The Belgian automotive market is at a crossroads between technological innovation, sustainability and new mobility needs, taking into account a particular Belgian tax landscape. Those challenges will deeply affect all the sectors of the automotive market, from car manufacturing to fleet management. Moreover, the sector is faced with increased geopolitical challenges and higher costs due to high inflation and energy prices in the post-COVID-19 era.
At KPMG, we have a core team of Automotive specialists in Belgium across Audit, Tax & Legal and Advisory with a global network of professionals to help us take a broad ranging approach to our clients’ activities within the industry. We strive to address those challenges and to give the best quality services to our clients thanks to our multidisciplinary and global network and to our passionate automotive team.
Thanks to our multidisciplinary approach, we also assist our clients in their fleet transition towards a sustainable mobility policy taking into account new tax legislation, environmental and investment challenges, as well as the new flexible way of working by providing them with tailormade analyses and ad hoc solutions that meet their specific requirements.
Our services focus on assisting our clients to address key issues facing the automotive industry including:
- reporting and regulation;
- tax and cost analysis regarding remodeling car fleets;
- sustainability and the environment;
- plant location, closures and relocation;
- emerging market companies;
- evolving distribution channels;
- consumer trends;
- private equity investment;
- improving operational efficiencies;
- market entry and expansion;
- business operating model structure.
The global automotive market is diverse. It ranges from original equipment manufacturers (OEMs) and component manufacturers, to dealerships and commercial vehicle manufacturers. KPMG Belgium’s Automotive sector offers a pro-active, forward-thinking service to our clients to help ensure that the potential for growth that the industry is currently witnessing is not missed, and that the issues and challenges faced by the industry can be overcome.
Challenges & trends
Sustainability and environment
Sustainability is a growing concern for car manufacturers and consumers since several years now. The greening of mobility is the source of numerous challenges for companies and governments.
Digitization
In the future, we can expect more and more car digitalization, with innovation paving the way for autonomous vehicles. These innovations will bring new challenges for the sector, from production to insurances and sales.
Mobility solutions
In Belgium, mobility solutions are subject to unique legislation and form a core part of compensation packages. These solutions are tailored to the specific needs of individual companies.
Belgian tax landscape
The growing complexity of Belgian tax legislation and its continuous evolution has a notable impact on the automotive market. Familiarity with the Belgian tax landscape is key to managing your tax burden. With a new tax law on the greening of mobility, which takes effect as from 2023, it is now more than ever time to work out a sustainable future-proof mobility policy.
Motor technology in the future
The decline of fossil fuel motorizations on the market is clearing the way for alternative motorizations such as Battery Electric Vehicles, Hybrid Electric Vehicles and Plug-in Hybrid Electric Vehicles.
The post COVID-19 era
The impact of the COVID-19 pandemic on the automotive sector is unparalleled. While technology remains a key focus for the sector, the COVID-19 crisis will put a greater focus on survival and operations. Increasing geopolitical tensions, ongoing supply chain disruptions, high energy prices and high inflation are impacting the automotive sector.
Key Services involved in the Automotive sector
- Decision-making process
- Risk assessment
- Business impact mitigation
- Recovery strategies
- Continuity management
- Merger & Acquisitions
- Restructuring
- Digital & Technology transformation
- Value creation
- Anticipating change
- Direct and Indirect Tax & Legal advices
- Transfer pricing
- Compliance
- Tax technology
- Litigation
- Product strategy
- Costs reduction
- Efficiency improvement
- Market analysis
- Commercialization
- Eco-efficiency analysis
- Commercial viability
- Environmental impact
- Screening evaluation
- Sustainability tools
- Process creation
- Advanced tools and solutions
- Business expansion
- R&D strategies
- Regulatory changes
We advise Automotive sector clients on a broad spectrum of issues as well as through the following integrated solutions
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