KPMG Luxembourg organised for the second time a breakfast dedicated to the automotive sector. KPMG’s Automotive Breakfast aims at providing to hand-picked guests a panorama view of the automotive activity in Luxembourg, as well as giving insights on global automotive trends. To conclude the event, Joost Ortjens, the head of the Luxembourg Automotive Components Cluster, presented the cluster and its activities.
To set the mood for this event, KPMG Luxembourg invited several prestigious car brands. A Ferrari California, a BMW i8, a Mercedes AMG GT as well as the Tesla S were exhibited in front of the KPMG premises.
After a relative slowdown in 2013, the Luxembourg car market growth reached 2.57% in 2014. This growth comes with the progressive exit from the financial crisis and is underpinned by a regular leasing market. The minor decrease of new registrations in 2014 (-1.2%) is due to a slow aging of the car park.
At the same time, the luxury and high performance car brands grew by 50% in 2014, but only represent 0.3% of new registrations in 2014.
The local leasing market remains stable since 2 years, with a market share of 13.9% in 2014. It’s accountable for nearly a third of new registrations each year.
Louis Thomas, Head of the Automotive Sector at KPMG, commented:
“The automotive commercial sector in Luxembourg represents a turnover of €3.68 billion, up a whopping 7% since 2010. It now employs around 7000 employees in the commercial sector – again showing a high level of growth of +6% since 2010”.
Finally, the automotive commercial sector in Luxembourg represents a turnover of €3.68 billion (+7% compared to 2010), and employs around 7000 employees of the commercial sector (+6% compared to 2010).
Electric and hybrid cars have grown by 31.8% since 2013. It's a significant increase but it still represents only 0.7% of the market in 2014.
The CO2 emissions of cars are constantly decreasing and Luxembourg will most probably reach the EU recommendation for 2015, which is of 130g CO2 per km. But at this pace, the EU recommendation for 2020 (95g CO2/km) will not be reached.
KPMG‘s Global Automotive Executive Survey 2015 gives answers to four questions:
What is driving consumer demand? The views of automotive executives tend to reflect concerns over current commercial challenges, suggesting a lack of consensus over the shape of the future mobility eco-system.
Are companies betting on the right technologies? According to this year’s survey, the optimization of traditional fossil fuel-based propulsion technologies still dominates the technological roadmap.
Is the industry set for an unstable mobility eco-system? Executives are very optimistic that traditional automotive players can cope with an increasingly unstable mobility eco-system in the short term.
Who is best positioned for sustainable growth? Executives feel there will be no major shift of power between OEMs until 2020.
Our automotive leaders introduced the recent strategic alliance between KPMG and McLaren Technology Group to apply McLaren Applied Technologies’ (MAT) predictive analytics and technology to KPMG’s audit and advisory services. KPMG will be working with McLaren to jointly invest and develop a unique range of audit and advisory services. #KPMGMCLAREN.
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