Post by Daniel Steiner

In Automotive M&A, 𝗼𝗽𝘁𝗶𝗼𝗻𝗮𝗹𝗶𝘁𝘆 is becoming the 𝗻𝗲𝘄 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗮𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲. Automotive M&A is becoming less about size alone — and more about 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗳𝗹𝗲𝘅𝗶𝗯𝗶𝗹𝗶𝘁𝘆. Buyers are no longer looking only for “pure EV” exposure. They are looking for 𝗮𝘀𝘀𝗲𝘁𝘀 𝘁𝗵𝗮𝘁 𝗰𝗮𝗻 𝗳𝗹𝗲𝘅 𝗮𝗰𝗿𝗼𝘀𝘀 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗽𝗮𝘁𝗵𝘄𝗮𝘆𝘀: ICE, hybrid, electric, and eventually autonomous mobility. At the same time, the M&A market remains disciplined. 𝗢𝘃𝗲𝗿𝗰𝗮𝗽𝗮𝗰𝗶𝘁𝘆, 𝗺𝗮𝗿𝗴𝗶𝗻 𝗽𝗿𝗲𝘀𝘀𝘂𝗿𝗲, 𝗮𝗻𝗱 𝘂𝗻𝗲𝘃𝗲𝗻 𝗘𝗩 𝗮𝗱𝗼𝗽𝘁𝗶𝗼𝗻 are forcing companies to reassess portfolios, footprints, and capital allocation. A few key themes are emerging: ➡️ Overcapacity is moving portfolio reviews up the agenda Companies are taking a harder look at which businesses create long-term value — and which ones tie up capital. ➡️ Divestitures are becoming a funding tool for future growth Selling non-core assets can create room to invest in strategic priorities. ➡️ Targeted investments are reshaping software-led mobility Software, data, electronics architectures, and digital services are becoming increasingly central to deal activity. ➡️ Regional dynamics are influencing deal strategy Regulation, demand patterns, production economics, and supply chain resilience all shape where and how deals get done. ➡️ Optionality matters more than a pure EV bet In a transition moving at different speeds across markets, flexible business models and adaptable assets are gaining value. The implication for automotive M&A is clear: Dealmakers need to be selective, pragmatic, and forward-looking. Winning transactions will not simply add scale. They will improve the quality, flexibility, and resilience of the portfolio. The priority should be deals that release capital, provide access to critical capabilities, strengthen regional positioning, and create optionality across an uneven EV transition. Read our mid-year M&A outlook: https://pwc.to/4oqm32E #PwCDeals #IndustryTrends #automotive #hybrid #electric Tobias Blaser Harald Wimmer 哈拉尔 Marc Wintermantel Henning Rennert Stefan Graml Katherina Gasser Raimund Wolf Philipp Gebhard Gentaro Kobayashi Sven Heinemann