The article examines how local suppliers in the automotive industry are impacted by their relationships with foreign companies. The study shows that these suppliers have improved their products and processes, thanks to investments and knowledge transfer from foreign companies. However, they still lack innovation capabilities and global presence, which limits their ability to lead in the industry. As a result, local suppliers become more dependent on foreign companies, creating a dilemma for them in balancing this relationship with their own growth and leadership in the value chain.