Executive survey reveals continuing environmental challenges, growing urbanisation and shifting consumer behaviour
Mon 21 January 2013
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KPMG LLP's latest Global Automotive Executive survey has warned that new trends in globalisation, rapid urbanisation and changes in consumer actions will precipitate a significant shift in the automotive landscape over the next five years. The survey suggests the collective impact is expected to be felt across the automotive value chain, and calls for comprehensive changes to motor manufacturers' - and their suppliers'- business models.
The key findings are that auto executives believe that electric vehicles will not exceed 15 percent of annual global new car registrations before 2025. For the immediate future, it finds that hybrids will continue to be more popular than pure battery-powered cars.
Over time, fuel cell vehicles are seen as a more promising prospect than battery-electric cars, especially in the BRIC countries. Today's cars must adapt to their environment. Half the respondents feel that vehicle design and usage will be influenced by urban planning. A majority think that new mobility solutions are needed not just for mature, but also for emerging markets, in order to attract future city residents.
As cities seek to reduce pollution and congestion, car ownership may well become restricted and not available for everyone. Another area of growing importance is financing and leasing options, especially in emerging markets, where the potential of finance and lease services for the growing middle class is worth pursuing, executives believe.
Automakers and IT companies are recognising the car's potential as a gateway to the internet with connectivity allowing for safety enhancements by helping vehicles communicate with their external environment. Respondents were uncertain about who will own the significant revenue streams associated with in-car 'infotainment' and connected solutions.
80 percent of respondents see China as the biggest automotive market in terms of both sales and production in 2016. The US is a clear number two while Brazil and India are joint third. The export drive from the BRICs is gathering pace, as they look for suitable hubs such as Turkey or Brazil to access the more mature economies. With China leading the world market comes a risk of serious overcapacity.
Two hundred automotive executives were involved in the annual survey, the 14th published by KPMG.
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