Eighty-eight percent of respondents feel that the key to growth over the next five years is to develop new products and technologies, closely followed by entering new markets. Respondents from the BRICs are especially optimistic that pricing and sales incentives can stimulate extra demand.
Although organic growth remains an important priority, corporate partnerships are considered the best strategy for success, particularly amongst OEMs and suppliers seeking new ways to expand their value chains and diversify.
The survey’s findings suggest that OEMs will not dominate the manufacturing of e-components, lightweight components, mobility services or connected car technologies, with the latter likely to be the domain of technology companies. Joint approaches among different players appear to be the more favored approach.
Where will future profits come from?
In the developed countries, respondents are almost evenly split between vehicle and electric powertrain manufacturing as the main contributor to profits, whereas in the BRICs, the largest proportion (39 percent) have a preference for vehicle manufacturing. A third of OEMs believe the biggest source of margins will be vehicle manufacturing.