A range of global mega trends are blurring the traditional boundaries of the automotive model. Automakers face environmental challenges, growing urbanization, changing customer behavior and the growth of the emerging markets. These rapid changes are forcing a re-evaluation of traditional business models, as OEMs seek to broaden their core competencies and choose whether to move into multiple new areas or narrow their focus.
The KPMG Global Automotive Executive Survey is an annual assessment of the current state and future prospects of the worldwide automotive industry. In our 2013 survey, 200 senior executives from the world's leading automotive companies were interviewed, including automakers, suppliers, dealers, financial service providers, rental companies and mobility service providers.
- Environmental challenge
Consumers not embracing battery driven cars: fuel efficiency is the number one purchase criteria, with plug-in hybrids likely to be the next big thing.
Investments in ICE optimization increase: 29 percent of OEMs and suppliers plan to invest in ICE (internal combustion engine) optimization and another 24 percent in plug-in hybrids – with pure battery vehicles far behind on 9 percent.
- Growing urbanization
Moving people around megacities: urban sprawl is leading to new mobility concepts with 72 percent believing that MaaS will be a real alternative to car ownership.
Making mobility solutions profitable: 77 percent agree that brand reputation can help to boost an OEM's mobility offering.
- Changing customer behavior
Significant pressure on dealers: respondents anticipate a rise in online activity, with multi-brand dealerships set to dominate in future. Only 54 percent of TRIAD respondents see the existing dealership model as fit for the future.
Financing options once more increasing in importance: consumers – even those from BRICs – are seeking competitive financing options, but not yet for e-components.
- Growth & Globalization
Convergence of the BRICs: 61 percent believe emerging and mature markets will converge in terms of quality, safety and reliability, while most expect BRIC manufacturers to export significant numbers of vehicles within 5 years.
Development of hubs: BRIC manufacturers heading for South East Asia and Eastern Europe as a hub to enter the mature markets.
Regulations are getting tougher in the BRICs: respondents see tightening of entry conditions and barriers, with import/export duties increasing the most.
Solutions to overcapacity remain elusive: over half feel Japan, Germany, US, Korea, Spain and France all have a high risk of overcapacity – with no common solution emerging.
- Road to success
Investments strategies are different: OEMs focusing on new technologies (battery, power electronics) whereas suppliers are interested in operations (logistics, plants).
New technologies increase competition from fresh players: responsibility for new technological building blocks will be shared among a diverse set of competitors.
Future profit generation: vehicle manufacturing will continue to be the main source of profits – especially in the BRICs.
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