EN
OEMs design, assemble, and sell vehicles under their own brand names. They typically work with suppliers to source the thousands of components that go into a vehicle but oversee the overall vehicle design and integration.
Examples of OEMs: Toyota, Volkswagen, General Motors, Ford, Honda, Mercedes-Benz, BMW, Hyundai, Stellantis.
Many automakers operate as multi-brand groups, meaning a single company owns several car brands. However, these brands don’t always function independently – some manage their own supplier relationships, while others share centralized procurement across the group. Because of this, defining what counts as a single OEM isn’t always straightforward.
At Smart Eye, we consider brands to be separate OEMs if they handle supplier selection independently. If procurement is centralized – where one decision applies across multiple brands – we count them as one OEM instead.
For example, Porsche and Audi are treated as separate OEMs because they manage supplier relationships individually, despite both being part of Volkswagen Group. On the other hand, Hyundai and Kia are counted as a single OEM because they share a centralized procurement structure, meaning supplier decisions apply to both brands at once.
Tier 1 suppliers manufacture large vehicle systems or complex components and deliver them directly to OEMs. These can include powertrains, braking systems, infotainment units, and driver assistance systems. Tier 1soften integrate components from Tier 2 suppliers into fully assembled systems before delivering them to automakers.
Examples of Tier 1 suppliers: Bosch (electronics and driver assistance), Magna (chassis and body systems), Continental (ADAS and braking systems), ZF (transmissions and mobility tech), Denso (powertrain and cabin electronics).
Tier 2 suppliers provide specialized components, electronics, and software that Tier 1 suppliers use to build complete systems. They traditionally don’t work directly with OEMs but play a crucial role in the supply chain.
Examples of Tier 2 suppliers: Smart Eye (driver monitoring and interior sensing software), Infineon & NXP (automotive chips and semiconductors), Murata (sensors and electronic components).
Tier 3 suppliers provide raw materials and foundational components used by Tier 2 suppliers to manufacture specialized vehicle parts. These include metals, plastics, glass, rubber, and wiring, as well as basic mechanical parts like fasteners and small hardware.
Tier 3 suppliers do not typically work directly with OEMs or Tier 1 suppliers. Instead, they serve as the foundation of the supply chain, supplying refined materials to Tier 2 companies that integrate them into automotive components.
Examples of Tier 3 suppliers: ArcelorMittal (steel and metal production), BASF (plastics and chemical materials), Corning (automotive glass), Sumitomo Electric (automotive wiring).
The traditional OEM-Tier 1-Tier 2-Tier 3 structure still defines the automotive industry, but the increasing role of software and electronics is affecting how vehicles are built.
In some modern cases, the traditional supply chain doesn’t fully apply. For example, software suppliers – once strictly Tier 2 – are now acting as Tier 1s in some cases. As vehicles become more software-driven, some OEMs are sourcing operating systems, AI-driven assistance technology, and cloud services directly from them, bypassing traditional hardware suppliers.
