APTV · 10-Q · 2026Q3 · Full report

Competition and Pricing Pressure

Aptiv PLC · 2026-11-03 · Importance 24 · Surprise 14

Aptiv says OEM cost-cutting and contractual price step-downs create ongoing downward pricing pressure, with supply agreements typically reducing component prices by 1% to 3% over production periods. It relies on production cost savings and customer price recoveries to offset reductions and input-cost increases, but says competitive and market pressures—particularly from U.S. OEMs—limit its ability to pass through higher costs. The company also identifies new entrants from outside traditional automotive supply as competitors for vehicle technology and component markets, particularly as software and technology content rises.

Key facts

• Aptiv said customer supply agreements generally require component price step-downs over production periods, typically 1% to 3% of net sales, and its profitability partly depends on cost savings offsetting those reductions. source
• Aptiv said contractual price reductions typically range from 1% to 3% of net sales. source