IMAP Germany Automotive & Mobility Sector Report 2025 | Tariffs

Transforming Automotive & Mobility: Key Market Dynamics

The Automotive & Mobility industry is undergoing one of the most significant periods of change in its history. Electrification, digitalization, and evolving geopolitical conditions are reshaping global supply chains, investment priorities, and valuation trends.

The latest edition of IMAP Germany’s Automotive & Mobility Sector Report 2025 offers a comprehensive overview of the M&A environment, with additional insights from Capstone Partners - IMAP USA on how U.S. tariff policy is influencing costs, dealmaking, and strategic positioning across the sector.

The Growing Impact of U.S. Tariff Policy

In 2025, U.S. tariff measures have become a defining challenge for the global automotive ecosystem. Tariffs on raw materials are increasing pressure on cost structures for both OEMs and suppliers worldwide. As a result, companies are reassessing their supply chains, cross-border strategies, and long-term investment plans.

Market Highlights from the Report

Sector Performance & Transaction Activity

• The global Automotive market is projected to reach approximately USD2.9 trillion in 2025
• 64 M&A transactions were recorded in Europe between Q1–Q3 2025, compared to 69 during the same period in 2024
• Carve-outs now represent 30% of all transactions, signaling a heightened focus on core business operations as cost pressures rise

Valuation Trends

• Electric Vehicle OEMs continue to command a significant valuation premium
• Valuation multiples for automotive suppliers appear to have stabilized over the last 12 months
• Companies with strong technology positions continue to attract international interest

Tariff-Driven Disruptions

• U.S. tariffs of up to 25% on vehicles and parts have already resulted in USD12 billion in reported losses for global OEMs
• These costs are expected to escalate to USD41–52 billion over the next three years

Evolving Vehicle Demand

• Electric vehicle (EV) sales are projected to reach approx. 22 million units in 2025, with hybrids showing particularly strong growth
• Despite market challenges, EV OMEs continue to record a significant valuation premium while multiples for automotive suppliers seem to have found a bottom line over the last 12 months

Strategic Responses: M&A as a Tool for Adaptation

As the industry navigates cost volatility and policy uncertainty, M&A and strategic alliances remain essential tools. Companies are leveraging acquisitions to strengthen technology portfolios, streamline operations, and position themselves for long-term competitiveness.

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For questions or comments, please feel free to contact the IMAP Germany team.