Recent years have seen the global automotive industry grapple with an array of challenges including supply chain disruption, the ongoing transition to and subsequent slowdown in EV sales, evolving consumer requirements; and, most recently, escalating geopolitical tension and tariffs.
Other hurdles include a need to comply with 2030 net zero and sustainability targets (for manufacturers continuing to build petrol engine cars) and regulatory requirements related to new technologies such as connected and autonomous vehicles.
Labour shortages and a widening skills gap pose further challenges, as auto firms struggle to recruit employees with new and sought-after technical skills such as those related to EV technology, software, and data analysis.
Against this backdrop, many auto firms in Asia Pacific are reorganising operations, reducing headcount, and engaging in M&A activity and strategic partnerships; a process that is inevitably reshaping their commercial real estate requirements.
