Scale of production, operational efficiency and brand strength are no longer enough to secure success in the automotive industry. Increasingly, competitive advantage is determined by the speed of technology adoption, the ability to leverage data, and the capacity to build ecosystems in which vehicle manufacturers collaborate with technology providers and infrastructure operators. The findings of KPMG’s 26th edition of the Global Automotive Executive Survey indicate that the industry is moving away from a business model based on the one-time sale of a vehicle. Services and functions delivered throughout the vehicle lifecycle are becoming increasingly important, driven by developments in artificial intelligence and electrification. The competitive landscape is also being reshaped by Chinese manufacturers, while digital capabilities, battery technologies and new vehicle architectures are emerging as key determinants of competitiveness.
Six Key Takeaways from This Year's “Global Automotive Executive Survey”
Transformation as a Continuous Process
Industry leaders are redefining how they view transformation. Rather than being a collection of separate initiatives, such as electrification, digitalization or regulatory compliance, transformation has become a permanent feature of doing business. Companies must simultaneously redesign business models, build digital capabilities, restructure supply chains and respond to geopolitical uncertainty. As a result, the ability to adapt continuously is becoming just as important as the automotive industry's traditional strengths, such as manufacturing efficiency and scale.
Value Creation Will Extend Beyond the Factory
The industry's center of gravity is shifting away from vehicle manufacturing and sales toward software, data and digital services. New value is increasingly generated through software-defined vehicles, artificial intelligence, connectivity and services delivered after the purchase of a vehicle. Automakers are therefore competing not only on product quality but also on their ability to build long-term customer relationships and generate revenue throughout the vehicle lifecycle.
The car is evolving into a technology platform around which ecosystems of services, data and energy solutions are expanding. New sources of value are emerging in areas such as data-driven services, connected-car offerings, cybersecurity, onboard software, charging infrastructure and energy services.
Technology must not only be innovative but also trustworthy. Respondents indicate that over the next three years, success will depend not only on the speed of introducing new digital features but also on the ability to build user trust. As connected vehicles, digital services and artificial intelligence become more prevalent, expectations regarding data protection, cybersecurity and reliability continue to rise.
China and New Sources of Competitive Advantage
Respondents expect Chinese manufacturers to strengthen their position in global markets even further. Their advantage stems not only from production scale or the size of the domestic market, but above all from expertise in battery technologies, electric mobility, software and digital innovation.
At the same time, the criteria for competitiveness are changing. Companies are increasingly judged by the speed of technology deployment, the integration of hardware and software, and their ability to build partnerships across the broader mobility ecosystem. These factors are likely to play a decisive role in shaping industry leadership over the coming decade.
„The findings of the report are particularly relevant for Poland, as our economy is one of Europe's key hubs for automotive component suppliers and assembly plants, operating within a model that respondents believe is gradually losing relevance. Battery and electric drivetrain production remain important strengths, helping Poland become a significant part of the European electric mobility supply chain.
However, this transition is not without challenges. Poland is gradually losing importance as a producer of internal combustion engine vehicles, and the future growth of the sector will increasingly depend on its ability to attract investments in electric mobility, electronics, semiconductors and advanced manufacturing technologies.
Value within the industry is also shifting toward software and data, meaning that Polish manufacturing facilities will need to evolve more rapidly from execution-focused operations to co-creators of technology. Poland's large pool of engineers and software development centers provides a strong foundation, although most currently operate within global corporations rather than developing proprietary products and technology platforms.
Another factor affecting competitiveness will be the growing presence of Chinese manufacturers. This trend is already visible in the Polish market, where Chinese brands are rapidly increasing their share of new vehicle sales and imports. On the one hand, this could stimulate new investments and support the development of local supplier networks. On the other hand, it will increase cost and technology pressures on both European and domestic manufacturers.
At the same time, the European automotive industry is increasingly focused on protecting competitiveness and strengthening regional value chains, which may influence investment priorities across the region in the coming years.
The report also correctly highlights that the key challenge is no longer the development of new technologies, but their successful implementation and scaling. This applies to AI and software solutions, transport electrification and manufacturing automation alike. Across Europe, the critical differentiators are no longer ambitious transformation targets, but access to capital, infrastructure and a regulatory environment that enables investment.
Companies that learn how to convert emerging technologies into scalable business models more quickly will be best positioned to build sustainable competitive advantages over the next decade.”
We encourage you to explore the full KPMG report
Global Automotive Executive Survey 2026
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