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Automotive logistics refers to the process of managing the movement, storage, and distribution of materials, parts, and finished vehicles within the automotive supply chain. It encompasses everything from sourcing raw materials, managing inventory, and coordinating the timely delivery of components to manufacturing plants, to transporting finished vehicles to dealerships or directly to customers. This process involves complex coordination between suppliers, manufacturers, transporters, and distributors to ensure that automotive supply chain works smoothly and vehicles reach the market efficiently.
In 2024, the European automotive industry faced significant challenges amid a complex transition toward electric vehicles (EVs) and a competitive market landscape. Some companies demonstrated resilience by increasing operating margins despite reducing unit sales, highlighting a strategic focus on profitability over volume. However, a number of automotive manufacturers experienced difficulties, leading to substantial job cuts in their automotive technology divisions due to declining sales and orders.
The specific nature of automotive logistics
The automotive industry’s logistics are deeply integrated with production systems, often requiring highly synchronized processes and efficient, real-time coordination. From global supply chain to the transport of finished vehicles, the logistics of the automotive industry are complex and must address challenges like inventory management, supply chain disruptions, and the increasing demands for sustainability and technology integration. Successful logistics in the automotive industry requires efficient sourcing raw materials, leveraging advanced technology, maintaining flexibility, and ensuring compliance with stringent regulations.
The importance of automotive logistics
Automotive logistics operations are not just about moving parts from one place to another—they are an essential component of a competitive, efficient, and sustainable automotive supply chain management. Logistics affect everything from production speed and cost-efficiency to customer satisfaction and compliance with regulations. In an increasingly globalized, fast-paced, and environmentally-conscious world, the importance of logistics in the automotive industry supply chain cannot be overstated. Companies that invest in robust logistics systems and continuous improvement are better equipped to respond to challenges and capitalize on opportunities.
Main challenges in automotive logistics
Automotive logistics face several challenges due to the complexity of global supply chains, the need for just-in-time production, and the variety of parts and vehicle models. One of the main challenges is supply chain disruptions, often caused by global factors such as natural disasters, geopolitical instability, or even pandemics. Additionally, managing the logistics of parts across multiple tiers of automotive industry's supply chain supply chain, spread across various regions, adds to the complexity, requiring sophisticated coordination and real-time monitoring.
Another significant challenge of automotive supply chains is the increased demand for customization and the transition to electric vehicles (EVs). With more vehicle models and configurations available to customers, logistics must handle an ever-expanding variety of parts, making inventory management and timely deliveries even more critical. The rise of EVs adds further complexity in managing the transportation of specialized components.
Combined with increasing pressure for sustainability and reducing carbon footprints, automotive logistics must innovate to stay competitive, ensuring timely deliveries, cost-efficiency, and environmental responsibility.
Modern solutions in automotive logistics
Modern solutions in automotive logistics leverage advanced technologies like automation, artificial intelligence (AI), and data analytics to streamline supply chain management and improve efficiency.
Digitalization has revolutionized automotive logistics by providing real-time tracking of shipments, inventory management, and predictive maintenance for transportation fleets. The use of advanced systems like the Internet of Things (IoT) devices, such as RFID tags and GPS tracking, allows companies to monitor parts and vehicles throughout their journey, ensuring timely deliveries and reducing the risk of errors or losses. Additionally, machine learning algorithms help predict potential disruptions or bottlenecks in the supply chain, enabling proactive adjustments before problems arise.
To further enhance efficiency, automotive companies are adopting autonomous vehicles for logistics operations. Self-driving trucks and drones are being tested for long-haul deliveries and last-mile transportation, which can reduce labor costs and improve delivery speed of supply chain.
The global expansion of electric vehicles
The global expansion of electro mobiles continued to accelerate in 2024, with significant growth across various regions. In December 2024, global sales of fully electric and plug-in hybrid vehicles reached 1.9 million units, a 25.6% year-on-year increase. Total EV sales for 2024 surpassed 17 million units, marking a record year with a 25% increase compared to 2023.
Overall, 2024 marked a significant year for EV adoption, with substantial sales increases in key markets. However, challenges such as regulatory adjustments and market saturation in certain regions underscore the need for continued innovation and supportive policies to sustain growth.
Automotive industry statistics
In 2024, the global automotive industry exhibited a mix of growth and challenges across various markets. Worldwide, new car sales reached approximately 70 million units, marking a significant recovery from the pandemic-induced lows of 2020-2022.
In the United States new-car sales grew by 2.2% in 2024, totaling 15.9 million units and returning to pre-pandemic levels. Electric vehicle (EV) sales saw a 9.5% year-on-year increase, though this fell short of global growth rates. The automotive sector faced challenges due to the introduction of 25% tariffs on imports from Canada and Mexico, leading to potential price increases and supply chain disruptions.
As for China, after a 14.6% production increase in 2023, growth slowed to 5.2% in 2024, with a forecasted 3.7% increase in 2025. Domestic car sales contracted by 3% in 2024, influenced by reduced consumer confidence.
The European automotive industry maintained its global leadership in research and development investments, despite regulatory and geopolitical uncertainties.
Why it’s worth cooperating with AsstrA for automotive logistics?
AsstrA is a reliable, modern provider of logistics services for manufacturers of cars and other vehicles and spare parts. We serve both wholesalers and retailers. Building on deep experience and streamlined processes, AsstrA established a dedicated Automotive Logistics division in 2012 to offer efficient logistics solutions to producers of cars, tires, and spare parts. Our experience, high quality of service, and adherence to maximum transport safety standards are confirmed in numerous customer satisfaction.
AsstrA serves various needs in the automotive needs in the automotive industry:
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Transportation of passenger cars
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Transportation of spare parts and components
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Transportation of tires
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Transportation of trucks on own wheels
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Transportation of trailers and semitrailers
AsstrA's transport lanes encompass the entire world. Experienced specialists will deliver your cargo according to your timeframe regardless of its destination.
The company's experts select the most efficient and convenient type of transportation in accordance with client requirements. The Trade Lane Management matrix is a system that includes all possible alternatives for shipments from one region to another and helps enhance logistic solutions.
Our experts develop optimal routes for the international transport of cars and spare parts for Europe, Asia, the USA and the CIS.