AMS/ABB Automotive Manufacturing Outlook Survey 2025: Cost pressures bite, but EV and Hybrid optimism persists

The annual AMS / ABB Automotive Manufacturing Outlook Survey 2025, now in its fourth year, offers a fascinating insight into the challenges and opportunities emerging within the automotive manufacturing space. Whilst many of the findings confirm well known themes that are widely discussed, to see them quantified within this survey powerfully demonstrates how those factors have evolved over time, and provides the invaluable insight, depth, breadth and nuance that only an expert audience survey such as this can provide. 

In today’s rapidly evolving automotive manufacturing landscape, maintaining a competitive edge is crucial for navigating challenges and seizing growth opportunities, making the insights gleaned from our recent annual survey invaluable.

About the survey

In October 2025, AMS partnered with robotics and automation experts  ABB Robotics to conduct a 4-week survey strategically designed to capture automotive manufacturers’ perspectives. With over 450 responses collected, of which more than 50% were from OEMs and Tier suppliers, this survey provides a comprehensive overview of the current state of play in automotive manufacturing, identifying the challenges facing the industry and future opportunities.

Here are some of the key takeaways:

1. Cost pressures, labour costs, and tariffs / trade restrictions are the leading challenges contributing to complexity 

The major challenges identified by the audience of automotive manufacturing experts were cost pressures. These included: Energy & material costs (34%), growing labour costs & skills shortages (30%), tariffs & reciprocal trade restrictions (29%), rapid innovation in AI and automation (27%) and supply chain disruption, parts shortages, & inventory management (27%).

Many of these leading challenges are overlapping and intertwined, especially, around tariffs, cost pressures, and supply chain disruption, and therefore have many similar characteristics and solutions.

2. Improving cost control, and automation & robotics the leading strategies 

In response to the challenges, improving cost control and tighter budget management (33%) came to the fore as the leading strategy. This was followed by Increasing investment in automation and robotics (31%), shifting to more flexible and modular manufacturing processes (29%), and accelerating digitalisation and data integration (26%).

We see digitalisation as an increasingly important strategy and tool to address a range of industry challenges, including navigating tariff barriers, helping to reduce costs, enhancing supply chain resilience, and better managing complexity. 

3. Electrification still presents strong growth opportunities

Despite a general industry perception that EV demand growth is slowing, and key investments being rolled back, the upward trajectory for EV growth remains positive at least according to the expert audience. For both passenger vehicles and commercial vehicles, growth is expected particularly for Plug-in Hybrid Electric Vehicles (PHEV), Hybrid Electric Vehicles (HEV), and Electric Vehicles (EV). 

However, the feasibility of achieving EV targets had a constant and similarly pessimistic outlook to the survey results from last year, with the leading response It’s going to be a real struggle (27%), followed by No, it’s impossible over that timeline (26%), and Yes but with some challenges (18%).

Nonetheless, despite the EU’s 2035 ICE ban (which is currently being re-examined by the EU, with possible exclusions for synthetic e-fuels) the target is just two vehicle development cycles away. Therefore, the optimism for EV growth rates appears to be because EVs are becoming easier and cheaper to build, despite the challenges of bringing battery/EV costs down, and raw material availability/shortages/price increases. 

For further details download the full survey report for exclusive insights into: 

• Manufacturing challenges
• Costs 
• Supply chains 
• Manufacturing complexity
• Manufacturing areas that will become significant 
• Benefits of smart factories 
• Challenges of smart factories 
• Labour and skills challenges 
• Specific skills shortages 
• Passenger vehicle powertrain outlook 
• Commercial vehicle powertrain outlook 
• EV production targets 
• Barriers to 100% EV production 
• Constraints to EV production 
• Feasibility of sustainable manufacturing 
• Sustainable manufacturing challenges 
• Production & sales volumes 
• Robotics & automation 
• Robotics types 
• Automotive manufacturing software 

Download the survey report here.

This survey was compiled in partnership with ABB

ABB is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries.