From factory to flexibility: navigating automotive shifts in Europe

The automotive industry in Europe stands at a turning point. Faced with a wave of structural shifts, from rising complexity in electric vehicle (EV) logistics and new OEMs entering the market, to the pressures of labour shortages, cost inflation, and tariffs, this once-stable ecosystem is being quickly reshaped.

But while the challenges are real, so too are the opportunities. During the Automotive Logistics Supply Chain Europe in Bonn, Germany, I met with existing and potential customers and discussed how the right infrastructure, mindset, and partnerships, can build a more resilient, efficient and responsive supply chain for the long term.

Because that’s what we’re enabling at DP World.

Listening to our customers and our workforce 

From Germany’s established production clusters to major export gateways and fast-growing Central and Eastern European hubs, OEMs across Europe are facing similar pressures: complexity, cost volatility and the need for multimodal flexibility. It’s a reality that industry leaders are openly acknowledging. As Sigrid de Vries, Director General of the European Automobile Manufacturers’ Association (ACEA) recently told EuroNews, “We need to streamline permits and remove barriers that hinder progress, focusing less on dictating rules and more on incentivising growth.”

Our job at DP World is to support OEMs by understanding the pressures they face and partnering with them to tailor reliable solutions that allow them to stay ahead of the curve. Beyond OEMs, we also support Tier-1 suppliers and specialised industrial segments – including yellow goods manufacturers – across their value chains, from inbound component flows to finishes vehicle distribution. We’re investing in lockstep with the industry’s evolving needs – specialised infrastructure, smart trade solutions, and our people. This is not theoretical. In Czechia, for example, we have been selected by BMW Group to operate a 120,000m² integrated logistics facility, managing inbound, storage and outbound flows – a clear signal of the trust OEMs place in our ability to integrate critical warehouse and flow management operations within their supply chains.

Specialist structures to support EVs and beyond 

The EU’s Green Deal, Carbon Border Adjustment Mechanism (CBAM) and evolving sustainability frameworks are accelerating the demand for electric and hybrid vehicles, with total BEV registrations up 25.4% year-on-year in 2025 and plug-in hybrids growing 32% year-on-year – creating new challenges for OEMs as they retool plants and supply chains for batteries and critical minerals. It’s also pressuring OEMs to manage higher capital and energy costs, navigate evolving standards, and protect production continuity amid just-in-time delivery expectations. 

As automotive supply chains evolve, so must the role of the logistics partner. Across Europe, we’re investing in specialised, compliant infrastructure to safely handle batteries and sensitive components – expanding our lithium-ion and hazardous materials capabilities in Germany to support the shift to EV production.

We’re also partnering with leading OEMs to deliver at scale. At the new 260,000m² Daimler Truck Global Parts Centre in Halberstadt, we manage end-to-end warehouse and flow operations, shipping up to 300,000 parts to 3,000 dealers in 170+ countries. In Hungary, we provide assembly and inbound logistics for major automakers, and we’ve renewed our partnership with Audi in Ingolstadt to support its electrification and production transformation.

Beyond individual sites, DP World operates every node of automotive supply chains – connecting first and final miles, managing production peaks and ensuring visibility across electric powertrains, components and finished vehicles.

A Pan-European network built for tomorrow's trade 

Across Europe, we are strengthening a connected automotive network that spans deep-sea ports, inland terminals and logistics hubs.

We enable OEMs to connect their production sites to global markets more efficiently and with a lower carbon footprint. This is made possible through strategic investments such as our 7,000-vehicle Finished Vehicle Hub in Zeebrugge, and our inland intermodal terminals along the Rhine and Danube corridors. Together, these assets form a large-scale, integrated network that connects the region seamlessly to global trade routes.

This pan-European network reduces dependency on single routes and increases resilience in times of congestion or geopolitical disruption.

Helping OEM's make smarter trade-offs

According to DP World’s latest World Without Logistics report, disruptions cost the automotive sector more than $13 billion a year – nearly 5% of a $295 billion logistics market. In disrupted years, 60% of automotive companies lose over a month of operations; four in five see increased customer complaints, 72% lose business or contracts, and 63% report brand damage.

But the research also shows that targeted investment pays off. Companies investing in resilience across six or more logistics areas cut disruption costs by around 20% and recover up to 60% faster than peers. As these pressures intensify, supporting customers to navigate where to invest beyond efficiency is critical. One of the ways we’re doing this is through our co-designed trade finance and financial services solutions, which help bridge working capital gaps and add flexibility to global sourcing strategies – strengthening both cash flow and resilience.

And as the role of logistics in production increases, we’re embedding more digital tools: from CARGOES tracking solutions to automated warehouse management – to drive smarter, faster decisions at every node in the supply chain.

Looking ahead

The reality is this: the European automotive industry is entering a new chapter. Traditional boundaries – whether they be geographical, commercial, or technological – are shifting. And success will hinge on how flexibly the supply chain industry can respond.

At DP World, we are not simply responding to change – we are engineering the logistics foundations that will define Europe’s next automotive era. Because in today’s market, readiness is not optional.