ΑΥΤΟΚΙΝΗΤΟΒΙΟΜΗΧΑΝΙΑ
- 30 Apr 2023
- economy
Global auto industry executives are confident the auto sector will achieve more profitable growth over the next five years, with expectations for global electric vehicle sales in 2030 becoming more realistic. At the same time, executives remain particularly concerned about the supply of raw materials and components.
According to KPMG's 23rd annual “Global Automotive Executive Survey” of 915 automotive and related industry executives, 83% are optimistic that the industry will record more profitable growth over the next five years, compared to 53% last year . Thus, from the survey, which involved 207 CEOs and Presidents, it appears that they show more caution about short-term results, given the potential difficulties that the macro economy will face.
"Automotive executives are extremely optimistic about the future, but at the same time their optimism is tempered by the need to make the industry's dreams come true," says Gary Silberg, Global Head of Automotive at KPMG. “Automakers have poured more than half a trillion dollars into developing an impressive variety of new vehicles built in advanced facilities. To deliver on their promise, car companies will need to take different paths to their destination. Some will lead to great success, others may end up in failure."
The future of engines
Executives expect the market share of electric cars to grow to around 40% of total sales by 2030. Last year, forecasts reached 70%. Expectations for electric car sales in Japan, India and Brazil are now much more cautious.
There is, however, greater certainty that the cost of electric vehicles will equal that of internal combustion engines without government assistance. 82% believe that electric cars will be widely adopted in the next 10 years, without government subsidies.
Digital consumers
With a plethora of new models, newcomers and new technologies, executives believe that consumer purchasing decisions over the next five years will focus on the importance of driving performance and brand reputation. Data privacy and security are also key factors in any purchasing decision.
Automotive customers are expected to increasingly shop online, but also be willing to pay monthly subscriptions for software services. The car insurance market is seen as a growth opportunity for car companies.
Vulnerable supply chains
Executives remain largely concerned about supplies of raw materials and components, particularly semiconductors, but also materials such as electrical steel and other lightweight materials critical to fuel efficiency and battery life. Automakers respond to this weakness by seeking outsourcing to nearby countries as well as within their own country (nearshoring and onshoring), in an effort to reduce dependence exclusively on one or two countries.
