If the last couple of years provided a swift EV takeover of the market, then 2025 was no different, but on top of that, the whole automotive industry finds itself at a complex but yet fascinating crossroads.
For every CXO in this industry, it’s no longer about one trend; now it’s about the collision of several, which will force strategic adjustments over the next decade.
To make the point clear, let us go through the 2025 wrap-up for the automotive industry first before diving into the prognosis for 2026.
In my opinion, the simplest way to describe 2025 for the automotive industry is that it is the year of the “Three Great Convergences.”
1. Data and intelligence serve as a life-saving buoy.
Since EY reports that more consumers are moving back to combustion cars, and Chinese manufacturers are flooding emerging markets with gasoline vehicles, as reported by Reuters, it is quite a clear signal from the market that the idea of “EVs at any cost” that dominated the past years has hit a practical limit. This doesn’t mean we are going backwards because we have witnessed how the partnership between Ford and Renault emerged in hopes of competing with the Chinese manufacturers in small EVs and vans for Europe. Therefore, it is evident that the new focus for these strategies is to survive in a market that is shaped by tariffs and regional differences. This initiative is clearly governed not by the idea of pushing EV volume production at all costs, but by building profitable, targeted mobility solutions that fit each region. In other words, the classic mixed portfolio is back, but this time, it is driven by data and intelligence, as they present the only available option to optimize operations for profitability.
2. Software is the new automotive business.
Maybe it was music for the ears of every IT person to read the Capgemini report that 92% of automotive organizations believe they must become “software companies,” but for the CXOs in the automobile industry, that was a loud wake-up call. AI is no longer a cool feature that is nice to have; it has been positioned now as a core architecture enabler not only for manufacturing operations, like any other industry, but also in vehicle development processes such as personalized cabins as well as in vehicle systems such as battery performance optimization at the edge.
3. Autonomous mobility
The cooling down of the EV hype in Europe was counterpointed by the quiet advances of autonomous mobility. It was quite a surprise for me to see that Switzerland authorized self-driving cars in the Furttal Valley, as reported by swissinfo, which is a strong example of regulatory acceptance of autonomous mobility and the enormous efforts needed to catch up with autonomous mobility that is scaling at speed. Furthermore, Waymo’s fleet reaching around 2,500 vehicles and its new factory with Magna signal a shift from experiment to scalable operations that can explode in the following years if the idea itself proves to be acceptable to the general public. This trend is also confirmed by the planning of driverless ride-hailing by Stellantis and Bolt. The concept is no longer science fiction; it’s a new business line being built, step by step, in parallel to the traditional car business.
2026 Prognosis: The Year of Execution and AI-Driven Differentiation
Those three convergences from 2025 mean that every organization working in the automotive industry must adjust accordingly in a very agile manner. There is no need for 3-, 5-, and 7-year strategies that do not take these convergences into account. In 2026, mastering these convergences will determine whether an organization climbs to the top or eventually forgets about them.
Therefore, we must shift from comprehending these convergences to truly mastering them. Here are the three essentials I see:
1. Architect for AI
AI is not just another tool that will be added to the infrastructure. It is a new form of technology that happens to run and share the same infrastructure that our previous information technology runs on, but it has a different set of requirements that must be respected, whether in the organization’s infrastructure or on the vehicles themselves. This means designing hardware (like the Stellantis ‘AV-Ready’ platforms) and software stacks from the ground up to leverage embedded AI for perception, personalization, and predictive maintenance. The competitive edge of every player in the automotive industry will be in the proprietary data and unique experiences that they layer on top of their traditional product or service. So, for 2026 The question is no longer if you have an AI strategy; it is where your AI is creating irreducible value for the customer and your margin.
2. Master Ecosystem Agility
Serving on your own was a good dream of the past; now it is time to orchestrate partnerships, as owning supply chains does not qualify for guaranteed success. The best application of this rule is software. Your digital transformation must extend beyond your firewall to create seamless, secure data and value exchange with partners.
3. Embed Scenario Resilience
The twists we have experienced in 2025 prove without further doubt that multi-year plans based on single trajectories are now obsolete. Leadership needs continuous strategic foresight powered by data. This means that your data organization is the place where decisions will be made, and it is also where you can create multiple digital twins for your business strategy, enabling you to stress-test decisions in real-time.
2025 taught us that the industry’s transformation is non-linear, uneven, and accelerating. The companies that thrive in 2026 and beyond will be those that consider themselves integrated mobility architects. Companies capable of utilizing AI as their central nervous system, maneuvering through ecosystems with strategic agility, and constructing resilient organizations will gain a competitive edge in a rapidly evolving market.
The race is no longer about who sells or builds the most cars. It’s about who best orchestrates intelligence, both digital and strategic, across the entire value chain.
If you want a broader map of how these shifts in automotive fit into the wider transformation of work, families, and society over the next 30 years, you’ll find it in my book Life in the Digital Bubble. And if your organisation is ready to turn these insights into a concrete roadmap, you can learn more about my digital transformation and AI consulting services and how I support leaders in designing the next phase of their