Automotive trends drive our industry, requiring precision-machined suppliers to respond dynamically to change when OEMs require them. Fortunately, multi-market automotive component producers like Kenona Industries are well-positioned with the tools, talent, and infrastructure to provide virtually any precision-machined part and assembly for every internal combustion engine (ICE) or electric vehicle (EV) on the market today, whether for personal, commercial, or defence applications.
In this month’s blog, we’re providing an overview of how the global automotive market is shifting and what it means for Tier 1, 2, and 3 OEMs and their components partners.
North America
Domestically, we’re seeing a continued dominance of larger ICE vehicles such as SUVs, crossovers, and pickup trucks. These vehicles typically operate at higher gross vehicle weights, with towing requirements and more variable duty cycles than passenger cars. This means that there is an increased demand for heavier, load-bearing machined components across the chassis, suspension, and drivetrain.
From a precision-machining perspective, North American vehicle programs place a high emphasis on:
- Larger suspension knuckles, control arms, and steering components with high fatigue resistance
- Differential housings and transmission cases designed for torque durability
- Brake and hub assemblies with tighter concentricity and thermal stability tolerances
EVs, hybrid SUVs, and pickups are still popular in North America; however, the growth trajectory is much more conservative. This means that partnering with parts suppliers that can seamlessly flex between programs is necessary for OEMs to simplify their supply chains as consumer demand changes.
Europe
There appears to be a more balanced mix of vehicles in Europe than in North America. SUVs still lead the market in overall share, but cars, sedans, and vans are not far behind.
This diversity has a direct impact on component strategies for European OEMs, who must utilize a broader selection of materials more frequently and share modular component designs across multiple vehicle classes.
Weight optimization also plays a role, as suspension and steering components for European SUVs are often lighter and more compact than their North American counterparts, yet require equal or greater dimensional accuracy due to tighter handling and NVH targets.
Additionally, many European districts have set emissions targets, which require precision-machined parts suppliers to meet tight geometric tolerance requirements without compromise.
EVs remain popular in Europe, though sales are declining. As in North America, European OEMs are wise to partner with component suppliers who can deliver a diverse mix of high-quality products at scale, even amid market shifts.
Emerging Markets
In markets such as India, Southeast Asia, and parts of Latin America, sedans, hatchbacks, and compact SUVs dominate in a cost-sensitive market. While vehicle sizes may be smaller, engineering complexity continues to increase due to safety regulations and emissions standards.
Precision machining in these regions often prioritizes:
- Cost-efficient production without sacrificing repeatability
- High-volume machining of smaller components
- Robust designs that tolerate varied operating conditions
Compact SUVs are gaining share, but they are often engineered on adapted small-car platforms, which means that manufacturers must balance cost, volume, and accuracy. Suppliers serving these markets benefit from scalable processes that can adapt to the shifting mix of compact cars and entry-level SUVs without extensive retooling.
As in other markets, ICE vehicle sales continue to outpace EVs in these regions.
What This Means For OEMs And Their Precision-Machining Partners
For OEMs, the bottom line to success in evolving regional vehicle mix means that machining capabilities must align with platform diversity, not just volume. As a result, their precision-machined parts suppliers must be able to support multiple vehicle classes, materials, and tolerance regimes across regions, which allows them to become trusted strategic partners rather than transactional vendors.
That’s just one of the reasons why more world-class domestic and offshore automotive OEMs are partnering with Kenona Industries/Arrow Automotive as their precision-machined parts and components supplier of choice.
Read More: Precision-Machined Automotive Equipment Trends To Watch For In 2026
Partner With Kenona Industries For High-Quality, Precision Machine Parts And Components For ICE Vehicles And EVs
As a leading Tier 1, 2, and 3 supplier to leasing automotive OEMs, Kenona Industries/Arrow Automotive is already positioned with the experience and technology to fulfill virtually any part or component need.
Our ability to flex dynamically across vehicle segments and scale programs as regional demands shift makes us a leading partner for manufacturers who require high-quality parts and components for virtually any type of vehicle. When your needs change, we maintain strict process control while adjusting volumes to your exact specifications.
When you’re ready to start your next automotive parts and components project to support your ICE and EV program, call our team first!
Read More: What Our IATF And ITAR Certifications Mean To Our Customers
Contact Kenona Industries For A Quote On Your Next Design And Fabrication Project
Kenona Industries is a world-class supplier of automotive components to leading OEMs and Tier 1, 2, and 3 manufacturers. Discover what sets us apart by requesting a quote for your next project today