Bangkok, Thailand, 11 November 2026: ASPAC is emerging as a key driver of the next phase of automotive transformation, according to KPMG International’s 26th Global Automotive Executive Survey, as executives increasingly expect industry value pools, technology capabilities and competitive influence to shift towards the region.
The research, which surveyed 775 senior automotive executives globally, finds growing expectations of China’s long-term influence. Nearly half (48 percent) of respondents believe six of the world’s top 10 automotive OEMs could be headquartered in China by 2035.
ASPAC companies also report relative strength in several capabilities expected to shape future automotive competition. Fifty-seven percent of respondents are making significant investments in AI and emerging technologies, compared with 52 percent in Europe and 48 percent in the Americas. Fifty-two percent of respondents describe autonomous-driving and advanced driver-assistance systems business integration as established or embedded, while 50 percent report established or embedded policies and governance for the ethical and compliant use of AI and data, compared with 45 percent in Europe and 39 percent in the Americas.
China and ASPAC reshape automotive value pools
There is an expectation from survey participants that six of the world's top 10 OEMs could be headquartered in China by 2035 reflects a broader shift in automotive value creation towards ASPAC and technology-led growth. China is accelerating the transition away from traditional hardware, while batteries, electronic control units, software platforms and AI are expected to capture a growing share of industry profits. At the same time, ASPAC remains highly diverse. While China is advancing rapidly towards electrified mobility, markets including India, Japan and Southeast Asia are expected to support multiple powertrain technologies for years to come.
Koichi Iguchi, Head of Automotive ASPAC region, and Partner, KPMG Japan, said:
“There is no single playbook for the automotive market across Asia Pacific. The pace of electrification and software adoption, the mix of powertrains, and customer needs vary significantly from market to market, and that diversity is likely to persist. At the same time, geopolitical and trade uncertainty is making decisions about where to manufacture, source and invest increasingly market specific. Building resilience comes at a cost. Companies should decide how much they are prepared to pay for greater flexibility and security of supply, where to allocate scarce capital across markets, products and geographies, and how quickly those decisions can be translated into action. The ability to manage these trade-offs effectively should increasingly shape competitive advantage across the region.”
Software is becoming the global competitive battleground
Across the globe, fifty-one percent of automotive executives surveyed expect software and digital technology to become the primary source of competitive differentiation by 2035. Forty-nine percent already describe their software-defined products and over-the-air capabilities as established or embedded, while 42 percent say the same of their overall software-defined vehicle strategy.
Execution remains a challenge. On average, only 36 percent of AI and software initiatives have scaled beyond pilot and been adopted across the organization. Ninety-two percent of companies surveyed say it takes at least 12 months to move a new digital, software or AI capability from pilot to enterprise-wide deployment, including more than one-third that need over two years.
Success may also depend on deploying technology at scale, adapting operating models and maintaining trust as vehicles and customer journeys become more connected and digital. Half of the executives surveyed globally believe trust in digital and connected features will influence which companies win or lose over the next three years.
Ecosystems become central to future growth
The breadth of capabilities required for electrification, software platforms, AI and changing customer expectations means companies increasingly recognize that they cannot build everything alone. According to the report, globally, the share of value creation enabled by external partnerships and ecosystems is expected to rise from 30 percent today to 44 percent over the next three years.
The report’s ASPAC perspective identifies three priorities for the region: shifting resources towards technology-driven value pools, managing multiple mobility futures simultaneously and building ecosystems that connect software, energy and mobility. These choices are likely to require companies to decide where to lead, where to partner and which capabilities should remain under their control.
Dr. Andreas Ries, Global Head of Automotive, KPMG International, said:
“The next decade of growth may not be defined by a single market or technology. Success is likely to come from identifying where future value is emerging and moving quickly enough to capture it. ASPAC is likely to play a central role in shaping that future.”
Songpon Kiatlertpongsa, Deal Advisory Partner, KPMG in Thailand, said:
“The automotive industry is entering a new phase where competitive advantage will increasingly be defined by software, AI and ecosystem partnerships rather than manufacturing scale alone. For Thailand and the broader ASEAN region, the opportunity lies in leveraging our strong automotive base while adapting to multiple mobility pathways, from electrification and connected vehicles to emerging digital services. The companies that will lead the next decade are likely to be those that can successfully combine technology adoption, operational resilience and customer trust at scale.”
