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automotive executive summary KPMG

The Top 5 Findings from Global Automotive Executive Summary by KPMG

Nov 28, 2017

We recently delved into the 18th consecutive, 56-page Global Automotive Executive Summary by KPMG. Filled with colourful, well-appointed graphs and endless insights, it was a difficult task, but we’ve managed to summarize it here for you. While top 2 of KPMG’s latest report are slightly shocking to us, number 5 makes a lot of sense.

1. internal combustion engines to remain relevant to oems

As stated in the report, 76% of executives see ICE’s (internal combustion engines) as still being more important than electric technologies for a long time to come. While revolutions are occurring at a fast-pace in the auto industry with more readily-available and affordable electric vehicles, OEMs are still grasping onto the old, internal combustion engines, with the view that EVs will take a long time to implement on a large scale. However, with CO2 goals driving the revolution of electric vehicles, the fast-paced nature of this switch might be more apparent in the coming years.

2. battery electric vehicles will fail; fuel cell electric vehicles will win

The major difference between battery electric vehicles and fuel cell electric vehicles? BEVs run exclusively on electricity by batteries that are charged by plugging into an outlet or charging station, and FCEVs have an electric motor like a BEV, but stores hydrogen gas in a tank instead of recharging.

Even though battery electric vehicles are a main trend, 62% of executives believe BEVs will fail due to a lack of being able to successfully set up infrastructure for charging.

3. BMW is perceived as the leader in Autonomous Driving Technology

Also leading as the perceived electric mobility pioneer at 16% of votes, 27% of executives voted BMW as the leader in autonomous driving technology. 

Followed by Tesla, which captured 9% of executive votes of AV technology, the votes surprisingly do not coincide with the products currently offered by each of the OEMs. Tesla has marketed conditional automation in their EVs on the third level of automated driving, while BMW currently offers only partially automated technology while the driver is still responsible for monitoring.

4. In the future, the digital ecosystem will generate more revenue than the hardware of the car itself

As cars start to drive themselves, the main revenue stream shifts away from the hardware and towards the digital ecosystem, with data being the core and most essential element.

While the challenge of making this new ecosystem profitable awaits the arrival of AVs, the report showed that CEO/Chairmain/President titles agreed the most about this being the major new revenue stream (47%).

5. 50% of car owners today won’t want to own a car by 2025

While it is perhaps more subtle, the tendency away from car ownership is already relevant today, particularly amongst the millennial generation and early adopters of shared mobility. This is bound to make an even stronger shift away from car ownership when the discomfort of owning a car – traffic congestion, lack of parking spaces, and cost – overcomes the utility and convenience factors of owning a car. With many other opportunities arising in shared mobility and autonomous vehicles, 59% of executives agree that by 2025, half of today’s car owners won’t want their cars anymore.

Analyzing these predictions and opinions of the current global automotive industry, we agree with some and disagree with others. What are your opinions? Get in touch with us for a chance to be featured on our blog here.


 

We are the only end-to-end agency for shared mobility projects. We provide strategy, service and product design as well as project implementation and launch support.

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