German automotive industry expects radical realignment of its business models

• 69% of German automotive companies expect profound changes to business models, products and processes in the next three years (globally: 36%).
• Technological disruption is considered the greatest challenge for 59% of German respondents (globally: 38%), but only 15% feel sufficiently prepared (globally: 20%).
• Customer satisfaction remains underestimated, but at the same time 69% of German companies want to use AI for personalized aftersales services (globally: 45%).
• 81% of companies are currently reviewing their procurement strategies (65% globally), and alliances and partnerships are becoming more important for future growth.

The German automotive industry doubts the future viability of its business models more than other countries. This is shown by the 25th edition of the Global Automotive Executive Survey by KPMG International, for which 775 managers worldwide were surveyed. Although the entire industry is facing far-reaching changes, the view of the future is particularly critical in Germany: 69% of German companies expect that they will have to fundamentally realign their business models, products and processes in the next three years. Internationally, the proportion is significantly lower at 36%.

Technological disruption is considered the main problem in Germany: 59% of respondents see it as the biggest challenge, compared to 38% internationally. Only 15 percent of German companies feel prepared for this, while the international figure is slightly higher at 20%. Vehicle and cyber security are particularly in focus: 65% rate them as crucial for future profitability, compared to only 38% worldwide.

Customer satisfaction remains an underprioritized topic: only 16% of global managers see it as crucial for long-term profitability. In Germany, too, efficiency dominates over customer focus. Nevertheless, there are initial signs of greater customer proximity - especially in the aftersales business: 69% of German companies want to use AI to personalize services after the vehicle purchase (45% globally). In addition, 63% of respondents cite R&D, innovation and de-sign as a key factor for competitiveness (46% globally).

Geopolitical uncertainties and fragile supply chains are among the biggest risks worldwide. Companies are responding by relocating parts of production closer to the sales markets (nearshoring), relying on partner countries (friendshoring) and increasingly producing locally.

In Germany, the pressure to act is particularly high: 81% of companies are currently reviewing their procurement strategies (65% globally). German companies are also relying more heavily on alliances and partnerships as a growth strategy: 61% see them as a key success factor (39% globally). However, it is striking that only 31% of companies have so far planned collaborations with AI or software companies - and thus less frequently than internationally (globally 44%).

Further information and the full results of the Global Automotive Executive Survey 2025 can be found here: 25th Annual Global Automotive Executive Survey

KPMG AG Wirtschaftsprüfungsgesellschaft
Lisa Meier
T +49 89 9282 6632
lisameier@kpmg.com
www.kpmg.com/de