Survey shows innovation driving automotive industry optimism
1118 executives across automotive and adjacent industries take part in KPMG's Annual Global Automotive Executive Survey
1118 executives across automotive and adjacent industries take part in KPMG's Annual Globa
KPMG survey shows innovation driving optimism, despite current challenges for the automotive industry
Over half (59%) of UK automotive executives say that by 2030 most vehicle sales will take place online, and (56% say) that electric vehicles (EVs) will make up between 70-100% of all new vehicle sales in western Europe.
The findings come from KPMG’s 22nd Annual Global Automotive Executive Survey, which this year sought the views of 1118 executives across automotive and adjacent industries, including 372 CEOs.
Globally, the number of executives saying that there will be a major shift to most vehicles being sold online by 2030 is even greater, at 78%. While around three-quarters predict that more than 40% of vehicles will be sold directly by automakers to consumers, bypassing dealers.
Automotive executives are confident that electric vehicle sales will be a key part of this transition to online, with EV adoption forecast to grow dramatically. Whilst there is no consensus globally about what market share EVs will capture by 2030, 56% of UK executives surveyed said electric vehicles will make up between 70-100% of all new vehicle sales in western Europe by 2030.
Other electric vehicle related findings show:
- 77% expect consumers to require charge times of under 30 minutes when traveling.
- 77% also believe EVs can be adopted widely by 2030 without government subsidies. However, 91% of global executives supported such programs.
Reflecting on the findings, Richard Peberdy, Head of Automotive, KPMG UK, said:
“Whilst supply chain and other cost challenges continue to be a concern, the global automotive industry remains optimistic, in large part due to the innovation being delivered both now and in the coming years.
“Industry executives are buoyant about EV prospects but are clear that charging infrastructure must keep pace. Carmakers are also eyeing more direct to consumer selling online.”
The majority of global executives surveyed predict that autonomous ride hailing and / or delivery will be commercially available within major cities in western Europe, U.S., China, and Japan by 2030. Also, more than half (58%) believe that flying cars, known as electric vertical take-off and landing aircraft (eVTOLs), will be available in most major cities by 2035.
Richard Peberdy, added:
“Embracement of technological advancements also present reason to believe that cars that were once a fantasy, such as autonomous and flying, are getting closer to becoming a reality.”
Globally, automotive executives are more confident (53%) than concerned (38%) that the industry will see more profitable growth over the next five years, despite over 50% of respondents being “extremely” or “very worried” about the supply of materials and 55% very or extremely concerned about labour shortages.
Gary Silberg, Global Head of Automotive at KPMG, said:
“It’s encouraging to see such widespread optimism about the growth prospects for the auto industry, but car manufacturers have rarely faced such an array of technological and business-model changes since the dawn of the automotive industry 130 years ago. There are urgent questions executives need to answer right now, including have they learned recent lessons to build more resilient supply chains and address labour shortages.”
Notes to Editors:
For interview with Richard Peberdy, Head of Automotive, KPMG UK, contact: Steven Reilly-Hii, Media Relations Manager, KPMG UK, at firstname.lastname@example.org or 07510 376635.
About the survey:
KPMG conducted a global survey of 1,118 executives across automotive and adjacent industries in August 2021, including 372 CEOs, 325 other C-level executives, heads of business units and departments and managers. About a quarter (24%) work for car manufacturers, and 13% for Tier-1 suppliers. Truck manufacturers employ 11% of respondents. Companies with annual revenues of more than $10 billion in 2020 employ 27% of respondents, while 35% have annual revenues between $1 billion and $10 billion and 38% have revenues less than $1 billion. 32 UK executives were included in the survey.
KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff. The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020. KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.