What’s keeping automotive leaders up at night? 

Automotive engineering is being reshaped by intense competition, rising costs, software-defined vehicles, AI, supply chain disruption, and growing geopolitical uncertainty. Established OEMs and suppliers must accelerate innovation, reduce cost, and bring vehicles to market faster — while maintaining safety, quality, and regulatory compliance. 

The Automotive Engineering and R&D Pulse 2026 provides a practical, benchmark-driven view of how automotive leaders are responding to this new reality — and where execution gaps remain. 

Based on insights from 200 senior automotive engineering leaders globally, the report explores how organizations are building agility, scaling AI and digital technologies, and rethinking global operating models to compete in a faster, more software-driven industry.  

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Who this report is for 

This report is designed for: 

  • Automotive engineering and R&D leaders 
  • OEM and Tier 1 executives 
  • Product development, manufacturing, and operations leaders 
  • CIOs, CTOs, CDOs, and digital/AI leaders 
  • Supply chain, quality, and compliance executives 
  • Automotive C-suite decision makers 

If you are responsible for reducing engineering cost, accelerating vehicle development, scaling AI, or building more resilient automotive operating models, this report is for you. 

Why read this report 

This is not a vision piece. It is a data-driven view of how automotive engineering organizations are acting today to stay competitive in a market being transformed by new entrants, software, electrification, AI, and global volatility. 

You’ll discover: 

Why competition from new players is now a defining pressure 

Automotive leaders see competition from new and non-traditional players as their top ER&D threat. New entrants are challenging established OEMs on cost, speed, software capability, and manufacturing agility.  

How cost and time-to-market pressures are reshaping engineering 

Eighty-nine percent of respondents say costs have increased over the past three years. Many now believe they must reduce costs by 15–20%, cut design and development time by 10–15%, and reduce production ramp-up or deployment time by 5–10% over the next two to three years to remain competitive.  

Why agility has become an engineering priority 

Automotive organizations are investing in digital tools, scenario modeling, supply chain diversification, and product redesign to respond faster to volatility. The report shows how agility is becoming essential to absorb shocks without compromising cost, compliance, or delivery.  

How AI can accelerate automotive engineering — and why scaling remains hard 

AI is expected to transform maintenance, research, compliance, manufacturing, design, simulation, and testing. But leaders also identify major barriers to scaling AI, including integration with existing systems, workflow challenges, reliability concerns, and talent shortages. 

Why digital foundations matter 

The report shows that AI, agility, and global delivery all depend on modern, integrated digital foundations. Digital continuity, standardized data, cloud-native platforms, DevOps, and digital twins are becoming essential to faster, safer, and more distributed engineering.  

How global operating models are becoming strategic 

Outsourcing is moving beyond tactical cost reduction. Automotive organizations are increasingly using centers of excellence, performance-based outsourcing, build-operate-transfer models, and external technology partnerships to access talent, scale capability, and accelerate innovation.  

What automotive leaders should do next 

The report sets out four practical recommendations: take a digital-first approach, create ecosystems to embrace new technologies, make AI business as usual, and use outsourcing as a strategic lever for high-value work.  

Click to read Automotive Engineering and R&D Pulse 2026

Read the full Automotive Engineering and R&D Pulse 2026 report to discover how automotive leaders are reducing cost, accelerating innovation, scaling AI, and building more agile engineering organizations. 

Click to read Automotive Engineering and R&D Pulse 2026