KPMG survey: despite consumer trends, tech innovation low on auto execs’ agenda.
Battery-electric mobility faces a decline in popularity as automotive executives focus on traditional trends including optimizing the internal combustion engine (ICE) and growing in emerging markets, according to KPMG’s 2015 Global Automotive Executive Survey. Increasingly strict regulatory standards will maintain the focus on improving current engines while declining oil prices are negatively impacting the appeal of electric mobility and battery-powered alternatives.
With this increasing focus on traditional concerns and decline in e-vehicle interest, the survey also found less emphasis is being placed on newer, industry-changing developments such as self-driving cars, connectivity, urban vehicle design and mobility services. This identifies a major disconnect between the priorities of industry executives and their increasingly tech-savvy target customers who are demanding cutting-edge, connected car solutions.
Key survey findings – what matters to Canadian drivers?
“Auto executives in North America and around the world are focused on traditional concerns such as optimization of fuel-driven combustion engines and cost efficiency programs. They are trusting that emerging markets will be the main growth drivers of our sector for a long time to come.”
“Relying on traditional trends could leave major auto players highly vulnerable to new competitors eager to attract the never-offline customer of today with continued innovation in mobility services and vehicle connectivity technologies.”
“More and more car consumers are expecting vehicle manufacturers to surprise and delight them by integrating new and innovative services and mobile apps into the car driving experience. In a lot of ways, the car is the final frontier – following the home and the office. Traditional automotive players must reassess their priorities to keep abreast of consumer demands and stay ahead of the game.”
The Global Automotive Executive Survey is KPMG International’s annual assessment of the current state and future prospects of the worldwide automotive industry. In this year’s survey, 200 senior executives from the world’s leading automotive companies were interviewed, including automakers, suppliers, dealers, financial services providers, rental companies and mobility solution providers.
KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG International Cooperative (“KPMG International”). KPMG member firms around the world have 162,000 professionals, in 155 countries.
The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.