Innovation at Its Finest: Meet the Top 12 Automotive Engineering Services Companies

Automotive engineering services are referred to the design, development, testing, and manufacturing of automotive systems and components.

Here are the 12 prominent companies serving this business vertical-

Harman International

Market Position or History

In 2020, Harman acquired Savari, a company that specializes in vehicle-to-everything (V2X) communication technology for connected cars. This acquisition allowed Harman to expand its capabilities in the V2X space and provide its customers with more advanced and secure connected car solutions.

Business Overview and Strategy

The company was established in 1980 by Sidney Harman and Bernard Kardon. Its headquarters are located in Stamford, Connecticut, United States. It designs and engineers connected products and solutions for numerous industries including automotive and consumer electronics, among others.

Harman International aims to create products and solutions that enhance people's experiences by seamlessly integrating technology into their daily lives. It strives to design and engineer innovative products that leverage the power of connectivity to make people's lives more enjoyable, productive, and secure.

Strengths

• It has a strong brand recognition in the audio industry.
• The company has a wide range of products and solutions for various industries.
• It has immense expertise in developing connected technologies and solutions.
• It has a global reach and presence in over 70 countries.

Weaknesses

• It depends on a few key customers for a significant portion of revenue.
• The company is vulnerable to economic downturns and changes in consumer spending.
• It faces intense competition in the automotive and audio industries.
• It relies on external suppliers for critical components and materials.

Continental AG

Market Position or History

In 2020, Continental acquired Kathrein Automotive, a leading supplier of antenna systems for vehicle connectivity. This acquisition allows Continental to expand its expertise in vehicle-to-everything (V2X) technology, which enables communication between vehicles, infrastructure, and other devices.

Business Overview and Strategy

With is headquarters in Hanover, Germany, the company was established on October 8, 1871. It specializes in producing tires, brake systems, interior electronics, and other components for vehicles. The company is recognized as one of the world's leading automotive suppliers, with operations in over 60 countries.

Continental AG's vision is to be the leading technology company in the automotive industry, providing innovative solutions to make mobility safe, efficient, and comfortable. It aim is to develop cutting-edge technologies that meet the demands of the rapidly evolving automotive market, while also addressing societal challenges such as reducing emissions and enhancing road safety.

Strengths

• It strongly emphasizes on research and development for innovative technologies.
• It has strengthened its partnerships with major automotive manufacturers.
• It has a diverse product portfolio in the automotive sector.
• It has an extensive distribution network.
• It focuses on enhancing the quality and reliability of its products.

Weaknesses

• The company depends on the automotive industry for a significant portion of its revenue, making it vulnerable to market fluctuations.
• It has limited diversification into other industries.
• It has high fixed costs due to heavy investment in R&D.
• The company is facing an increased competition from emerging markets.
• It has a slow response to changing market trends and consumer preferences.

Bertrandt AG

Market Position and History

In 2020, Bertrandt announced a joint venture with Bosch, one of the world's leading technology companies, to develop and manufacture components and systems for the automotive industry. The joint venture, called Bosch Car Multimedia Electronic Technology (Suzhou) Co., Ltd., will be headquartered in Suzhou, China and will focus on developing innovative solutions for the rapidly evolving automotive market.

Business Overview and Strategy

The company has established in 1974 with its headquarters located in Ehningen, Germany. It is know for providing development services to various industries, including automotive, aerospace, and mechanical engineering. The company’s primary services include product design, prototype construction, testing and validation, and series production support.

Bertrandt AG is striving to become a leading partner for innovation and development in the industries they serve. It focuses on delivering high-quality, cost-effective solutions to their customers while reducing its carbon footprint through the use of renewable energy sources and the implementation of energy-efficient technologies.

Strengths

• It is environmentally responsible.
• It offers a broad range of engineering and technology services.
• It has a diversified consumer base.
• It has long-term relationships with a diverse range of customers.

Weaknesses

• The company’s business operation is primarily concentrated in the Europe region.
• It has limited brand recognition outside of the automotive and aerospace industries.
• It operates in a capital-intensive industry, making it highly vulnerable to financial loses.

Capgemini Engineering

Market Position or History

In 2021, Capgemini Engineering announced the acquisition of Engineering3D, a French company specializing in engineering and additive manufacturing. The acquisition strengthened Capgemini's capabilities in 3D printing and expanded its offerings in the aerospace, defense, and industrial sectors.

Business Overview and Strategy

The company has founded by Hubert Martigny and Alexis Kniazeff in 1982. Its headquarters are located in Paris, France. It offers consulting, design, and engineering services to clients in various industries, including aerospace, automotive, telecommunications, and energy.

Capgemini Engineering aims to be a leader in engineering and digital technologies, helping its clients to navigate the complex and rapidly evolving technological landscape.

Strengths

• It has a strong commitment to sustainability and corporate social responsibility.
• It has its prime focus on digital transformation and innovation.
• It has robust quality management systems.
• The company has immense expertise in emerging technologies such as artificial intelligence, blockchain, and IoT.

Weaknesses     

• It is highly vulnerable to data breaches and cybersecurity threats.
• It has the risk of exposure to geopolitical conflicts in various regions.
• It faces the complexity of managing a large and diverse global workforce.
• It witnesses cutthroat competition from other global engineering and technology service providers.

Robert Bosch GmbH

Market Position or History

In June 2022, Robert Bosch GmbH announced its plans to acquire MoTec group to mark its entry into the motor sports industry.

Business Overview and Strategy

Established on November 15, 1886, the company has its headquarters in Gerlingen, Germany. Robert Bosch is the founding father of its organization. It is recognized as one of the world’s leading providers of automotive components, industrial technology, and consumer goods.

The primary vision of Robert Bosch GmbH is to improve people's quality of life through innovative technology solutions that are sustainable and environmentally friendly. It is also committed to sustainability and social responsibility, and has set ambitious targets for reducing its environmental footprint and promoting social inclusion.

Strengths

• It has earned strong brand reputation and global recognition.
• It is showcasing excellent financial performance and stability.
• It has a large and talented workforce with a strong culture of innovation.
• It has a diversified global network of manufacturing and research facilities.

Weaknesses

• It faces potential risks associated with mergers and acquisitions.
• It has been witnessing significant challenges in adapting to changing market dynamics and customer needs.
• It is at a high risk of supply chain disruptions due to reliance on key suppliers.
• It relies on a few customers and industries for a major portion of revenue.
• It is highly susceptible to economic downturns.

Tech Mahindra

Market Position or History

In 2020, Tech Mahindra acquired Eventus Solutions Group, a US-based provider of customer experience management solutions. The acquisition will enable Tech Mahindra to enhance its capabilities in customer experience and expand its presence in the North American market.

Business Overview and Strategy

The company was established in 1986 by Anand Mahindra. Its headquarters are located in Pune, Maharashtra, India. It provides a range of services to clients across various industries including automotive, telecommunications, manufacturing, healthcare, and financial services. It is worth noting that the firm’s deep expertise in digital transformation and emerging technologies has helped it to become a key partner for automotive manufacturers and suppliers.

The vision of Tech Mahindra is to enable its clients to "run better, change faster and grow greater" through the use of digital technologies. The company aims to be a leader in digital transformation and help its clients to leverage emerging technologies such as cloud computing, artificial intelligence, and the internet of things.

Strengths

• It has a diversified pipeline of services across numerous industries.
• It is highly committed to adopting sustainable industrial operations.
• It has a robust presence on primary global markets which include the U.S., Europe, and Asia.

Weaknesses

• It witnesses intense competition from other players.
• It is highly vulnerable to economic downturns since it operates in a capital intensive sector.
• The company is highly exposed to political and regulatory risks.

IAV GmbH

Market Position or History

Recently, IAV GmbH announced the development of a digital twin platform that enables engineers to simulate the behavior of an EV battery and optimize its performance. The platform uses data from sensors installed in the battery to create a digital twin that can be used to test different scenarios and identify potential issues before they arise.

Business overview and Strategy

Headquartered in Berlin, Germany, the company was established in September 26, 1983. It has emerged as one of the leading automotive engineering service providers. It designs products for electronics, powertrain, and vehicle development.

IAV GmbH  aims to provide its customers with innovative solutions and services that are sustainable, reliable, and efficient, while also ensuring the safety and security of its products. It is committed to developing advanced technologies, processes, and systems that enable its customers to achieve their business objectives and create value for their stakeholders.

Strengths

• It offers a comprehensive range of services, from concept development to series production.
• It has a strong commitment to corporate social responsibility.
• It maintains high quality standards with high focus on safety.
• It has robust research and development capabilities.

Weaknesses

• It is vulnerable to project delays and cost overturns.
• It faces intense competition from other players.
• It is at a high risk of intellectual property disputes and legal challenges.

Valmet Automotive

Market Position or History

In 2020, Valmet Automotive announced a partnership with the Chinese battery manufacturer CATL to develop and manufacture EV batteries. The two companies plan to establish a new battery module and pack assembly line in Germany, and aim to start production in 2021.

Business Overview and Strategy

With its headquarters in Uusikaupunki, Finland, the company was established in 1968. It offers a wide range of services to the automotive industry, including vehicle engineering, manufacturing, and consulting. It has deep expertise in battery technology, electric powertrains, and lightweight materials, and has been involved in several EV projects.

Valmet Automotive aims to provide high-quality services and products to their customers and become a leading company in the automotive industry. It is further envisioned to creating a sustainable future for mobility by providing innovative and environmentally friendly solutions.

Strengths

• It has a flexible and adaptable approach to project management.
• It focuses on the adoption of sustainable and eco-friendly industrial solutions.
• It has a global presence with offices in multiple countries.
• It has deep expertise in automotive engineering and innovation.

Weaknesses

• It has highly dependent on the automotive industry for revenue.
• It has limited focus on social media and digital marketing.
• It has limited diversification in terms of industry focus.

Semcon

Market Position or History

In 2020, Semcon acquired IT Sonix, a software development company based in Germany. This acquisition allowed Semcon to strengthen its position in the automotive industry and expand its software development capabilities.

Business Overview and Strategy

Established in 1980, the company has its headquartered in Gothenburg, Sweden. It specializes in providing engineering services, digital solutions, and product information for various industries, including automotive, aerospace, and energy. Some of its primarily services include design and development of components and systems, testing and verification, and software development for connected and autonomous vehicles.

Semcon extensively focuses on offering sustainable and innovative solutions that improve people's lives and contribute to a better future.

Strengths

• It is known for offering technologically advanced solutions and services.
• It has employed an experienced and skilled workforce.
• It adopts a collaborative and proactive approach to partnerships.
• It has a widespread global presence with a wide range of clients

Weaknesses

• It is highly reliant on subcontractors and third-party suppliers for raw materials and other entities.
• It faces significant challenges in maintaining a consistent level of quality across all projects.
• It witnesses cultural barriers and communication challenges with international clients.

Onward Technologies

Market Position or History

Recently, Onward Technologies collaborated with Siemens, a leading provider of software and technology solutions. The collaboration between the two companies has focused on providing engineering design services to clients in the automotive, aerospace, and industrial equipment industries.

Business Overview and Strategy

With its headquarters in Mumbai, Maharashtra, India, the company was established in 1991. It is a prominent engineering services and solutions provider that caters to multiple industries, including automotive, aerospace, defense, energy, and medical devices.

Onward Technologies has a strong focus on customer satisfaction and aims to build long-term partnerships with its clients based on trust, transparency, and integrity. It also strives to create a positive impact on society and the environment through its business operations and corporate social responsibility initiatives.

Strengths

• It has a diversified engineering services portfolio.
• It strongly emphasizes on consumer satisfaction.
• It is showcasing strong financial performance.
• It has flexible engagement models to meet diverse client needs.

Weaknesses

• It has limited scale of operations compared to larger competitors.
• It is overly dependent on traditional engineering services offerings.
• It has limited brand awareness in certain regions.

Larsen & Toubro Ltd.

Market Position or History

In 2021, L&T acquired the shipbuilding business of Reliance Naval and Engineering Limited. The acquisition was aimed at strengthening L&T's presence in the shipbuilding industry and expanding its operations in India.

Business Overview and Strategy

With its headquarters in Mumbai, Maharashtra, India, the company was established on February 7, 1946.  Its operations can be broadly classified into four categories, i.e. engineering & construction, manufacturing, IT, and  financial services.

Larsen & Toubro is committed to delivering high-quality, cost-effective solutions that meet the evolving needs of its customers. It has a strong focus on innovation and has established several research and development centers to develop new technologies and solutions.

Strengths

• It has significant presence in both domestic and international markets.
• It has wide-ranging expertise in manufacturing and technology solutions.
• It has strong research and development capabilities.
• It has robust supply chain and logistics capacities.

Weaknesses

• It is highly dependent of the Indian market for revenue.
• It lacks the ability to attract and retain top talent due to intense competition.
• It lacks the agility and flexibility in responding to market changes

AKKA Technologies

Market Position or History

In 2021, Akka Technologies acquired Eurogiciel, a French software engineering company. The acquisition helped Akka Technologies to expand its expertise in the software engineering sector and strengthen its presence in the French market.

Business Overview and Strategy

The company was founded in 1984 by Mauro Ricci.  Its headquarters are located in Belgium. It specializes in engineering and R&D services for various industries including aerospace, automotive, defense, energy, healthcare, and telecommunications. It predominantly offers services such as product development, systems engineering, digital transformation, and consulting services.

AKKA Technologies is envisioned to help its clients stay ahead of the curve by providing innovative solutions that meet their evolving needs.  The company is committed to delivering high-quality services that meet or exceed its clients' expectations and to fostering a culture of innovation and excellence within its organization.

Strengths

• It has a strong focus on safety and sustainability.
• It has a strong financial position with a healthy balance sheet.
• It has an excellent track record of project execution.
• It has a robust global presence with operations in several countries.

Weaknesses

• It faces the risk of exposure to regulatory and legal risks.
• It has limited penetration into new markets.
• It has limited focus on consumer oriented products.