Automakers face competition in China and integration of artificial intelligence: Gartner
The pace of innovation in China, while simultaneously managing the integration of artificial intelligence (AI), cybersecurity risks, and the complex transition to electric vehicles (EV) will be major challenges for global automakers in 2026, according to consulting firm Gartner, Inc.
The global automotive industry has entered 2026 amid growing uncertainty, with long-term predictability giving way to volatility. "After 2025, marked by profit warnings, tariff shocks, and slower-than-expected adoption of electric vehicles, scale and long-term planning are becoming irrelevant due to geopolitical tensions, supply chain instability, and rapid technological change," the organization notes.
While many manufacturers see AI as a path to greater flexibility, Gartner warns of an impending reality check as companies realize that their current AI capabilities offer fewer competitive advantages than expected, Kallanish notes.
"The automotive sector is experiencing a period of euphoria regarding AI, when many companies want to achieve breakthrough results even before creating a solid foundation in the field of artificial intelligence," says Pedro Pacheco, vice president of Gartner. "This euphoria will eventually turn into disappointment, as these organizations will not be able to achieve the ambitious goals they set for AI."
"China will remain the most complex and important market, and experts say that success in it increasingly determines global leadership," the consulting company notes. "Strategies such as "Made in China, for China", adopted by companies such as Volkswagen and Audi, can become a model for others. Electric vehicles are expected to become increasingly fashionable in Europe as battery costs decrease and more compact and affordable models become available, driven by new incentives in markets such as Germany."
At the same time, most automakers will reconsider their reliance on China in their supply chains, even if deep technological interdependence makes complete separation unrealistic. In these circumstances, Gartner comes to the conclusion that the winners in 2026 will not be large companies, but those that are flexible, fast, and organizationally adaptable.
Author: Svyatoslav Abrosimov
Kallanish.com