This study examines the impact of the two primary Engagement Delivery Models (EDMs), Time and Material (T&M) and Fixed Price (FP), on profitability and efficiency in the automotive consultancy sector. A literature review was conducted to investigate EDM applications across different industries, highlighting a lack of research specifically addressing the automotive sector. While engagement models have been extensively analysed in IT and software development, their adaptation within Original Equipment Manufacturers (OEMs) and consulting firms remains largely unexplored. The analysis suggests that profitability drivers vary between the two models, with project size playing a key role in T&M contracts, while cost control represents the primary challenge in FP engagements.