European auto parts makers confront Chinese competition, turn to tool upcycling to cut hard‑metal costs

A recent survey of the top 100 European automotive suppliers shows growing pessimism about their future position as Chinese firms increase market share. Companies such as CATL and HASCO are now among the global top 10, and China fields 15 firms in the top‑100 list. Respondents said confidence in maintaining a quality lead fell from 30 % in 2022 to 11 % for 2030, and belief in an innovation lead dropped from 18 % to 9 %. The share of sales to Chinese OEMs is expected to rise from 7 % today to 18 % by 2030, indicating deeper integration with China’s auto industry.

At the same time, soaring hard‑metal (APT) prices—up more than 500 % since 2025—are pressuring the supply chain. Müller Präzisionswerkzeuge has promoted “tool upcycling,” refurbishing worn carbide tools to replace new ones. The process can meet 30‑50 % of new‑tool demand while preserving performance, offering a cost‑stable alternative for manufacturers facing volatile raw‑material markets. An international automotive supplier has already adopted the approach, citing reduced downtime and improved price certainty.