Auto Supply Chain Risks Have Escalated
New findings show limited availability of critical materials could impact vehicle manufacturing costs and production.
Updated on Sept. 30, 2026 in Auto Parts
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A new industry report has identified a high supply concentration score of 4.6 out of 5 for key automotive materials like semiconductors and gallium. This vulnerability poses potential challenges for global automakers navigating the transition to electric vehicle production.
Why it matters
Electrification has significantly increased vehicle reliance on complex power electronics, putting automakers in direct competition with AI and data center sectors for limited resources. Europe currently lacks the domestic processing capacity and suppliers required to mitigate these concentration risks.
Supply concentration is currently rated at 4.6 on a five-point scale, while competition for essential materials has risen by 15% due to the transition toward electric vehicles. Automakers currently account for 17% of total semiconductor demand.
The players
EY
A global professional services firm that provides auditing and supply chain consulting to major industrial sectors.
European Automobile Manufacturers' Association
The trade organization representing the interests of major European vehicle manufacturers regarding regulation and policy.
Nexperia
A semiconductor manufacturer specializing in power electronics and chips, which experienced a supply crisis in 2025.
Volkswagen
A major global automotive group currently planning to deploy autonomous electric microvans.
Stellantis
A large multinational automotive manufacturing corporation aiming to produce autonomous vehicles for ride-sharing services.
The details
The industry analysis evaluated ten essential materials against six specific supply constraint factors, highlighting heavy reliance on specific regions for refining. Vulnerable inputs include silicon, tungsten, wiring harnesses, and neodymium-iron-boron magnets. The transition to electric platforms requires more sophisticated components, which intensifies the struggle for parts against other high-tech industries.
Timeline
2016 served as the baseline year for calculating the 11-fold rise in gallium prices.
October 2025 marked the occurrence of a significant supply crisis for Nexperia.
September 2026 is the date the EY analysis was published.
The Home Front
The current supply concentration challenges follow the precedent of the 2021-2022 global chip shortage that disrupted vehicle availability. This shift suggests that the automotive industry is entering a period where hardware scarcity remains a structural constraint on new vehicle production.
Car owners should be aware that production constraints may lead to longer wait times for specialized repairs or new vehicle orders. If you are currently in the market for a new vehicle, research model availability to determine if current supply chain shifts are affecting your preferred brand.
The takeaway
Supply chain concentration has reached a critical level that continues to influence the cost and availability of modern vehicle components. Keep records of your vehicle maintenance history to help service professionals identify parts more efficiently if supply delays persist.
Further reading
Learn more about the latest developments in Auto Parts as the industry evolves.
Source note: This article includes information reported by Euronews English.
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