching pre-pandemic levels.

“Despite continued pricing and supply chain challenges, suppliers still put together one of the industry’s best years,” said Martin French, Berylls U.S. managing director. “Overall, Chinese suppliers led the way with significant growth, while their German and Japanese counterparts lost some ground.”

Chinese battery manufacturer, CATL, appeared in the Top 10 for the first time after experiencing more than a 183 percent growth in 2021. The Top 10 includes five Asian and four European suppliers, with Bosch leading the rankings for the seventh straight year.

The Top 10 automotive suppliers include:

Additional insights from the 2022 Berylls Top 100 Supplier Study include:

• The contribution of Chinese suppliers to international sales is growing steadily, with a nine percent share in 2021 compared to five percent in 2018
• Raw materials prices chipped away at supplier profitability, with metal and plastics seeing significant price increases from 2020 to 2021 (copper +23.5 percent, steel +66.7 percent, aluminum +37.8 percent, and polypropylene +94.4 percent)
• E-mobility is now a major growth driver for the industry, with Bosch expected to increase its activities in this area by 500 percent by 2025.

Looking Ahead
While suppliers will face familiar threats the rest of 2022, Berylls predicts significantly greater changes to the industry and its Top 100 list over the next decade. Suppliers with a high proportion of combustion engines, such as Mahle, will likely be passed without any countermeasures. Electronics groups with strong software expertise, like Bosch and Continental, will grow disporportionately. Asian suppliers, especially Chinese companies, will gain importance through organic growth and acquisition.

“We will see a shift towards Asian auto suppliers due to the growing importance of electric vehicle battery manufacturing, IT and Infotainment,” said French. “And, if the Chinese companies can consistently continue their recent success in battery production, they will take the lead in the supplier rankings by 2028. A truly unimaginable feat just a few years ago.”

French added, “The road to success, however, remains rocky as the transformation that suppliers are going through demands high investment with payback over several years. That means supplier profitability in the early years will be much lower.”

The complete Top 100 Supplier Study can be found at www.berylls.com/en/category/top-100-en/ and includes additional breakdowns in sales and profitability, as well as a video showcasing key supplier moments and movements the past 11 years.

ABOUT BERYLLS GROUP
The Berylls Group’s services are fully dedicated to the automotive industry. Our global experts understand the industry’s key challenges and are developing ways to achieve sustainable success in the automobility eco system. Our professionals, using innovative & digital strategies are networking across our four specialized units to offer our clients end-to-end support, from strategy development to implementation.  For more information, visit https://www.berylls.com/en/.

SOURCE Berylls Strategy Advisors

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