KPMG 2025 Global Industrial Manufacturing & Automotive CEO Outlook

Challenging times call for strong and bold leadership

Bold leadership is imperative in today’s dynamic environment. Industrial manufacturing and automotive CEOs must proactively navigate a landscape defined by continual change, seizing emerging opportunities and addressing complex challenges head-on. With electrification, AI, including agentic AI, and digitalisation transforming every aspect of production and customer engagement, leaders are called to drive innovation, resilience, and sustainability. By closely monitoring emerging trends and adopting agile strategies, CEOs are actively positioning their organisations to keep pace with rapid industry transformation. This report provides a comprehensive understanding of how leaders worldwide are responding to disruption, leveraging technology, and driving sustainable growth in a fast-evolving landscape.

Optimism & Caution

While 87% of automotive and 81% of industrial manufacturing CEOs are confident in their sector’s growth, only about three-quarters feel optimistic about their own company’s prospects, highlighting the challenge of executing transformation at speed and scale.
Technology & AI

AI is a top investment priority, with 70% of CEOs planning to allocate 10–20% of their budget to AI in the next year. Generative and agentic AI are seen as game-changers, but a gap remains between ambition and execution.
Supply Chain Resilience

The #1 operational priority is building resilient supply networks to withstand geopolitical and resource pressures. Nearshoring, digital visibility, and AI-powered monitoring are key strategies.
Talent & Leadership

Attracting and retaining AI talent is a major challenge. CEOs are investing in upskilling, external expertise, and fostering adaptable, tech-savvy workforces.
Sustainability

Sustainability is shifting from compliance to a strategic lever for value creation. AI is increasingly used to optimise energy, reduce emissions, and support climate goals.

KPMG 2025 Global Industrial Manufacturing & Automotive CEO Outlook

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Key findings

Supply chain resilience

47 percent in Automotive and 63% in Manufacturing say supply chain resilience is the top operational priority.

AI investment

Approximately 70 percent of Automotive and IM CEOs plan to allocate 10-20 percent of their budget to AI over the next year.

The global automotive sector is cautiously optimistic, with CEOs sharpening their focus on portfolio discipline, supply chain resilience and technology enabled productivity as they navigate geopolitical uncertainty, cost pressures and the transition to electrification. For India, these findings underscore a clear inflection point. With strong domestic demand and accelerating localisation, Indian automotive companies are well positioned to move from AI pilots to enterprise wide deployment. The ability to execute at scale, while embedding sustainability and digitalisation into core operations, will determine long term competitiveness and value creation.

Jeffry Jacob

Partner and National Sector Leader - Automotive

KPMG in India

Given the dynamic geopolitical situation, global industrial manufacturing CEOs are prioritising cost efficiencies, supply chain & operational resilience and long term value creation. They are looking at technology and AI as an enabler to address the dynamic situation. Workforce skilling and decarbonisation embedded in operations are getting increasing focus. Embracing all these may no more be a choice, but a necessity for sustained growth and a stronger business performance.

S Sathish

Partner and National Sector Leader, Industrial Manufacturing

KPMG in India

Why download this report?

By downloading the 2025 Industrial Manufacturing & Automotive CEO Outlook report, you’ll unlock unique perspectives on:

Discover actionable strategies from CEOs in industrial manufacturing and automotive for thriving in an era of disruption
Benchmark your organisation against global industry leaders
Gain insights into technology, talent, and sustainability trends shaping the future of industrial manufacturing and automotive sectors.