I had the pleasure of attending IAA Mobility 2025 in Munich, a global automotive conference charged with a sense of urgency and profound transformation. With a record 57% of exhibitors coming from outside Germany and significant participation from China, the event was less a traditional car show and more a festival of mobility, showcasing everything from new EVs and autonomy pilots to smart-infrastructure concepts.

For leaders in the automotive space, the key takeaways from the conference halls signal a seismic shift in strategy, technology, and talent. Here are the ten most critical themes that will define the next era of automotive leadership.

1. The Software-Defined Vehicle (SDV) Is Now About Delivery

The conversation has moved beyond the concept of the SDV to its rapid, real-world implementation. The new industry benchmark is the ability to deploy lean, modular, and ready-to-ship software solutions that accelerate development cycles. Panels and displays emphasized the importance of the full “software stack,” over-the-air (OTA) updates, and strategic partnerships with Tier-1s and semiconductor giants. AI is no longer a buzzword but the core “intelligence layer” of the vehicle. This demands a new type of leader with a proven ability to ship complex software products at scale.

2. Electrification’s Pragmatic Path: Profitability, Hybrids, and Charging Speed

While the electric future is certain, the path to it has become more pragmatic. The focus has sharpened on achieving profitability in EV segments with a notable return of advanced hybrids as a critical bridge technology. Premium EVs like the Mercedes GLC EQ and Polestar 5 are also a burgeoning category alongside a strong push toward more affordable BEVs. Furthermore, the competitive benchmark is now execution on tangible metrics like 5-minute fast charging, putting immense pressure on legacy timelines. Leaders must now be adept at managing a complex and mixed vehicle portfolio.

3. Sustainability: The Non-Negotiable Foundation

The industry’s commitment to sustainability now firmly encompasses the entire vehicle lifecycle. Discussions have moved beyond tailpipe emissions to the circular economy, with a sharp focus on recycling, remanufacturing, CO₂ accounting, and building resilient, sustainable supply chains. This creates a clear need for executives with deep expertise in ESG, circular business models, and sustainable procurement.

4. ADAS is the New AD (Autonomous Driving)

While full autonomy remains a long-term goal, the immediate commercial focus has shifted to delivering and monetizing sophisticated Advanced Driver-Assistance Systems (ADAS). The test-drive zones featured impressive ADAS demos and autonomous shuttle pilots, but the core business challenge is clear: manufacturers must develop and globally roll out scalable, AI-driven ADAS. The talent imperative is for leaders who can deliver tangible safety and convenience features to today’s customers.

5. The Customer Experience Extends Beyond the Car

A core principle emerging from the event was that innovation must be rooted in what customers truly need. The increased public engagement and live demos underscored that the key challenge is creating a holistic, connected digital ecosystem that extends beyond the in-car experience. It’s about how the car integrates into your life — knowing your calendar to pre-plan a route or seamlessly connecting to apps. This requires executives with a deep background in customer journey mapping and ecosystem development, often sourced from outside the traditional auto industry.

6. Smart Infrastructure is Now Commercial Reality

Discussions about the mobility ecosystem have moved from theoretical to tangible. The launch of commercial Vehicle-to-Grid (V2G) solutions, which allow EVs to feed power back into the grid, is a landmark example. This signals a need for leaders who can execute complex, cross-industry partnerships with energy, cloud, and municipal partners to build the energy and data backbones essential for future mobility.

7. The Supplier’s Metamorphosis to System Integrator

The transition of the automotive supplier from a component provider to a system integrator and software developer continues to accelerate. Companies that were once manufacturing-driven are now key players in innovation and systems engineering. This ongoing metamorphosis requires transformative leadership capable of managing OEM-tech alliances and fostering new, service-based business models.

8. The Talent Gap Remains a Critical Bottleneck

Underpinning every major trend is a foundational challenge: the fierce and growing talent gap. The industry’s demand for software engineers, AI specialists, and battery chemists far outstrips supply, making talent a primary constraint on growth. For executive search, this translates into specific, high-priority needs:

High-Demand Profiles: We see urgent demand for Heads of Software Architecture, ADAS/AV Program Leaders, and executives for battery systems and cell sourcing. Crucially, leaders who can manage complex OEM-tech alliances are in short supply.

New Assessment Criteria: “Hybrid” experience is now paramount. The ideal candidate combines deep automotive domain knowledge with tech credibility. We are prioritizing candidates with measurable proof of delivery—like hitting safety milestones or launching a new market entry—over qualifications or brand names. Cultural and geopolitical fluency, especially the ability to operate across European and Chinese markets, is a key differentiator.

9. Leaders Must Adopt An Ecosystem Mindset

The complexity of the new mobility landscape requires executives who are ecosystem thinkers. Staying competitive is driven by the strength of your ecosystem—your charging network, your semiconductor alliances, your cloud partners. Leaders must be capable of managing vast networks of partnerships, fostering organizational resilience, and driving deep cultural change.

10. Market Shifts: China’s Entry Into Europe Is Accelerating 

Perhaps the most potent theme at IAA was the palpable shift in the global power dynamic. While European OEMs unveiled inspiring visions, Chinese competitors are delivering customer-ready, technologically advanced vehicles at scale and competitive prices. The strong presence of Chinese brands announcing European availability is intensifying the pressure. Geopolitical factors like tariff risks and regional production—such as BYD’s new plant in Hungary—mean leaders must now be adept at localization and cross-border strategy to compete in a radically new landscape.

Summary

The automotive industry has reached a critical inflection point – it is no longer just about hardware; it’s a high-stakes competition of software and services. Success depends on securing digital leaders who can drive innovation at speed and scale. This dynamic makes the ability to source talent from adjacent industries a critical function, placing executive search firms at the center of this transformation.

If you would like to discuss how these trends can impact your business and talent strategy, please contact me here or browse our Industrial expertise page to find your closest IIC Partners consultant.

Author

Tim Zimmermann, Managing Partner, ingeniam Executive Search & Human Capital Consulting