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28 October 2026

How digital tech and geopolitics drive a new automotive hierarchy

Boardrooms must master AI, software, talent shortages and a shifting China‑centric OEM landscape to stay ahead.

How digital tech and geopolitics drive a new automotive hierarchy

The automotive world is no longer defined by a single disruption. Artificial intelligence, software-defined vehicles, evolving consumer expectations, and geopolitical turbulence now intersect, turning continuous change into the everyday operating model for every executive. A recent global poll that gathered over 775 senior leaders from original equipment manufacturers, suppliers, dealers and mobility service providers confirms that the biggest gap between industry leaders and laggards is not technology alone, but the clarity with which they translate many simultaneous pressures into decisive action.

Technology as the primary competitive lever by 2035

More than half of the respondents (51%) anticipate that software and digital technology will become the chief source of differentiation for their firms by 2035. Close behind, 49% already consider their over-the-air update capability and software-defined products as entrenched parts of the portfolio. Yet only 36% of AI-related projects have moved past the pilot phase, and a striking 92% of companies need at least twelve months—often over two years—to roll out a new digital or AI function across the enterprise. These figures underline a paradox: while the strategic importance of software is clear, the ability to execute at scale remains a persistent bottleneck.

Regional investment patterns and the rise of ecosystems

Investment intensity varies by geography. In the Asia-Pacific (ASPAC) region, 57% of executives report significant spending on AI and emerging tech, compared with 52% in Europe and 48% in the Americas. ASPAC also leads in integrating autonomous-driving and ADAS solutions (52% versus 44% in other regions) and in establishing AI governance frameworks (50% versus 45% in Europe and 39% in the Americas). Beyond internal capabilities, the survey highlights the growing relevance of external partnerships: the share of value created through ecosystems is expected to climb from 30% today to 44% within three years, while trust in connected features is viewed by half of the respondents as a decisive factor for winning future business.

China’s accelerating dominance in the OEM arena

Geopolitics is reshaping the competitive map. Nearly half of the executives (48%) forecast that six of the world’s ten leading OEMs will be headquartered in China by 2035. The country’s rapid advances in electrification, software platforms and digital services are perceived as the backbone of this shift. Analysts link China’s ascendancy to its ability to blend traditional manufacturing strength with cutting-edge intelligent electronics and AI-enabled services, signaling a move away from pure hardware competition toward a broader, technology-centric value pool.

Talent transformation: the new language of automotive jobs

The same momentum that drives technological change is redefining the workforce. A study commissioned by Geely and conducted by Youtrend shows that, in the next three years, one in two automotive firms plans to recruit new specialists for software development and application engineering. Additionally, 47% are looking for experts in sustainability and energy management, while 45% seek professionals to digitise production processes. In Italy’s southern region of Puglia, talent retention is a critical issue: 31% of locally trained mechanical engineers have already moved to the North, and another 5% work abroad, draining a sector that employs roughly 30,000-40,000 people. The loss of expertise threatens the region’s ability to keep pace with the rapid evolution of powertrains, mechatronics and industrial automation.

Education, innovation hubs and the future dealership

Innovative collaborations are emerging to bridge the skills gap. The University of Bari’s LUM campus partnered with Maldarizzi Automotive on the AUTOBOTS project, a pilot exploring the “dealership of the future” through artificial intelligence, Digital Twin modelling and process automation. The initiative demonstrates that digital transformation is not confined to factories; it reshapes sales, after-sales support and customer interaction. Industry voices from Confindustria Bari-BAT, Michael Page Executive, Engineering Group and Almaviva stressed the need for a hybrid talent pool—technical know-how coupled with strategic thinking and continuous learning. According to Marco Santucci of Jameel Motors Italia, fostering closer ties between academia and manufacturers will be essential for nurturing the next generation of automotive innovators.

Overall, the data paint a picture of an industry where software, AI and ecosystem trust are the new currency, where China is poised to host a majority of leading OEMs, and where the race for digitally-savvy talent is as decisive as any engineering breakthrough. Companies that achieve crystal-clear vision and can translate it into rapid, ecosystem-driven execution will define the next era of mobility.

Author

James Whitfield

James Whitfield grew up in Manchester watching Sunday football, then carved a career covering Premier League weekends and F1 paddocks. Knows the difference between xG noise and signal.