The truth is, there is no single good win rate. A blended figure masks weak new-business performance and hides margin risk, so in my experience the smart move is to set targets by RFQ category.
There is no single good win rate; benchmark by RFQ category, because a blended figure hides weak new-business performance and masks margin risk.
New business is won roughly 49% of the time, renewals and re-bids about 81%, and engineering changes about 91%, according to the Center for Automotive Research.
Roughly 24% of RFQs miss the submission deadline outright, so a fast, reliable response is one of the easiest competitive edges.
Cost estimates often deviate by about 25% against a 3 to 5% target, quietly eroding margin on the work you win.
Win rate and margin must be tracked together, because business won on negative margin rarely turns positive.
Category hit rates are standard inputs for revenue and business-planning scenarios, which makes getting them right more than an academic exercise. Here is what the benchmarks actually say, and what separates strong bidders from everyone else.
Industry win rate: ~49%. The industry-average hit rate, where most bidders compete, and the work is hardest to win.
Industry win rate ~81%. Winning a renewal is not automatic. Even on programs you already hold, a product or capability gap can hand the business to a competitor the moment you cannot meet the OEM's request. Treat re-bids as real contests, not formalities, and qualify early whether you can actually deliver what the next program generation requires.
Industry win rate ~91%. Near-captive work; you usually retain the business.
Respond fast. Speed wins. About 24% of RFQs miss the submission deadline outright, so a fast, reliable response is an easy edge.
Cost accuracy. Estimates often deviate by ~25% against a 3 to 5% target, quietly eroding margin on the work you do win.
Be selective. Around 800 RFQs a year at ~157 hours each. Deploy an effort where you can win at a profit.
Win profitably. Winning on thin margin is still a loss. Track win rate and margin together, never in isolation. Winning with little to no margin is a recipe for disaster. In my experience, business won at a negative margin rarely turns positive (cutting costs later to "figure it out" is harder than it sounds).
Q: What is a good RFQ win rate for an automotive Tier 1 supplier?
A: There is no single number. Benchmark by category: roughly 49% for new business, 81% for renewals and re-bids, and 91% for engineering changes.
Q: Why not just track one blended win rate?
A: A blended figure masks weak new business performance and hides margin risk, so a struggling pipeline can look healthy.
Q: How much does response speed affect win rate?
A: A lot. About 24% of RFQs miss the submission deadline outright, so responding quickly and reliably is an easy edge.
Q: Should we bid on every RFQ?
A: No. With around 800 RFQs a year at roughly 157 hours each, selective and deploy effort where you can win at a profit.
Q: Is a high win rate always good?
A: Not if it comes from thin or negative margins. Track win rate and margin together, because negative-margin businesses rarely turn positive.
Source: Faler, E., et al. Automotive Suppliers and the Revenue Acquisition Process – Then and Now: 2025 Update: What's Working? What's Not, and What's Changed? Center for Automotive Research, Sept. 2025, www.cargroup.org/wp-content/uploads/2025/09/Automotive-Suppliers-and-the-RA-Process-2025-Update.pdf.