24th Annual Global Automotive Executive SurveyGetting real about the EV transitionIt’s still an exciting—and rewarding—journey, but it may take longer and the ride won’t be smooth.KPMG. Make the Difference.kpmg.com/automotiveForewordOur 24th Annual KPMG Global Automotive Executive Survey comes at a pivotal moment for automakers. The business opportunities have never seemed greater, driven by advances in electric powertrains, self-driving technology, and the promise of a more magical customer experience in the vehicle. In the factory, the showroom, and on e-commerce sites, AI and other technologies are changing how cars are made, sold, and serviced.Three years ago, when we published “Place your billion-dollar bets wisely: Powertrain strategies for the post-ICE automotive industry,” we laid out the challenges and opportunities in the development of the market for electric vehicles. Then, even predictions of analysts diverged on how rapidly EVs would penetrate global markets.1 Last year there was still wide variation in expectations about EV uptake among executives in our annual survey.2 But our latest survey of more than 1,000 executives in 30 countries and territories, shows that the industry is becoming more sober about market prospects. Having committed more than half a trillion dollars to the EV transition, the industry is asking when companies will see a return on the investment. Interact with the dataReaders can go to our website to interact with the data and view graphical results by country, company type and job title. Explore nowOur 24th annual survey examines in detail how executive sentiment is changing and the concerns and challenges that make global automotive leaders more cautious. The upshot: to help ensure companies end up as winners, not losers, executives should rethink their strategies and ask themselves some important questions: • Is the current slowdown in the growth rate of EV sales merely a pause or a sign of a more prolonged reassessment by consumers? Will their enthusiasm be rekindled by the new models about to hit the market?• How long will it take to turn a profit on battery-electric vehicles (BEVs) and will manufacturers have enough cash to see them through?• Will governments continue to be able to afford to subsidize the purchase of BEVs? • What role will other powertrain choices such as hybrids and hydrogen fuel cells play in the market?• What are the strategic choices for suppliers that are being squeezed by market changes, new competition, and rising demands of original equipment manufacturers (OEMs)? How can they thrive, not merely survive, in this new market?• How much should automotive firms vertically integrate—in car operating systems, battery supply chains, and computer chips? Finding the right answers to these and other strategic questions will help determine how companies succeed in the...
