Just over half of respondents say that ICE optimization will offer the greatest potential for clean, efficient engines for the next 6 to 10 years. Investment in plug-in hybrid technology will be areas of investment for 24 percent of OEM and supplier respondents, while only an average of 8 percent say they will invest in pure battery technologies.
An average of nearly 6 out of 10 respondents say the will increase their investments in the BRICs, which are expected to account for nearly 50 percent of all global vehicle sales by 2018. China is the first choice for investment followed by India, Russia and Brazil. Not only are BRIC countries expected to see a surge in vehicle sales but BRIC automakers are setting their sights on exports to new markets in the next 3 to 5 years with the biggest growth opportunities being in Eastern Europe and Southeast Asia.
As the OEM race to conquer the high-growth emerging markets picks up, sales and production declines remain a concern especially in Western Europe. To counter dips in sales and output, automakers are looking ahead to ways to manage capacity. Twenty-five percent see industry consolidation, joint ventures or alliances as an appropriate solution.
Over two-thirds of respondents envision new alternative solutions to single vehicle ownership such as vehicle-sharing or pay-per-use. Over half of respondents believe that on-demand mobility will account for between 6 and 15 percent of market share over single vehicle ownership by 2025.
The way consumers purchase their vehicles is also changing, particularly in the Americas where according to 83 percent of respondents, online activity and intermediaries will increase. Respondents from Asia, however, expect the traditional dealer model to remain strong in countries in that region.