Top 10 Tier 1 Suppliers in the Automotive Industry
Robert Bosch, Denso Corporation and Magna International ranked among the top Tier 1 suppliers in the automotive industry.
Other leaders in this classification were: Aisin Seiki Co, Hyundai Mobis, Faurecia S.A., Continental Corporation, ZF Friedrichshafen AG, Aisin Seiki Co., Hyundai Mobis, Lear Corporation and Valeo S.A.
Despite high barriers to entry in many product areas, as well as the highly capital-intensive nature of the global Tier 1 automotive supply industry, competition is fierce and intensifying from many different sources, according to Magna International.
For most of this Canadian company's operating groups, competition comes primarily from automakers and other "traditional" Tier 1 suppliers, including those in which one or more automakers may have direct or indirect investments.
However, with the increasing importance of electrification and electronics in the automotive value chain, several electronics and semiconductor companies have entered or expanded their presence in the automotive industry, becoming direct competitors of Tier One Suppliers.
In addition, Magna International adds, disruptive technology innovators are changing the competitive landscape of the automotive industry through the development of high-value product and service offerings, particularly in areas related to vehicle electrification, vehicle autonomy, new mobility. and connectivity.
Tier 1
As a result of these trends, some vendors seek to improve their competitive positioning by establishing strategic alliances, joint ventures, or collaborations with technology and software companies.
Finally, competition has also intensified as automakers have reduced the number of their Tier 1 Suppliers in relation to their strategy to increase the number and range of vehicles manufactured from high-volume global platforms.
Multiple Tier 1 vendors can produce some or many of the same types of components, assemblies, modules, and systems that we currently produce.
Based on global auto parts sales to OEMs in 2019, the top 10 Tier One suppliers globally were:
