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    KPMG 2024 Industrial Manufacturing and Automotive CEO Outlook

    Industrial manufacturing and Automotive CEOs share their views on economic outlook, return-to-office, ESG and generative AI.
    two-colleagues-discussing
    1. 240 Industrial manufacturing and Automotive CEOs
    1. 11 countries
    1. $500m USD+ in review

    Today’s business landscape is fast-moving and unpredictable, characterized by geopolitical tensions, regional conflicts, stuttering economic conditions, and rapid technological change. It’s a potent mix of factors that may keep any CEO up at night.

    Despite this, the KPMG 2024 Industrial Manufacturing and Automotive CEO Outlook, based on the views of 240 leaders in the sectors, finds that CEOs are generally optimistic, with their eyes turning toward a growth agenda.

    Industrial manufacturing and automotive are dynamic, evolving industries. They make a significant contribution to national economies. They often sit at the heart of local communities, providing employment opportunities in an exciting and varied place to work.

    For all these reasons, despite the many pressure points, there is a bold future ahead. CEOs are aware of the hurdles they must negotiate – but they are also confident about the opportunities in front of them.

    KPMG 2024 Industrial Manufacturing and Automotive CEO Outlook

    Explore how industrial manufacturing and automotive CEOs are navigating through global turbulence by betting big on AI.

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    Key findings from the research

    1. Seventy-four percent of respondents are confident in the growth prospects of the global economy.
    2. More than 70% of industrial manufacturing (IM) and automotive CEOS believe that generative AI will not fundamentally impact the number of jobs but will require upskilling and existing resources to be redeployed.
    3. Ninety-five percent of CEOS shared that within three years’ time they predict a full return to office.
    4. The number one concern for automotive CEOs (30%) is the number of employees retiring coupled with a lack of skilled workers to replace. While IM CEOS identify their number one concern as the knowledge transfer between employees (33%).
    5. While 74% of IM CEOs believe that their greatest barrier to achieving net zero is the complexity of decarbonizing supply chain, this belief is only shared by 38% of Automotive CEOS that responded.
    A sense of optimism laced with a bit of caution is how I would sum up the mood amongst industrial manufacturing and automotive CEOs. That said, economic conditions have stabilized with costs having reduced which means sustained earnings growth is something we could see. Geopolitical Uncertainties are a key concern. How that How that plays out — including impacts on oil prices — could have a significant impact on future trading scenarios.

    Jeffry Jacob

    Partner, and Head (automotive)

    KPMG in India

    Jeffry Jacob
    A good amount of consolidation and deals are expected in the automotive industry over the coming years. This is not only because of some overcapacity that we are witnessing in the market but it’s also a result of original equipment manufacturers (OEMs) feeling the need to acquire new capabilities in areas such as microchips and batteries for EVs. This could spawn growing numbers of partnerships and JVs as well as outright acquisitions.

    Rohan Rao

    Partner, Automotive and Lead - Electric Mobility

    KPMG in India

    Rohan Rao

    Methodology

    Today’s business landscape is fast-moving and unpredictable, characterized by geopolitical tensions, regional conflicts, stuttering economic conditions, and rapid technological change. It’s a potent mix of factors that may keep any CEO up at night.

    Despite this, the KPMG 2024 Industrial Manufacturing and Automotive CEO Outlook, based on the views of 240 leaders in the sectors, finds that CEOs are generally optimistic, with their eyes turning toward a growth agenda.

    Industrial manufacturing and automotive are dynamic, evolving industries. They make a significant contribution to national economies. They often sit at the heart of local communities, providing employment opportunities in an exciting and varied place to work.

    For all these reasons, despite the many pressure points, there is a bold future ahead. CEOs are aware of the hurdles they must negotiate – but they are also confident about the opportunities in front of them.

    Key Contacts

    Jeffry Jacob
    Jeffry Jacob

    Partner, Business Consulting

    KPMG in India

    Rohan Rao
    Rohan Rao

    Partner, Deal Advisory

    KPMG in India

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