GAES 2017: Key messages of this year’s survey
Global Automotive Executive Survey 2017
The KPMG Global Automotive Executive Survey is an annual assessment of the current state and future prospects of the worldwide automotive industry.
Lost in translation
Lost in translation: The auto industry is lost in translation between evolutionary, revolutionary and disruptive key trends that all need to be managed at the same time.
Execs are torn in between: Traditional combustion engines will be technologically relevant, but socially inacceptable.
Success of BEVs depends on infrastructure and application: Coordinated actions for infrastructure set-up, and a clear distinction of reasonable application areas (e.g. urban, long-distance) needs to be established.
Execs are hesitant regarding cooperation and unsolved infrastructure challenges: The reason for execs to believe in fuel cells may be their strong attachment to the existing infrastructure and traditional vehicle applications.
Driving out of focus: Autonomous driving will redefine the utility of vehicles and is the enabler for service- and data-driven business models.
Miles are gold and swarm intelligence is essential: The full potential of technologies enabling autonomous driving can only be realized with the support of standards and full power of swarm intelligence. Neither the auto, nor the digital system will succeed on its own.
From offline to online
There is a status of “Co-ompetition”: Strategic alliances and cooperations with players from converging industries will be the fundamental driving force.
Roles throughout the value chain are not yet decided: The unfinished concepts and ambiguous visions of ICT companies cause them to lose ground against OEMs. It is still unclear how the future value chain setup and business models will look like.
Measuring success based on unit sales is outdated: Management according to product profitability is over – customer value will become the core focus.
Zero-error ability alone will not pave the road to success: Neither zero-error ability of offline companies nor releasability of online companies alone will be sufficient for a successful future business model.
OEMs have to decide: whether they want to be a contract manufacturer or a customer-centric service provider (Grid Master).
Data is gold: Security, trust and ownership are key, and that different cultures handle data differently has to be considered.
Data security is the key purchasing criterion: Execs and consumers agree but have different opinions about driving experience and cost – what counts for consumers: data security, cost, speed.
There is a difference between vehicle and customer data: Customers are more willing to share vehicle data compared to behavior data – but in any case this only works if there is a basis of trust. Today, executives grant customers a small say on what happens to their data.
Co-integration requires a superior single sign-on platform: It is not about bringing the auto and digital worlds up to the same speed of innovation but rather about creating a superordinate platform to host bothworlds and integrating all upstream and downstream elements.
A car will need its very own ecosystem: An independent virtual cloud ecosystem is needed to balance the power between end-consumers, digital tech giants and traditional “offline” hardware companies such as auto manufacturers.
New retail concepts pay-off: The first new retail concepts gain ground and build trust among consumers.
Geopolitical turmoil & regional shift
Insecure geopolitical environment: The fear of political changes is as strong as the fear of terrorism, war and natural disasters.
Dramatic change upcoming: Western Europe is not only facing political changes but also severe pressure in the auto industry due to regional shifts.
There is a clear tendency for an even stronger shift towards China: The majority of executives expect the global share of vehicles sold in China to reach 40% by 2030.
The execs’ opinions on India are very conservative: India won’t become a second China in terms of vehicle sales.
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