Back in the driver’s seat: KPMG’s 25th Global Automotive Executive Survey reveals how industry leaders are accelerating past disruption

Highlights:

• 36% of automotive executives say their company is entering a phase of deep transformation — with business models, products, and operations expected to change significantly over the next three years and beyond.
• 86% of OEMs are investing heavily in artificial intelligence (AI), yet only 20% of executives feel prepared to manage the disruption it will bring.
• Only 16% of overall respondents identify customer satisfaction as crucial for long-term profitability, with almost 50% of leading companies seeing it as a top strategic priority.
• 94% of companies that are “very prepared” for supply chain disruption report outperforming profit targets, compared to just 45% of those less prepared.

London, UK – 4 September - The global automotive industry stands at a pivotal moment. Amid intensifying cost pressures, geopolitical volatility, supply chain fragility, and shifting consumer expectations, many companies are struggling to adapt. KPMG’s 25th Annual Global Automotive Executive Survey (GAES) captures the perspectives of 775 senior executives across OEMs, suppliers, dealerships, mobility and financial services, offering a comprehensive view of how the sector is responding to disruption.

Now in its 25th year, the survey reveals a dramatically altered landscape. A small cohort of high-performing companies—representing the top 15% of respondents—are not only navigating change but leveraging it, outperforming peers in innovation, customer satisfaction, and operational efficiency. Their success is anchored in five strategic imperatives (five Ts of Transformation): Spearhead Transformation, Master Technology, Earn Trust, Navigate Tensions, and Thrive Together. This framework is emerging as a clear differentiator between industry leaders and those at risk of falling behind.

Investment in artificial intelligence (AI) and emerging technologies is accelerating across the automotive industry, with 86% of OEMs reporting significant commitments to AI. Executives expect these investments to drive measurable productivity gains, particularly in research and development (48%) and supply chain optimization (46%). Yet despite the momentum, only 20% of leaders feel “very prepared” to manage the disruption these technologies will bring—revealing a widening readiness gap where risk is escalating.

A major catalyst for this shift is the rise of software-defined vehicles (SDVs), with 87% of respondents anticipating autonomous driving will become standard across vehicle types by 2030. However, SDVs also introduce new vulnerabilities, including cybersecurity threats and data risks. These concerns are especially pronounced in the EMEA region, where 71% of executives cite them as concerns, compared to 64% in the Americas and 54% in ASPAC. As digital complexity grows, companies must make strategic decisions about which technologies to own, co-develop, or outsource—particularly those tied to safety and customer trust. The ability to control and secure core systems will be a defining factor in the race to lead the next era of mobility.

Customer satisfaction remains a significantly underprioritized area in the automotive industry, with only 16% of all executives identifying it as critical to long-term profitability—most continue to focus on productivity as the primary driver of performance. In contrast, leading companies are setting a different benchmark: 48% rank customer satisfaction as a top strategic priority, compared to just 10% among their peers. However, fragmented digital experiences are eroding customer engagement, as consumers increasingly expect seamless, personalized interactions across the entire vehicle lifecycle. A third of executives acknowledge that the shift to digital sales has made it more difficult to build meaningful customer relationships. This challenge is especially pronounced in the electric vehicle (EV) market, where affordability and infrastructure limitations are slowing adoption. Despite these headwinds, 84% of companies still feel responsible for driving EV demand—underscoring the urgent need for more customer-centric innovation to sustain growth and loyalty in a rapidly evolving market.

Geopolitical fragmentation remains one of the most disruptive forces impacting the automotive industry. Rising volatility, excess capacity, and diverging regulatory frameworks are compelling companies to reassess their sourcing, production, and go-to-market strategies. When asked to identify the most disruptive factors over the next three years, global executives pointed to sustainability and supply chain transformation. Notably, in the ASPAC region, 27% of respondents cited geopolitical and economic pressures as their top concern. In response, 68% of companies in our research (including 81% of the leading companies), are actively restructuring their supply chains through nearshoring, friendshoring, and local-for-local models. These strategic shifts are delivering measurable results: 94% of companies that consider themselves “very prepared” for supply chain disruption report outperforming profit targets—compared to just 45% of those less prepared. As global uncertainty intensifies, supply chain resilience is proving to be a decisive factor in financial performance and competitive positioning.

To read KPMG’s Global Automotive Executive Survey in full, go to: 25th Annual Global Automotive Executive Survey

Brian O’Neill
Senior Manager, Global Strategic Communications & Media Relations
KPMG International
T: +44 7823 668 689
E: Brian.O’Neill@kpmg.co.uk

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