Agile works best when operating in the Complex domain.
The Cynefin Framework classifies projects into four domains: Simple, Complicated, Complex, and Chaotic. Agile works best when you're working in the Complex domain.
In the Simple domain, you're working with a well-understood area and you're able to complete it simply by following a set of rules and procedures. For instance, assembling Ikea furniture would be a project in the Simple domain; you're just following the instructions in the box.
In the Complicated domain, you're dealing with known unknowns, and you can produce a result by finding out what those are and then getting to work. A lot of engineering work is in the Complicated domain, and Waterfall works well for projects here.
In the Complex domain, you're dealing with unknown unknowns, and you need to be able to flexibly change your course to adjust for them, which is why Agile works best here. Software engineering mostly falls into this domain, which is why Agile is so popular in that field, but it's possible for other projects to do so as well.
In the Chaotic domain, you're dealing with a situation where you can't establish the information in a cohesive fashion, and you have to act to impose order; an example would be firefighters attending to a burning building or police attending to a riot.
So, to answer your actual question, simply re-frame it as such: Are the problems in the Automotive industry Complex?
