According to the 19th annual KPMG Global Automotive Executive Survey, 74 percent of executives believe the share of vehicles manufactured in Western Europe will be less than five percent by 2030, with production moving in large part to Asia. Fuel cell electric vehicles replaced battery electric vehicles (BEVs) as the year’s number one manufacturing trend. However, consumers are more interested in lifespan and price of the vehicle than in the technology of power units.
Over half of the executives (56 percent) is more or less certain that the number of car dealerships will drop by 30 to 50 percent by 2025. Almost 80 percent of executives are convinced that the only means for dealers to survive is by restructuring into a service factory or a used car hub.
While today 3,000 different models are being produced in more than 700 factories, only two percent of these are pure electric vehicles. More than three-quarters of global executives say fuel-cell electric mobility will be the real break-through for electric mobility. As the number one e-mobility leader executives see BMW. BMW, already last year’s leader, has strengthened its position by increasing the gap to Tesla, which stabilized its second place ranking.
In spite of the trends anticipated by top managers from industry, more than two-thirds of the surveyed consumers say they are not interested in the technology of power units. They only want the most durable, cost-competitive solution that gets them from point A to point B.
“Consumers still decide on the basis of the comfort and overall economy of car ownership, so most people usually choose a gasoline or diesel vehicle“, said Peter Nemeckay, leader of Automotive sector group at KPMG in Slovakia. “However, change of consumer behavior in the future can be triggered by, for example, state regulation“, he added.
According to 58% of respondents BMW will increase its market share faster than its rivals. Daimler (Mercedes-Benz) is the second strongest automotive brand to increase sales, while Toyota is the third. Our largest carmaker Volkswagen moved from sixth to fifth position. Tesla recorded the biggest change and rose from the eighth position in 2017 to the current fourth position.
In the V4 countries, the majority (56%) of Global Automotive Executive Survey 2018 respondents said that in the future automakers and technology companies will be competitors rather than business partners. However, the over-majority thinks that if companies in the automotive industry do not establish a structured approach to cooperating with innovative startups, it can lead to their failure. Working with partners from related industries is, according to managers in the region, one of the two most important strategies for the success of the company. The second is the formation of strategic alliances or partnerships in the form of joint ventures.
In this year’s survey we asked a total of 3000 respondents our questions, of whom 900 are automotive executives – more than half are C-level executives or CEOs, Presidents or Chairpeople. The respondents represent companies of all parts of the automotive value chain including vehicle manufacturers, Tier 1, 2 and 3 suppliers, dealers, financial services providers, mobility service providers and for the first time also ICT companies. The survey was conducted online and took place between July and November 2017. Also, 2,100 customers from around the world, all ages and educational backgrounds were interviewed to give us insights and their valuable perspectives and opinions. All the survey data is now available at www.kpmg.com/GAES2018 in an interactive online tool.
KPMG Slovensko spol. s r.o.
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