executive summary automotive executive survey 2019

KPMG’s 20th consecutive Global Automotive Executive Survey 2019

automotive-institute.kpmg.de

EXECUTIVE SUMMARY

Seamless Vehicle2Grid transition is a treasure of islands – see them sooner with KPMG.

59 %

56 %

56 %#3 #3

#2

#1

#3

#2 #2

#1#1

Fuel cell electric mobility

2017 (n = 953)

2018 (n = 907)

2019 (n = 981)

Percentage of executives rating a trend as extremely important

Connectivity & digitalization

Battery electric mobility

#1

#2

#3

by 2030today 5 %15 %

G L O B A L C A R P R O D U C T I O N V O L U M E : 1 3 4 . 2 7 M

30 % BEV

35 % Price

24 % Charging

18 % Range

25 % PHEV

23 %FCEV

23 %ICE

3KPMG’s Global Automotive Executive Survey 2019 3KPMG’s Global Automotive Executive Survey 2019

Foreword & our heritage 4

About the executive survey 6

Exploring the future ecosystem 8MEGATRENDS BEYOND THE OBVIOUS 10

PRODUCT VALUE 18

CUSTOMER VALUE 26

ECOSYSTEM VALUE 32

KPMG Thought Leadership 44

Acknowledgements 46

How to use the online platform 47

Table of contentsGlobal Automotive Executive Key Trends until 2030

“Connectivity & digitalization is back as the number one key trend. This is followed by battery electric vehicles, while last year’s number one key trend, fuel cell electric vehicles, ranks third.”

Share between ICE, PHEV, BEV and FCEV in 2040 “Multiple drivetrain technologies will co-exist alongside each other – global execs believe in a fairly even split of BEVs (30 %), Hybrids (25 %), FCEVs (23 %) and ICEs (23 %) by 2040.”

Challenges for battery electric vehicles “The main reasons for consumers to stay away from an electric car are price, charging experience and range concerns.”

West European car production in 2030 “Western Europe continues on a downward spiral – 2 out of 3 (67 %) execs still believe that by 2030 less than 5 % of global car production will originate in Western Europe (~15 % today).”

There is not only one global answer Multiple filter possibilities enable you to try correlations and to find out more about differences between e.g. regional perspectives or differing stakeholder views! Executives and consumers were asked many of the same questions. Compare answers of both respondent groups and also see that they were asked more than just conventional survey questions!

This printed version is an extract of the millions of different possible views in the Global Automotive Executive Survey 2019.

The best of The early release of the online platform made it possible to analyze user behavior and to identify those issues that receive most clicks and catch peoples greatest interest. With the hardcopy you are now provided the survey’s most important elements and this year’s hottest topics around the future ecosystem of the auto business.

H O T T E S T T O P I C S O F T H E G A E S 2 0 1 9

1. New look The platform has a completely new look: structured and easy-to-use!

2. New functionalities Print-, share- and search function are now integrated!

3. Analyses More interactive analyses than ever before!

4. Mobile version A comprehensive mobile version for on the go!

5. Respondents Most executive respondents than ever!

Over

2,000,000different views

read more p. 13

read more p. 12 read more p. 21

read more p. 23

Table of contents

W H A T ’ S N E W I N 2 0 1 9

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.

© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.© 2019 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.


4

Foreword Our heritage

5KPMG’s Global Automotive Executive Survey 2019

Dear Readers,As the mobility ecosystem matures, we often wonder what developments can be expected and which route to take. Over decades, this question could be answered easily in a global context, because our offer was driven by the market. Steered mostly by technol ogy developments for customers and markets, we determined which developments would be intro-duced to which markets. Previously, there were not many alternative forms of personalized transportation – to my mind, one thing is certain when envisioning the future: there will be no global answer and we shall differentiate between product-, customer- and ecosys tem value on the roadmap as we explore the route towards treasure island.

For 20 years now, looking far beyond the obvious has always been at the core of our annual Global Automotive Executive Survey. Throughout this time, we have always aspired to leave our readers a little puzzled by or even questioning the thought-provoking ideas that

we have published. Looking back on the statements we’ve made in recent years, I am very proud to say that all of these provocative ideas have transformed into what can be considered common knowledge today.

“Seamless Vehicle2Grid transition is a treasure of islands waiting to be explored like a treasure island.”In order to support our readers on this exploration roadmap, this year we have created the “Automotive Institute” dimension in addition to the executive and consumer perspective, which provides our readers with a comprehensive tool for looking beyond the obvious.

I am therefore – as always – very delighted to invite you to join us in exploring this future ecosystem and what’s next; because nothing drives progress faster than embracing new ideas together.

Enjoy the read and stay tuned!

D I E T E R B E C K E RGlobal and EMA

Head Automotive Practice

2011“Within the next decade the internet will revolutionize private transport. Web providers and car manufacturers will be vying for supremacy.”

2012“New non-asset based players will increase in significance in the automotive value chain until 2025.”

2013“Get ready for the post powertrain ecosystem. Acceleration is not all that matters in self-driving cars.”

2014“The automotive industry will have to adapt to and shape the converging world of personalized mobility and the internet of everything.”

2018“The auto business is part of an open, dynamic & self-organizing ecosystem consisting of physical assets, services and content. Finding the right balance between where to compete, cooperate or consolidate with industry peers and to wisely co-integrate content from non-asset based digital challengers is key.”

For 2019 I would like to provoke your thoughts with the following:

“ Seamless Vehicle2Grid transition is a treasure of islands waiting to be explored like a treasure island.“

2015“OEMs need to think about how to reshape their business model from a genuinely product-driven approach to a more service- and customer-oriented model.”

2016“Mobile connectivity, the value of customer data and self-driving cars are the next big thing.”

2017“Say goodbye to a complete auto-digital fusion – say hello to the ‘next’ dimension of co-integration.”

Executives

Dimensions

Consumer

Automotive Institute NEW



Energy / Infrastructure providers

26 % 35 %12 % 15 % 12 %

Vehicle manufacturers

Suppliers

ICT companies

Mobility service providers

Dealers

Financial services

Government authorities

23 %

21 %

16 %

13 %

9 %

9 %

5 %

5 %

225

204

153

131

85

88

45

50

CEO / President / Chairman C-level Executive Head of Department Business Unit Head / Functional Head Business Unit / Functional Manager

Over $ 10 billion > $ 1 billion < $ 10 billion > $ 500 million < $ 1 billion

> $ 100 million < $ 500 million Less than $ 100 million

Upstream Player Downstream Player Surrounding Player

25 %

26 %18 %

15 %

16 %

981total

Western Europe

25 %

India and ASEAN

12 %

South America

11 % Rest of World

6 %

Eastern Europe

12 %

China

11 %

Mature Asia

9 %North America

14 %

76 KPMG’s Global Automotive Executive Survey 2019

About the executive surveyAbout the executive survey

FOR THE 2019 SURVEY WE GATHERED THE OPINIONS OF 981 EXECUTIVES FROM 41 COUNTRIES.

Respondents by job title Respondents by company type

Respondents by regional cluster Respondents by company revenue

North America (n = 140) South America (n = 106) Western Europe (n = 247) Eastern Europe (n = 114) Mature Asia (n = 93) China (n = 110) India and ASEAN (n = 117) Rest of World (n = 54)

Japan

Australia

Canada 7

110USA

Mexico 23

Colombia 16

Ecuador 4

Argentina20

Brazil66

Nigeria 7

Morocco 2

Spain 7

Italy 24

Austria 4

France 24

UK 55

Belgium 4

Netherlands 10

Switzerland 5

Germany 56

Norway 7

Denmark 39

Sweden 10

Finland 2 Poland7

Czech Republic2

Hungary9

Romania8

Turkey61

Russia27

India 40

Indonesia 20

Saudi Arabia19

South Africa20

6

Malaysia15

Thailand20

Philippines8

Vietnam7

Taiwan7

China110

South Korea37

56

About the executive survey

Note: Executives (n = 981); map shows number of respondents from each country



RegulatorMobility & logistics

Key trends

Islands

China dominatesRaw materials

Western Europe Declines

Industrial policies

Fuel Cell

Hybrids

Investment area

ICEs

TCO

Infrastructure

Battery electric

Autonomous drivingPurchasing efforts

on demand

Individualized in Mgmt.

Seamless & hassle-free

Retail transformation

Customer relationship

Investment paths

Growth strategy

Safe environment

Cooperations & start-upsCo-ompetition

Market capProfitability

Data ownership & trust


Exploring the future ecosystemExploring the future ecosystem

Be inspired by the key headlines

Automotive key trendsSeamless into the grid: connectivity & digitalization is back as the #1 key trend

There is not only one global answer – the world is a combination of islands

The perfect storm: auto industry is heading into a restructuring phase

Regional shifts2/3 of execs believe that less than 5 % of cars will be produced in Western Europe by 2030

China is the future e-mobility market – more than ever before, execs agree that China will leapfrog the market with its battery electric vehicles

Underestimated driving forces3/4 execs agree that raw materials will drive a country’s preferred powertrain technology

From architect to executor: 77 % of execs agree that the regulator will drive OEM agenda – not to forget also being driven by industrial policy

Results show that industrial policies in Asia & USA seem to be far more advanced than in Europe

Mobility & logistics 60 % of execs agree: we will no longer differentiate between transport of humans & goods in future

Companies combining applied thinking (city, rural, countryside) with an ecosystem-driven technology set-up (CASE) and infrastructure joint ventures (5G, electricity grid, …) will be mobility leaders

MEGATRENDSFuture of combustionMultiple drivetrain technologies will co-exist alongside each other – global execs believe in a fairly even split of BEVs (30 %), Hybrids (25 %), FCEVs (23 %) and ICEs (23 %) by 2040

Fuel cells have the least investment priority among execs

Electric readinessFor consumers, the most significant entry barriers into the electric world are price, followed by charging and range

We believe Tesla will be one of the most significant brands in vehicle-to-x technology

Autonomy readinessSeparation instead of integration in islands of autonomy – agreement by 71 % of execs that human driven & autonomous vehicles won’t mix

What about separate lanes for autonomous & electric vehicles, incorporating necessary infrastructure for seamless charging, while setting clear rules for on-road behavior?

88 % of execs agree to a product line by application (city, urban, …) rather than by class

PRODUCT VALUERetail of the futureRetail landscape transforms – nearly 50 % of execs are highly confident that the number of physical retail outlets will be reduced by 30–50 %

82 % of execs strongly agree that the only viable option for physical retail outlets will be transforming to service factories, used car hubs or focus on ID-management

The product continues to be the driving force behind retail strategy – 80 % of execs view the retail landscape as predominantly product-driven

92 % of execs agree that the aftermarket is most likely to become part of the OEM business

Customer centricityTrust that OEMs will own the customer relationship has increased for both execs (49 %) and consumers (42 %)

Data privacy & security remains the number one purchasing criteria, but transparency of TCO is also catching up

Mobility on demandGreatest potential for function on demand features lies in navigation systems, adaptive cruise control & power upgrade – those being the features consumers are most willing to pay for in order to individualize their vehicles

CUSTOMER VALUECo-ompetitionGravity further shifts towards the ICT companies: in 2018, market capitalization of the top 15 mobile, tech and web digital companies is ~5 times as high as that of top 50 auto players

Cooperation of auto and ICT players becomes more realistic than ever – 2 out of 3 execs believe in cooperation rather than competition

Data supremacyFor vehicle data there is growing evidence for OEMs being the winner

First safety, then performance – executives present a clear opinion that car companies can monetize data best with safety- and performance-oriented services

Revolutions always start silently

Executives show only very little fear that auto company profitability will decrease Execs expect the number of transactions to boost over the next years (69 %) – most likely dominated by China

81% of execs show confidence that a shift from traditional unit sales towards mobility service offers and fleet management may lead to an increase in debt levels of OEMs

Toyota is the undisputed leader with the highest prospects for success, followed by BMW & Tesla

ECOSYSTEM VALUE



Regulator

Mobility & logistics

Key trends

Islands

China dominates

Raw materials

Western Europe Declines

KE

Y T

AK

EA

WAY

S


Megatrends beyond the obviousMegatrends beyond the obvious

MEGATRENDS BEYOND THE OBVIOUS

The perfect storm: megatrends beyond the obvious as breakwaters for the automotive industry

The automotive industry is heading into a restructuring phase in which it becomes steadily more important to build on the core competencies and expertise developed over the last decades, while at the same time defining the role in the new ecosystem to secure future revenue streams.

After two years in second place, connectivity and digitalization is now back as the number one key trendIt is not surprising that 59 % of the respondents rank connectivity and digitalization as the most important automotive key trend up to 2030. This helped return it to the top-ranking trend after 2016, since a new future mobility ecosystem is evolving, which is based on the pillars seamlessness, individualized, safe and on-demand. The megatrend beyond the obvious

“underestimated driving forces” indicates that in this new ecosystem various drivetrain technologies will very likely exist side by side.

How strong is the automotive industry in Western Europe being hit by the wave of restructuring?While 67 % of executives believe that production in Western Europe will be less than 5 % by 2030 (today: 15 %), China is becoming the leading nation in terms of battery electric mobility, by becoming aware of its own core competencies. As a result, other countries become even more dependent on China.

From architect to executor: underestimated driving forces lead to change in the technological agenda Executives are convinced that while OEMs have declared themselves responsible for setting the technological agenda in past decades, the regulator will primarily drive the agenda for OEMs in the future – not to forget finally being driven by industry policies. One of the most interesting results in this context: 3 out of 4 execs believe indigenous raw materials to be the actual driver for a country’s preferred powertrain technology.

Are we heading towards a mobility and logistics ecosystem?The majority of all executives (60 %) believe that personal mobility and logistics can no longer be considered separately in the future. The marginal utility of consumers and the extent of cooperations between the various players determine the different regional landscapes of the ecosystem. A staggering number of executives (73%), however, is convinced that traditional public transport solutions will be replaced by on demand capsules in the ecosystem 10 years from now.

“How strong is the automotive industry in Western Europe being hit by the wave of restructuring?”67 % of execs believe that less than 5 % of cars will be produced in Western Europe by 2030.

“Seamless into the grid: connectivity & digitalization is back as the #1 key trend.”59 % of respondents rank connectivity & digitalization as the most important automotive key trend up to 2030.

“Are we heading towards a mobility and logistics ecosystem?”60 % of executives agree that in future we will no longer differentiate between the transportation of humans and goods.

“From architect to executor: underestimated driving forces lead to change in the technological agenda.”3 out of 4 execs believe indigenous raw materials to be the actual driver for a country’s preferred powertrain technology.

Automotive key trends

Underestimated driving forces

Mobility & logistics

Regional shifts

MEGATRENDS BEYOND THE

OBVIOUS



OEM captive financing and leasing (until 2015) Innovative urban vehicle design concepts (until 2015)

18 %

67 %25

42

14

4

14

+1

–8

+1

+5

+3

+3

0

0

+1

+4

Absolutely agree Absolutely disagree

Mature Asia

27

37

1126#7 #7 #7 #7

#9

#5 #5

#3 #3

#2

#1

#3

52

#6 #6

#4

#11#11 #11 #11

#12 31

#2 #2 #2 #2

#1

#10#10 #10 #10

#11 35

#3 #3

#8#8 #8 #8 #8

#10

44

#6 #6

#7

#6

#9#9 #9 #9

#1 #1 #1

#4 #4 #4 #4

#5 #5 #5 50

+456 Fuel cell electric mobility

047

Understanding the mobility ecosystem (since 2019)

040

Platform strategies and standardization of modules

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

#11

#12

2015 (n = 200)

2016 (n = 800)

2017 (n = 953)

2018 (n = 907)

2019 (n = 981)

Hybrid electric mobility (since 2016)

Market growth in emerging markets

+145

Creating value out of big data (since 2016)

043 Mobility-as-a-service

Autonomous and self-driving vehicles

Downsizing of internal combustion engine (ICE)

Rationalization of production in Western Europe

Percentage of executives rating a trend as extremely important

+959 Connectivity & digitalization

+756 Battery electric mobility

Western Europe

18

40

19

7

16

Eastern Europe

19

48

189

5

North America

1

34

46

10

9

South America

1

16

40

2914

Rest of World

30

37

77

19

China4

28

49

613

India and ASEAN

3

40

42

88

OV

ERA

LL A

VER

AG

E


Megatrends beyond the obvious | Regional shiftsMegatrends beyond the obvious | Automotive key trends

After two years in second place, connectivity and digitalization is now back as the number one key trendIt is not surprising that 59 % of the surveyed executives rank connectivity and digitalization as the most important automotive key trend up to 2030. This helped return it to the top-ranking trend after 2016, since a new future mobility ecosystem is evolving, which is based on the pillars seamlessness, individualized, safe and on-demand.

This year, for the first time, we surveyed executives not on key trends for 2025, but for 2030. The results show that the trends connectivity and digitalization, battery electric vehicles and fuel cell electric vehicles are the overarching key trends across all regional clusters and stakeholders in 2030. Downstream players rated the key trends in the same order as the executives as a whole. Among the upstream players, the trends also occupy the top three positions, but with battery electric vehicles, a product-driven trend is still at the top. This product-driven focus is particularly evident among OEMs, who do not share the overall consensus. As it turns out, OEMs have the greatest confidence in electric mobility, as FCEVs, BEVs and HEVs are the top trends this year.

All in all, it is not surprising that connectivity and digitalization has returned to first place again. After all, connectivity is clearly the single most important prerequisite for the provision of additional services and content provided in the car and emphasizes the need for an easy-to-use and seamless human-machine interface, which will become increasingly important as a new ecosystem evolves.

Western Europe still on a downward spiralAccording to this year’s results, 2 out of 3 (67 %) execs still believe that by 2030 less than 5 % of global car production will originate in Western Europe. This would only equal 6.1 million units of global production by 2030, based on current market forecasts. Interestingly, regional results indicate that respondents from India & ASEAN (82 %), North America (80 %) and China (77 %) agree most. The results indicate a dramatic development in Western Europe, where we are moving into a strong restructuring phase, which means that the entire market will have to think much further than just about a huge value chain shift.

Many new cooperation models will be necessary in the short term, otherwise the step up of some tier one suppliers and the step down of some mass manufacturers will lead to a big mismatch. In the future, we will also see a stronger distribution of roles and specialization among the different players. There will be players whose sole focus will be on remanufacturing and recycling cars and components and there will be OEMs that are just contract manufacturers, while at the same time tier one suppliers will step up into the OEM field. On the other side, there will also be players with a strong focus on the integration of the asset into the non-asset world.

Creating seamless connectivity is a real opportunity for Western Europe to secure profitability. It is necessary for European OEMs to invest heavily in automation around Industry 4.0 and digital labor in order to further utilize and expand their technological advancement and to create assets, which are best equipped for easy and seamless connectivity with the customer’s life.

Global Automotive Executive Key Trends until 2030By 2030 less than 5 % of the global car production will originate from Western Europe (2018: ~15 %).

Note: Executives (n = 981); percentages may not add up to 100 % due to rounding; figures and deviations from the previous year 2018 (n = 907) in percent

Note: Executives (n = 981); figures and deviations from the previous year 2018 (n = 907) in percent

E X E C U T I V E E X E C U T I V E



40k

35k

30k

25k

20k

15k

10k

5k

0k 1k 3k 5k 7k 9k2k 4k 6k 8k 10k

Real GDP ($bn)

Pers

on

al d

isp

osa

ble

inco

me

per

cap

ita

($)

2018

2018

20182018

Russia2022

Indonesia2022

India2022

China2022

2018 2022

Brazil2022

Sweden2022

UK2022

Germany2022

2018

20182018

2018

Congo, D.R.

Brazil

United States

China

3 %Cobalt

Cobalt development2012–2016 (in t)

2012 2016Congo, D.R.

86,4k

69,0k

2012 2016China

7,4k

10,5k

2012 2016Brazil

0,8k

3,1k

2012 2016United States

0,1k

0,6k

3 % Nickel10 % Graphite11 % Lithium13 % Iron14 % Copper15 % Aluminium28 % Others

3 % Manganese

Electric battery composition

Co

Global cobalt production in 2016

Low High


Megatrends beyond the obvious | Regional shiftsMegatrends beyond the obvious | Regional shiftsA

UTO

MO

TIV

E IN

ST

ITU

TE

Global macroeconomic analysis

Source: © KPMG Automotive Institute, World mining data (2016)

India as proof that thinking in isolated islands is not a sustainable success model With the upswing in China, a new demand developed. This demand has now become a dependency of car manufacturers as China accounts for a huge part of the global production. As the upswing in China gradually slows down and China’s industrial policy aims at dominating the local market in particular, the search for new markets with additional demand is intensifying again. At this point, many think of the locally supplied market of India and draw parallels to the upswing of China. However, the Indian and Chinese markets differ enormously in two respects: macroeconomic situation and industrial policies. Starting with the history of India’s origin, after which contemporary India has emerged from a multitude of independent provinces and is still divided into 29 federal states, India still has to tackle strong insular thinking. This is particularly evident in heterogeneous industrial policies, standards and norms and the still underdeveloped infrastructure (e.g. roads and electricity grid). The situation is quite different in China. There, the infrastructure is determined by uniform industrial policy.

In addition, the two regions differ in terms of their macroeconomic situation. While the middle and upper class in China is still growing and there is a continuously growing personal disposable income per capita, despite India’s growth, personal disposable income development is still far below that of China.Thus India remains a market that is still characterized by island thinking and is designed for products that appeal to a less unified market with an underdeveloped infrastructure. One opportunity for growth that still exists is supplying automotive markets with parts.

China is the e-mobility market of the future!The cobalt analysis presented here is an excerpt from our detailed raw material analysis, which shows the geograph ical and temporal development of more than 40 raw materials. Cobalt is ideally suited to illustrate the Chinese path to the e-mobility market of the future as an example of a country strategy within the regional shifts topic. The largest producer of cobalt, which is an essential component of batteries for electric cars, is Congo. Although China itself is the second largest producer in the world, China is pursuing an aggressive strategy of buying cobalt mines in Congo to reduce its dependence on other countries and make other countries even more dependent on China.

Source: © KPMG Automotive Institute; EIU Database (2018)

A U T O M O T I V E I N S T I T U T EGlobal raw material analysis

A U T O M O T I V E I N S T I T U T E



Agree Disagree

North America

South America

Western Europe

Rest of World

Eastern Europe

China

India and ASEAN

Mature Asia

77

203

72

1512

68

258

85

123

77

158

218

80

81

613

89

74

30 %

25 %

20 %

15 %

5 %

10 %

0 %

50 TWh

0 TWh

−50 TWh

2017 2020 2025 2030

6 USA

29 Germany

22 Spain

6 South Korea

4 Japan

26 Italy

5 India

23 China

29 France

29 UK

52 40

–10 –15–38

–51

8 1 0 0

1

1

0

1

0

0

0

2

1

1

Percentage share of development from 2017 to 2030

France

UK

Germany

Italy

China

Spain USA

South Korea

India Japan16 %

77 %

7

In the past OEMs could dominantly set the technological agenda for the market. Do you believe that in the future the technological agenda of OEMs will become much more driven by regulators than in the past?

7 16 %77 %

100 Mt

0 Mt

121

2ChinaUSA

Balance of trade for refined oil products (Mt) in 2017

–10 –18 –18

Germany FranceUK

BEV Share Development

Balance of trade for electricity (TWh) in 2017

OV

ERA

LL A

VER

AG

E


Megatrends beyond the obvious | Underestimated driving forcesMegatrends beyond the obvious | Underestimated driving forces

AU

TOM

OT

IVE

INS

TIT

UT

E

Energy production to BEV analysis

Source: © KPMG Automotive Institute; Enerdata; LMC Automotive

… in particular by raw material resourcesDue to the individuality of the external influencing factors from country to country, there will never be a uniform global industrial policy and thus no uniform global technological agenda with a uniform drivetrain solution. In this context, however, we see a strongly growing dependence of the technological orientation on the available indigenous raw materials in the market of the future. This assessment is also supported by our “Energy production to BEV analysis” and “Refined oil production to ICE analysis”. The “Energy production to BEV analysis” establishes a link between a country’s current electricity surplus, which is shown in the bal-ance of trade for electricity, and its future BEV share. The “Refined oil production to ICE analysis”, which you can find in detail on our interactive online platform in chapter “Underestimated driving forces”, shows the interdependence of a country’s refined oil production with the development of its ICE share up to 2030.

The analyses show that the countries with an electricity surplus, such as Germany, France and China, place great emphasis on electric mobility. In the USA, the situation is different. Also due to the high oil production volume, more than 70 % of vehicles in the USA will still have an ICE in 2030.

A U T O M O T I V E I N S T I T U T E

The richness of mineral resources of a country decides on which powertrain technology will dominate: countries with a high degree of raw materials such as oil and gas will go for combustion engines and fuel cell technology (e.g. USA) – countries with high electrical energy capacity will rather go for the electric powertrain (e.g. China).

Note: Executives (n = 981); percentages may not add up to 100 % due to rounding; figures in percent

E X E C U T I V ETechnological agenda is determined by external factors … Loosely based on the motto “surprise your customer”, for decades now the automotive industry has set the technological agenda along with its target of delivering a growing number of technological and innovative products to the market. The majority of executives agree that this freedom of design will no longer be available to OEMs in the future. For 77 % of the surveyed executives it is clear that the future technological agenda will be influenced considerably more by regulators.

Regulators make their decisions based on prevailing national automotive industrial policy, which is driven by external factors due to environmental issues, available raw materials, infrastructure or changing customer behavior.

On the question of which powertrain technology will dominate, the opinion of the surveyed executives regarding the influence of raw materials reflects how much influence the available raw materials of a country have on technological decisions – 77 % of executives agree that countries that are rich in raw materials, such as oil and gas, will strive for combustion engines and fuel cell technology (e.g. USA) whereas countries with high electric capacity will tend to target the electric powertrain (e.g. China).



Industrial policies

Fuel Cell

Hybrids

Investment area

ICEs

TCO

Infrastructure

Battery electric

Autonomous driving


KE

Y T

AK

EA

WAY

S

PRODUCT VALUE

In the past, product offerings have mainly been set by the OEM technological agenda, but in the future we see a change of perspective: raw material access and energy production sources affect industrial policies and therefore determine the OEM product portfolio. In addition, markets will have to be redefined and stronger segregated by demographic, available infrastructure and economic factors along with customer needs, to form islands of mobility.

A balanced mix of alternative drivetrain technologies and ICEs will be the product portfolio of the futureExecutives set a clearer investment strategy in drivetrain technologies this year, with strong regional differences, signaling a clear dependency between industrial policies, raw material access and OEM product portfolios. A balanced mix of alternative drivetrain technologies and ICEs will be the product portfolio of the future. Each technology will have a right to exist depending on country, region and application.

E-readiness is still far away from being hassle-free and seamlessE-mobility is on the top of the executive key trend agenda, but its roll-out is progressing rather slowly. Industrial policies, raw material access and sources of energy production are simultaneously main drivers and hurdles for e-mobility, depending on the country / region. Cost is the biggest obstacle for consumers at first sight, but we argue that the increasing TCO paradigm across the entire lifecycle will be beneficial for e-mobility. A hassle-free infrastructure set-up and lack of a seamless charging experience seem to be the true showstoppers for e-mobility. To successfully tackle these challenges, vehicle manufacturers must

enter new territories – expanding into a service-driven business by providing a positive charging experience throughout the entire customer lifecycle.

Autonomous driving will present individual service and product features in islands of autonomyAutonomous driving will be a game-changer, but when do execs and consumers expect fully autonomous vehicles on the road? One of our firm beliefs is that our focus is far too great on isolated technologies and not great enough on ecosystems. If we would concentrate on applications e.g. city and then one solution, which covers autonomous, electric, shared and infrastructure, it would be much easier to develop business cases and solutions. Let´s leave technically isolated solutions and migrate toward ecosystem solutions, which could more accurately describe environment, necessary infrastructure and technology built-in vehicle solutions. The companies who will be first to combine application thinking (city, rural, countryside) with ecosystem-driven technology set-ups (electric /connected / shared / autonomous) and infrastructure joint ventures (connectivity (5G), electricity grid and traffic infrastructure) will be the future leaders in mobility and transportation offerings.

“E-readiness is still far away from being hassle-free and seamless.”For the surveyed consumers, the most significant entry barriers into the electric world are price (35 %), followed by charging (24 %) and range (18 %).

“A balanced mix of alternative drivetrain technologies and ICEs will be the product portfolio of the future.” Executives project a similar split by 2040 for BEVs (30 %), FCEVs (23 %), ICEs (23 %) and hybrids (25 %).

“Autonomous driving will present individual service and product features in islands of autonomy.”Islands of autonomy – 71 % of execs still believe that autonomous and non-autonomous vehicles will result in severe safety issues if not separated on the road.

Future of combustion

Autonomy readiness

Electric readiness

Mobility products of the future will be paired with service offerings, to offer consumers a hassle-free and seamless customer experience in the ecosystem

Product value Product value

PRODUCT VALUE



19 %ICE

12 %BEV

9 %FCEV

North America

South America

Western Europe

Rest of World

Eastern Europe

China

Mature Asia

India and ASEAN

Hybrids ICE (Internal combustion engine) PHEV (Plugin hybrid electric vehicle) BEV (Battery electric vehicle) FCEV (Fuel cell electric vehicle) EREV (Extended range electric vehicle) ICE PHEV BEV FCEV

18 %PHEV

14

22

14

26

19

13

8

11

10

9

8

22

14

35

10

9

10

9

35 %Hybrids

7 %EREV

34

36

31

12

8

8

4

35

33

23

69

25

13

15

4

6

1

7

40

12

6

36

16

23

1029

25

17

10

2020

98.53 M*

21

4021

18

2030

120.54 M*

24

31

26

19

2040

134.27 M*25

23

30

23

2020 2030 2040

North America

32

24

20

23

29

26

21

24

24

29

26

21

2020 2030 2040

Western Europe

49

16

15

20

35

24

17

24

23

31

23

23

2020 2030 2040

China

35

24

19

23

26

30

19

24

20

35

25

19

OV

ERA

LL A

VER

AG

E

G L O B A L C A R P R O D U C T I O N V O L U M E *


Note: Consumer (n = 2,028); percentages may not add up to 100 % due to rounding; figures in percent

Which powertrain technology would you choose if you were to buy a car over the next 5 years?

Product value | Future of combustionProduct value | Future of combustion

Note: Executives (n = 981); percentages may not add up to 100 % due to rounding; figures in percent; shares for 2020 are basedon global production forecast for 2020; 2040 volumes are estimated on CAGR 2028-2033; *LMC Automotive

What is your opinion on the share between ICE, PHEV, BEV and FCEV in 2020, 2030 and 2040? Consumers still prefer hybrids and ICEs

over fully electric vehiclesInterestingly, consumers have a clear favorite drivetrain technology for their next car: hybrids. This distinctly shows that most consumers have significant doubts about the market maturity of complete new alternative technologies such as BEVs and FCEVs, a point which is further strengthened by the fact that ICEs even remain second choice for consumers. Looking at consumer choices more closely, we discover a clear preference pattern based on living circumstances. Consumers from more rural areas clearly prefer ICEs over all other technologies. Of course, every new powertrain will only be successful if the corresponding supply chain does not generate any burden for customers and this depends, to a large extent, on the area of application.

Multiple drivetrain technologies will co-exist alongside each otherIt’s completely understandable that we will have a mix of different drivetrain technologies. FCEVs, BEVs, hybrids and ICEs will co-exist and complement each other, varying in their respective areas of application, car size, also factoring in industrial policies and dependency on raw materials. As described in the chapter “Underestimated driving forces”, we believe that behind any development of powertrain strategies, there is a regulator view on raw material access. Therefore, the request for new powertrain solutions is coming less from the consumer and is more a matter of industrial policy by country and region, which is driving the product offering.

E X E C U T I V EC O N S U M E R



87 % 70 % 67 %

90 %

85 %

80 %

75 %

70 %

65 %

60 %

2017 (n = 953)

2018 (n = 907)

2019 (n = 981)

Price / Cost Charging Range Uncertainty about future tech developments Suitability for daily use Image

35

24

12

18

111

North America

South America

Western Europe

Rest of World

Eastern Europe

China

India and ASEAN

Mature Asia

Hybrids ICE PHEV BEV FCEV EREV

73

67

65

68

71

69

67

72

41

13

24

10

121

40

18

136

20

2

43

14

18

15

10

42

723

8

201

42

10

28

13

7

10

54

18

126

31

732

14

151

31

16

33

8

94

60

+1−2

+1

+6

−4

BEV will fail due to the challenges related to setting up the required infrastructure.

1255 % 33 %

OV

ERA

LL A

VER

AG

E

86

88

90

87

AVER

AG

E


Product value | Future of combustion Product value | Electric readiness

Investment strategies focus on hybrids, followed by BEVsProduct driven drivetrain technologies continue to dominate the executive key trends this year – placing BEVs, FCEVs and hybrids on positions 2–4 on their agenda, while downsizing ICEs is found almost on the bottom of the key trends ranking. However, in previous years our surveyed execs have voiced strong support for the hypothesis that ICEs will continue to be more important than electric drivetrains for a very long time. This year, we therefore again asked executives about their investment strategy in different drivetrain technologies.

Execs have a clearer investment focus with strong regional differencesThe results show that the investment willingness of executives in drivetrain technologies is decreasing on average from 87 % in 2017 to 70 % in 2018 and 67 % in 2019. What is more obvious, is that execs seem to have a more focused investment strategy in contrast to previous years.

Hybrids (71 %) and BEVs (71 %) are the clear investment focus of global execs. Surprisingly, FCEVs (60 %) and ICEs (65 %) have the least investment priority on a global level, regionally the results are significantly different: Hybrids, e.g. are remaining the number one investment focus of execs from North America, South America and India & ASEAN, while Chinese and Western European execs clearly focus on BEVs. We have found a clear pattern between the results and previously analyzed industrial policies, which affirm our hypothesis that the technology agenda of OEMs is increasingly set by a country’s industrial policy and regulators.

Challenges for battery electric vehiclesBattery electric vehicles (BEV) are slowly but steadily gaining importance in the product portfolio of OEMs. As analyzed in the “Future of combustion” section, executives believe that BEVs will account for the largest share (30 %) of vehicles on the road by 2040. Looking at today’s share of electric vehicles on the road, this seems challenging and ambitious for many reasons as BEVs still have to overcome existing obstacles. The main reasons for consumers to stay away from an electric car are price (35 %), charging experience (24 %) and range concerns (18 %). Consumers still seem to focus primarily on the purchasing price of a car, but neglect the TCO advantages e-mobility offers due to the currently cheaper variable cost (which could also increase by higher demand in the future).

Executives continue to clearly consider the unsolved infrastructure problem as the main obstacle for the success of BEVsThe majority of execs believe that BEVs will fail due to challenges related to setting up the required infrastructure. These doubts are especially strong among energy service providers, as they are most likely aware that a sufficient infrastructure goes beyond implementing more charge points and must include improvement of the necessary backbone to avoid power grid overloads or shortages of general power supply.

Note: Consumer (n = 2,028); percentages may not add up to 100 % due to rounding; figures and deviations from the previous year 2018 (n = 2,154) in percent

C O N S U M E R The one thing that really keeps me away from considering a fully electric car is …

Please rate the degree to which your company plans to invest in the following powertrain technologies over the next 5 years or which technology you believe to be the one receiving the highest investments?

E X E C U T I V E




16 %

71 %

12

North America

South America

Western Europe

Rest of World

Eastern Europe

China

India and ASEAN

Mature Asia

64

1719

64

2115

85

96

69

1714

84

98

57

1231

7 %

84 %

9

North America

South America

Western Europe

Rest of World

Eastern Europe

China

India and ASEAN

Mature Asia

80

137

86

68

80

1110

89

74

94

15

3

93

5

81

119

79

157

Agree Disagree

81

613 78

157

Agree Disagree

By when do you expect fully self-driving cars to be operational on the road in mature markets?

2020 2025 2030 2040 2050

73 %9

27

37

18

8

–1

+1

−3

OV

ERA

LL A

VER

AG

E

OV

ERA

LL A

VER

AG

E


Autonomy roll-outThe majority of global automotive executives (73 %) believe in an operational roll-out in mature markets by 2030 the latest.

In our opinion this is a very ambitious, probably exces-sively ambitious goal, because full autonomous driving will have to overcome significant obstacles and challenges such as infrastructure set-up, zero-error tolerance technology, regulatory boundaries, understanding mobility patterns and consumer mind shift.

Mixed traffic as riskSeparation instead of integration in selected islands of autonomy – human drivers and autonomous vehicles don’t mix. 71 % of execs still believe that autonomous and non-autonomous vehicles will result in severe safety issues if not separated on the road. They prefer to see autonomous vehicles driving in separate zones and avoiding mixed traffic situations, to ensure road safety. Why don’t we think about separate lanes for autonomous and electric vehicles, building in necessary infrastructure for seamless charging and at the same time setting clear rules for behavior? By following fleet operation concepts, which are driven by TCO principles, urban applications could simultaneously incorporate changes to vehicle own er -ship, a combination of transport of people and goods.

Product value | Autonomy readinessProduct value | Autonomy readiness

Mixed traffic between autonomous and non-autonomous vehicles will lead to severe safety issues and liability claims.


Autonomy is a question of application – not entire countries will have autonomous vehicles but rather will we see certain islands of autonomy by city, region, etc. Islands of autonomy

Geographical markets have traditionally been set by countries and most OEMs today still cluster their markets in the same “old-fashioned” way. As described in other chapters, product and service differentiation will have to be more closely aligned to customer needs in order for companies to be competitive in the future. This implies that markets which have existed for decades will no longer be recognizable.

This has especially high relevance for autonomous driving. 84 % of executives and 73 % of consumers agree with the hypothesis that autonomy is a question of application, which means that autonomous driving will not be rolled out in entire countries, but rather there will be individual and spatially limited solutions.

In KPMG’s 2018 survey “Islands of autonomy”, we already assessed that the markets of the future will be clustered in cities, but not exclusively. These clusters will be located in regions / metropolitan areas across the globe that fit certain demographic, infrastructural and economic factors.

Each of these markets will require its own set of products and services, which OEMs and other mobility stakeholders must be able to provide in order to be competitive in each market. As argued throughout this study, this implication is not solely driven by the development of autonomous technology. Within the full roll-out of autonomous driving, other product- (electric mobility) and service-driven (mobility on demand) features will be incorporated within one hassle-free and seamless mobility ecosystem.





Purchasing efforts

on demand

Individualized in Mgmt.

Seamless & hassle-free

Retail transformation

Customer relationship

KE

Y T

AK

EA

WAY

S


Customer valueCustomer value

CUSTOMER VALUE

Customer value puts the spotlight on the customer, meaning that understanding who the customer is must be a priority, whereby the emphasis will now be increasingly placed on differentiating between different customer archetypes. These different customer archetypes all have individual needs, preferences and requests at individual touchpoints based on their environment. This makes it necessary to manage numerous customer journeys in parallel, each requiring customized and highly individual attention.

From re-tail to me-tail: understanding the 5 “My ...” that shape customer purchasing decisions in times of fundamental transformationThe retail landscape is in the middle of a fundamental transformation phase: almost half of all execs are highly confident that the number of physical retail outlets, as we know them today, will experience a reduction of 30–50 % already by 2025. This being the case, the question is less about the decrease in the number of retail outlets, but rather about how to reinvent, reimagine and eventually rebuild and reorganize existing structures and how to identify new revenue streams for retailers. Retail outlets shall evolve into service factories, used car hubs or emotional customer touchpoints that reflect brand values and their attributes – certainly not an easy task, but if these service centers do not reflect what shapes and defines a customer purchasing decision around the 5 “My ...”, it will be nearly impossible to accompany the customer over the entire lifecycle.

Customer centricity as the first step towards understanding the mobility ecosystemOver the past three years, there has been continuous growth in the number of executives who believe that OEMs will own the direct customer relationship in the future. The opinion of the execs is also confirmed by

the more than 2,000 consumers surveyed this year, who year for year are increasingly taking the side of the OEMs. In summary, this year 49 % of executives and 42 % of consumers agree that OEMs will win the race for customer relationship by 2025.

Mobility and function on demand: as enabler of new customer experiences and production systems?Mobility on demand is supported by the trend towards better use of resources. In combination with function on demand, it holds a high potential for change and could lead to a totally changed customer relationship. Executives have a very clear opinion about the success factors for a sharing economy in the mobility sector: consistent with the previous year, a trustful brand was rated at the top, with 41%. In addition, executives and consumers agree that the greatest potential for function on demand features lies in navigation systems (27 %), adaptive cruise control (22 %) and power upgrade (16 %), which make it possible to bring individualization into the vehicle during the utilization phase and not, as is already the case today, during production phase.

“Are OEMs winners of the customer relationship battle?”49 % of executives and 42 % of consumers believe OEMs to be the big winners in the battle for the direct customer relationship.

“Mobility and function on demand: as enabler of new customer experiences and production systems?”Execs and consumers agree that the greatest potential for function-on-demand features lies in navigation systems (27 %), adaptive cruise control (22 %) and power upgrade (16 %).

Customer centricity

Mobility on demand

Reinventing, reimagining and eventually rebuilding and reorganizing existing retail structures can only succeed at the core of the customer

“The retail landscape is in the middle of a fundamental transformation phase.”Almost half of all surveyed executives (48 %) are highly confident that the number of physical retail outlets, as we know them today, will be reduced by 30–50 %.

Retail of the future

CUSTOMER VALUE



O V E R A L L A V E R A G E

0 % −10 % −20 % −40 %−30 % −50 %

8

14

30 30

10 8

South America

45 % 55 %

Western Europe

49 % 51 %

Rest of World

43 %57 % 59 %

41 %

India and ASEAN

China

55 % 45 %Mature

Asia

69 %

31 %

48 %52 %

Eastern Europe

48 % 52 %

North America

50 % 50 %

8 %

82 %

10

North America

South America

Western Europe

Rest of World

Eastern Europe

China

India and ASEAN

Mature Asia

75

187

85

96 78

913

78

516

79

14

75

1114

91

36

93

43

8

–1

–2

+3

OV

ERA

LL A

VER

AG

E

Agree Disagree


Retail landscape undergoing dramatic transformation – executives show the need for reinventionThe executives in this year’s survey have a clear opinion: almost half (48 %) of all surveyed executives are highly confident that the number of physical retail outlets as we know them today will be reduced by 30–50% already by 2025. Compared with last year´s results, however, it is also clear that the change will not take place as quickly as may be expected. Nevertheless, the question is less about the decrease in the number of physical retail outlets but rather about how to reinvent, reimagine and eventually rebuild and reorganize existing structures.

Keeping pace with what essentially drives the customer is inevitable for all retail activitiesWhen talking about the future of retail organizations we must consider what shapes and defines today’s and tomorrow’s customer purchasing and experience requirements across 5 key dimensions:

1. My motivation: characteristics that drive consumer behavior and expectations

2. My attention: the way consumers direct their attention and focus; attention is a rational brain process

3. My connection: understanding how consumers want to connect to devices, information and each other

4. My watch: how consumers balance the constraints of time in our lives and how this changes across lifecycles and life events

5. My wallet: how consumers adjust the share of our wallet across events

If a retail organization is merely driven by old schemes and productdriven profit center thinking and ignores putting the customer at the center of attention, there will be no chance to hold a place in the world of the 5 “My ...” and the retail landscape will be outdated over time.

Role of physical retail outlets must undergo transformation into service factories, used car hubs or focus on an ID-management approachAccording to execs, this year the absolute majority (82 %) strongly agrees, and thereby even exceeds last year’s opinion, that the only viable option for physical retail outlets will be the transformation into service factories, used car hubs or focusing on an ID-management approach, where the customer is recognized at every single touchpoint.

In order to better grasp what a customer- and service-oriented retail landscape could look like, we would like to outline how a professional store for mobile devices is set up: there will be product presentations with buttons to press if help is needed, a separate desk where people with dedicated skills will explain product service contracts like financing, insurance, mobility or connectivity and solve problems. This will all be installed in a lightfilled and open atmosphere, designed to create a unique and emotional customer experience. You will not find shop floor levels with service stations in front of the customer.

So the question is, why isn’t such a structure in place at customer touchpoints? Why is there no differentiation according to the concrete customer need (e.g. buy a car, get inspiration, feel the brand emotion, get a repair)? Why not have software-driven checkpoints, where only the operating system is the focus, plus a lot of different customer touchpoints, where the asset can be physically and virtually presented and staff could explain functionality? Finally, there could also be desks manned with people who solve individual problems and take time to be present for individual solutions.

The only viable option for physical retail outlets will be the transformation into becoming service factories or used car hubs. New car sales will be processed via other more digital channels.

The number of physical retail outlets as we know them today will be dramatically reduced by 2025 ...


Customer value | Retail of the futureCustomer value | Retail of the future





2017 (n = 953)

2017 (n = 2,418)

2018 (n = 907)

2018 (n = 2,154)

2019 (n = 981)

2019 (n = 2,028)

E X E C U T I V E C O N S U M E R

Data privacy & security 5657

Transparency over total cost of ownership / usage 5450

Self-driving cars / active driver assistance systems 2748

Vehicle dependent connectivity features (e.g. maintenance reminder,

tire pressure warnings)3646

Driving pleasure & speed 4144

Zero emission / electric mobility 3943

Brand & image 2539

Vehicle independent connectivity features (e.g. shop / restaurant

finder, office applications)1935

Which function on demand features would you be most willing to pay for?

Navigation System

Adaptive Cruise Control

Power Upgrade (increased

engine power)

32

19 18

42

11

13

18

16

26

14

13

19

28

41

22

11

16

9

37

9

20

15

19

44

25

12

7

12

49

17

11

13

11



Are OEMs winners of the customer relationship battle?According to this year’s results, the victor in the battle for customer relationship has not yet been finally determined, but OEMs have made giant leaps forward in owning the direct customer relationship. Over the past three years, there has been continuous growth in the number of executives who believe that OEMs will own the direct customer relationship in the future. The opinion of the execs is also confirmed by the more than 2,000 consumers surveyed this year, who year for year, are increasingly taking the side of the OEMs. In summary, this year 49 % of executives and 42 % of consumers agree that OEMs will win the race for customer relationship by 2025.

The other winners this year are ICT companies, since both executives and consumers assess the opportunities for ICT companies as better than in the previous year. It is also interesting to take a more detailed look at the regional differences in the results. The dominance of OEMs is particularly strong in India & ASEAN (63 %) and North America (57 %). By contrast, the belief in ICT companies in North America (7 %) is below the global average (13 %). This is astonishing, especially because most of the successful ICT giants are headquartered in the USA, where the proportion of executives who believe in an ICT company victory for the customer relationship is even lower at 6 %.

Data privacy & cyber security are the most important purchasing criteriaWhether purchasing a vehicle or using a mobility service over the next 5 years, nearly 60 % of executives abso-lutely agree that companies that do not focus on data & cyber security are at extremely high risk of sacrificing their brand reputation and not providing real value in their data usage. In this context, it will be even more impor-tant to create a secure digital environment with seamless connectivity and extra features that build maximum customer trust. This is also emphasized by this year’s survey results, as 56 % of consumers make data & cyber security an absolute prerequisite for their purchasing decision, followed by TCO to which more than half of all consumers are in agreement.

Seamless connectivity is still outstandingExecs and consumers agree that the greatest potential for function on demand features continuously lies in navigation systems, adaptive cruise control and power upgrades. In KPMG’s opinion, consumer willingness to pay for the navigation system shows that seamless connectivity between the car and the mobile phone, which consumers use to bring their individualization into the vehicle, is still outstanding.

Customer value | Mobility on demandCustomer value | Customer centricity

Considering the business model and consumer behavior changes, who do you think will own / take over the customer relationship until 2025?

How important do you think the following features will be to the customer when deciding to purchase a car / use a mobility service?

Note: Executives (n = 981); Consumer (n = 2,028); figures in percentNote: Executives (n = 981); Consumer (n = 2,028); percentages may not add up to 100 % due to rounding; figures in percent

OEMs / vehicle manufacturers System suppliers ICT companies Mobility solutions providers Retailers / car dealers



Data ownership & trust

Investment paths

Growth strategy

Safe environment

Cooperations & start-ups

Co-ompetition

Market cap

Profitability


KE

Y T

AK

EA

WAY

S

The goal is not to do everything at once, but rather to wisely define who you want to be and choose when to compete or cooperate with other ecosystem players. The industry is thereby differentiated by 3 types of players: (1) hardware-oriented players who are flexible, costefficient and function simply, (2) those who aim to create a product, which does act as seamlessly as possible by combining hardware and software (not only focusing on vehicles) and eventually (3) those creating a comprehensive product that can be seamlessly integrated into a customer’s daily life.

Complete mindset change: cooperation of auto companies and ICT players becomes more realistic than ever for executivesWith tough market conditions and increasing dominance of tech giants, as well as the complexity that new products and especially ever-faster evolving customer-oriented services have brought to the automotive industry, it is no longer possible for traditional auto players to act alone and still cover the entire value chain – cooperation with wisely selected players from the auto industry as well as from converging industries is the secret map to treasure island.

A data business model is only as good as the benefit it creates and depends on who benefits – company or customerOEMs turn out to be the big winners: in the race for upstream-oriented vehicle data, auto manufacturers have stood their ground – consumer data (downstream data) is finally lost to more agile nonasset based digital players. Auto manufacturers must learn to create real value for both their companies and consumers for

different hierarchies of data – always remembering the fact that safety-oriented services around data & cyber security will always be at the core for executives and consumers alike.

Zeroing in on silent revolutions to be ready for revolutionary changeA change in business model, as the automotive industry is currently experiencing, is a process that is slow and silent, at times even creeping, when suddenly a gamechanger crops up: a scarcity of raw material, changing industrial policies or lack in infrastructure may lead to an even more fundamental revolution – one which some believe they can already see developing today. The future is just around the corner: outdated market share calculations, decreasing profitability of traditional auto manufacturers and the rise of financial service companies to overcome increasing debt levels or even the cultural axis the world will be split into – explore our thoughts and prepare yourself for tomorrow.

ECOSYSTEM VALUE“Gravity further shifts towards the ICT companies.”In 2018, market capitalization of the top 15 mobile tech and web digital companies is almost 5 times as high as that of top 50 traditional auto companies (OEMs & suppliers).

Co-ompetition

“Importance of financial service entities on the rise in times of increasing debt levels.”81 % of surveyed execs show confidence that financial service entities will gain importance as debt levels rise due to mobility service offers & fleet management instead of mere unit sales

Revolutions always start silently

Unlocking ecosystem value by defining your company’s role and readiness to react to silent revolutions

Ecosystem value Ecosystem value

ECOSYSTEM VALUE

“Auto OEMs are considered most trustworthy as guardians of product-centric vehicle data.”Every third executive states that product-centric upstream data belongs to the OEM – consumers still hope to own it themselves.

Data supremacy



20102010 20182018

Microsoft Corporation $ 36,6 bn

Microsoft Corporation

$ 133,7 bn

Web / Digital $ 3.704,5 bn

Suppliers $ 359,3 bn

Mobile / Tech $ 1.721,2 bn

56 %

5 % 7 %13 %

26 %

Panasonic Corporation

$ 29,5 bn Panasonic Corporation

$ 12,9 bn

Robert Bosch GmbH $ 52,7 bn

Panasonic Corporation $ 12,2 bn

Cisco Systems, Inc. $ 39,9 bn

Apple Inc. $ 847,4 bn

Apple Inc. $ 290,2 bn Samsung

Electronics Co., Ltd. $ 77,8 bn

Toyota Group $ 123,3 bn Toyota Group

$ 43,3 bnToyota Group

$ 171,9 bn

Toyota Group $ 46,0 bn

Mobile / Tech $ 684,1 bn

Suppliers $ 240,0 bn

Web / Digital $ 560,5 bn

OEMs $ 720,7 bn

OEMs $ 842,0 bn

25 %

33 %

31 %

11 % 48 %

16 %

13 %

23 % 23 %

33 %

36 %


Suppliers $ 72,4 bn


OEMs $ 265,0 bn

Suppliers $ 79,3 bn



OEMs $ 352,3 bn

Microsoft Corporation

$ 851,2 bnMicrosoft Corporation $ 222,8 bn

OEMs Suppliers Web / Digital Mobile / Tech20112010 2012 2013 2014 2015 2016 2017 2018

Market capitalization of the top 15 mobile tech & web digital companies is almost 5 times as high as that of the top 50 traditional auto companies (2018)

3,52,92,62,21,61,81,61,3 4,5


Market capitalization of the top 15 mobile tech & web digital companies is almost 5 times as high as that of the top 50 traditional auto companiesIn recent years, most of the automotive industry has gotten used to good levels of profitability, but if we compare market capitalization and cash levels to tech companies, the automotive industry has lost considerable ground. If we compare developments on market capitalization and cash position especially over the last 9 years, tech companies, mobile tech companies and web companies have beaten the automotive industry by far.

Although people believe that the automotive industry is strong enough to compete with tech and mobile giants, the industry should be prepared that profitability in the automotive industry will most likely decrease in upcoming years. Traditional auto players will not only be confronted with huge investments in new technologies, but even more with tough market conditions and shrinking markets around the world – not to mention the economic crisis, which will eventually come. Our firm yearlong approach has therefore been compiled under the headline of

“co-ompetition”, our description of competing and working together at the same time.

In the first year in which we described that vision, hardly anyone in the automotive industry believed in it. In the meantime, however, each year we see cooperation between companies consistently increasing on technologies, ecosystems and infrastructures to optimize huge investment requirements while still simultaneously competing in the market to win customers.

Before deciding with whom to compete and where to cooperate, defining your company’s role in the future ecosystem is essentialThe motto is: decide on who you want to be and who will be your partner. The whole industry (OEMs and suppliers), can thereby be divided into three categories:

1. Hardware-oriented asset-based players: as flexible, cost efficient and functional as possible without any technical failures These players will be highly asset-based, providing a sexy functional product, focusing on flexible global platforms and components – including concentration on powertrain, chassis, interior and exterior and supplying the rest of the industry as contract manufacturers.

2. Hardware & software-oriented asset-based players enriched with software features and functionalities: as seamless as possible These players will be supplied by the first group and will focus on providing a seamless customer experience and the human machine connection by focusing on performance levels, e.g. performance of operating systems and ability to best connect to infrastructures and applications.

3. Software-oriented players providing a release-free daily integration: as easy as possible These players will build the connection to a customer’s complete living environment by servicing the customer from multiple uncontrolled apps to an intelligent small number of app groups driven by mobility, living, health, entertainment, off-time, work, sports, administration and anything applicable to the life of a customer.

Ecosystem value | Co-ompetitionEcosystem value | Co-ompetition

Total market capitalization in the ecosystem Total cash positions in the ecosystem

Note: Percentages are share of total market capitalization and may not add up to 100 % due to rounding; the proportions of the companies are only comparable within the sectors and years

Note: Percentages are share of total cash and short-term investments and may not add up to 100 % due to rounding; the proportions of the companies are only comparable within the sectors and years




#1

#2

#3

#4

#5

#6

Compete Cooperate

65 %Cooperate

35 %Compete

2017 2018 2019

49 %

55 % 51 %

45 %

2017 2018 2019

North America

2017 2018 2019

Western Europe

2017 2018 2019

China

35 % 41 %41 % 49 %41 % 47 %44 %

65 % 59 %59 % 51 % 59 % 53 %

71 %84 %

29 %16 %

56 %

O V E R A L L A V E R A G E

#2

#3#3

#6

039 Organic growth

−232

Mergers & acquisitions (inner-sector)

2015 (n = 200)

2016 (n = 800)

2017 (n = 953)

2018 (n = 907)

2019 (n = 981)

+234

Outsourcing of (non-)core activities to suppliers / contract manufacturers

+334

Mergers & acquisitions (cross-sector)

Percentage of executives considering strategy as extremely important in 2019

+856

Cooperation with players from converging industries

043

Corporate partnerships like joint ventures and strategic alliances

#4

#3#3#3

#1 #1

#2 #2

#5#5

#4

#6

#5

#2

#4#4

#6

#5 #5

#6 #6

#4

#1

#3

#2

#1 #1


Ecosystem value | Co-ompetitionEcosystem value | Co-ompetition

Complete mindset change: for executives, cooperation of auto companies and ICT players becomes more realistic than everHaving asked executives over the past 3 years whether they believe it is better for auto manufacturers and ICT companies to cooperate or compete, the answer has never been as crystal clear as this year. Although last year just over half (51 %) of execs agreed on a cooperative rather than competitive approach, this year the approval rate boosted tremendously: 2 out of 3 executives (65 %) are thoroughly convinced by a cooperation strategy, although there are significant differences by region, which again indicates that there is no global answer.

Chinese executives find themselves on the one end and executives from North America on the other. Executives in China have already recognized in 2017 that it is better for these players to cooperate than compete and have even further strengthened their opinion with 84 % of executives following this approach today. This enabled Chinese companies to make a leap ahead and according to the latest news, companies in China have already made this a reality: the cooperation of various traditional auto manufacturers with big Chinese tech giants is only one example. In comparison, North American executives have always followed a rather competitive approach, which may also be due to their mentality and protectionist attitude. In this year, however, for the first time they have detected the opportunities that lie behind cooperation in the industry.

Note: Executives (n = 981); figures in percent Note: Executives (n = 981); figures and deviations from the previous year 2018 (n = 907) in percent

Do you expect ICT companies and automotive manufacturers to compete or cooperate in the future?

Please rate the importance of the following strategies for the future success of your company. Cooperation with players from converging

industries remains number one strategy for successCooperation with players from converging industries remains top priority on the executive agenda for the third consecutive year – almost 60 % of executives believe this to be extremely important and therefore it outpaces the rather traditional approach of organic growth. Over 70 % of all executives working for vehicle manufacturers agree with this, further emphasizing the increased awareness to innovate or grow by looking beyond typical approaches, which have been followed in past decades.

Ranked second, corporate partnerships and strategic alliances with incumbent industry peers are still seen as extremely important by 43 %, which underlines the approach of co-ompetition.

Auto companies seem to have realized that teaming up with industry peers, in particular to keep pace with non-asset based digital challengers instead of managing upcoming challenges alone, will be integral to future success strategies.




20 %Manufacturing

10 %Electrification & Energy

10 %Connectivity

9 %Retail & Aftermarket

21 %Other

9 %Shared Mobility

7 %Autonomous

6 %Urban Mobility

6 %Financal Services

4 %

Logistics, Drones

& A

viation

BMW

TESLA

FCA

MAZDA

DAIMLER

GM

SAIC

HYUNDAI

HONDA

SUZUKI

TATA

FORD

GEELY

VOLVO

PSA

CHANGAN

RENAULT NISSAN

TOYOTA

PORSCHE

VW

AUDI


Ecosystem value | Co-ompetitionEcosystem value | Co-ompetitionA

UTO

MO

TIV

E IN

ST

ITU

TE

OEM investment network analysisA U T O M O T I V E I N S T I T U T E

Source: © KPMG Automotive Institute; Pitchbook; percentages may not add up to 100 % due to rounding; figures in percent

Investment paths provide a good indication of potential upcoming co-ompetition scenarios and the strength players already currently have in the ecosystemDiscussing these main investment areas for different types of players, it is interesting to analyze investment paths into start-ups worldwide. It is hereby already possible to detect main investment interests and patterns over years. This provides a clear and more comprehensive picture of why tech, mobile and social media companies have not invested heavily into asset-based business in the past years, since they believe in the business case from non-asset business in the long term. While the main investment areas of Alibaba focus on software, retail, entertainment and connectivity, Amazon also puts the greatest interest in these areas.

In comparison, the investment path of traditional automotive companies shows that the focus is placed in older and traditional topics (manufacturing or energy) and comes from their heritage – investments into connectivity, shared mobility or urban mobility are something that has come up only recently and which has been followed up on by at least some of the premium OEMs.

The analysis of investment paths provides an opportunity to better understand dynamics and interweavings of entire networks, as outlined in the network analysis. This picture clearly shows which companies are already interconnected with each other and which companies prefer to focus on an isolated approach.

Although it is evident that many of these dynamics have increased only in recent years and a great deal of additional investments will most likely follow, one thing remains clear – the investment strategy of a company has to be in line with the type of player a traditional auto company wants to be in the future.

There will be many co-ompetition scenarios within these groups that the industry is not yet prepared for. The rule will not be who dominates, the rule will be agility and co-working spaces to be able to join forces and secure desired ecosystem positions.

One of the biggest challenges will be to work out concrete co-ompetition models, how to organize different cultures across different regions, to bring best capabilities and capacities together despite existing organizational structures. These so-called agile working structures, where organizational power is not linked to the number of responsible people but rather to the joint results a team creates, become more essential than ever.



North America

South America

Western Europe

Rest of World

Eastern Europe

China

India and ASEAN

Mature Asia

40

32

20

7

47

10

38

5

37

198

37

40

21

10

28

29

33

10

28

39

116

44

39

30

28

3

44

13

41

2 47

248

22

−3

−1

–2

+6

OV

ERA

LL A

VER

AG

E

Safety-oriented – e. g.: guarantee better anti-theft capabilities, car-2-x communication

Performance-oriented – guarantee better performance of the car (e. g. emissions, maintenance)

Customer-oriented – community profiling and better touchpoint management

Ecosystem-oriented – resale of generated data to third parties (e. g. information about insurance, weather, groceries)

97

50 %

40 %

30 %

20 %

10 %

0 %2017

(n = 953)2016

(n = 800)2018

(n = 907)2019

(n = 981)

OEMs / vehicle manufacturers

Owner / driver of the car ICT companies

Suppliers Mobility solutions providers

Retailers / car dealers Government


48

18

33

29

15

10

2

41

14

8

19

32

28

13

10

40

12

8 7

21

36

29

14

68

47

11

21

2017 (n = 2,418)

2016 (n = 2,123)

2018 (n = 2,154)

2019 (n = 2,028)

2

86 7

30

57

4

29

65

12

6

35 5 5

66


Ecosystem value | Data supremacyEcosystem value | Data supremacy

Auto OEMs are considered most trustworthy as guardians of product-centric vehicle dataIn recent years the results regarding data ownership were never as clear as this year: more than one third of executives are convinced that vehicle data belongs solely to the OEM, which obviously puts the OEM in a pole position and opens the door to further opportunities that are waiting to be identified. Consumers as well, of which the majority (47 %) still believe they should be the sole owner of data, rank OEMs in second place and turn their back on ICT companies.

Things are different in China: in comparison to tradi-tional auto manufacturers, ICT companies turn out to be the winners of the data raceBig ICT players obviously dominate China, especially from an economic and cash position perspective, and according to the results have also been able to improve their positioning and footprint regarding data ownership: although the majority of executives still believes that vehicle data belongs to OEMs, already almost 1 out of 4 execs are convinced that ICT companies will turn out to be the winners of the race, which has steadily increased over the past years. ICT companies currently already implement enhanced customer profiling and have better transparency of who their customers are – also due to their investments, for instance Alibaba into software, retail, entertainment or connecitivity start-ups.

Golden rule for a B2C environment is safety first, then performanceExecutives express a clear opinion that car companies can best monetize product-centric upstream data with services that are oriented on safety (40 %) and performance (32 %), but execs also believe that customer profiling (20 %) is important. Customers will not buy-in by sharing and giving away their data if they don’t get anything in return, while particularly safety-oriented services, such as anti-theft capabilities or cyber security, are essential to every customer. Customers want to feel that they are in a safe environment, an environment in which data safety is at the core of system operations: no customer wants to have to worry about cyber security or data hacks and always wants to rest assured that everything in the ecosystem is being taken care of.

Significant regional differences in monetizing data outline the need for locally tailored approachesResults indicate that for data-driven business models, specifically regional differences make a global approach not advanced enough. The market demands a completely locally tailored approach, in order to comply with local regulatory standards and customer preferences. This is especially true for executives from China, whose views seem to be far more advanced: according to 30 % of the execs, the second area most likely to monetize data is customer profiling and better touchpoint management – something especially Chinese consumers are likely to appreciate or even already request today.

Note: Executives (n = 981); Consumer (n = 2,028); percentages may not add up to 100 % due to rounding; figures in percent

Connected cars generate an enormous amount of consumer & vehicle data. Who do you think should be the “owner / guardian” of the vehicle data in 2025? What is the most likely area where car companies can monetize data?

E X E C U T I V E




Agree Disagree

OEMs Suppliers ICT companies

Mobility service

providers

Dealers Financial services

Energy / Infrastructure

providers

Government authorities

81 %+27

OV

ERA

LL A

VER

AG

E

85

78 7876

79

89

7882

19 %-12

15

22 22 2124

11

2218

12

36

51

OEMs

7

39

54

OEMs

15

43

41

Suppliers

9

41

50

Suppliers

EMER

GIN

G M

AR

KET

S

MAT

UR

E M

AR

KET

S


Ecosystem value | Revolutions always start silentlyEcosystem value | Revolutions always start silently

Profitability of traditional automotive companies is about to decreaseExecutives display very little fear in regard to the imminent decrease in auto company profitability – most concerns are addressed towards suppliers being affected first. KPMG believes, however, that profitability in the automotive industry is most likely to decrease in upcoming years: OEMs will be confronted with tough market conditions and shrinking global markets, not to mention an economic crisis which will come eventually – and all this against a background of fundamental changes and challenges involved in achieving sustainable profitability.

In the past, it was fairly easy for traditional OEMs to define a price for a product featuring certain special equipment that followed a zero-based budgeting approach. Function on demand features and the increasing share of software in the special equipment make this calculation even more complex and difficult to predict. Will consumers really be willing to pay for the navigation system in future if they have the ability to navigate via their mobile phone and will we still need special equipment at all in a primarily fleetoperated world?

Aside from the increasing complexity in the product itself, supply chains and production networks are most likely to become ever more complex. Diversity in the responsibility for different building blocks is increasing, which when summed up puts tremendous pressure on auto manufacturers: under these changing conditions, will they still be able to really maintain profitability that the market and its players have come to expect over the years?

Importance of financial service entities on the rise in times of increasing debt levelsAnother insidious development from a financial service perspective, is that with the shift from traditional unit sales towards mobilityasaservice offerings and fleet management of OEMs, it is becoming increasingly difficult to delete the assets / cars from a company’s balance sheet, which consequently leads to an increase in debt levels. Cash flow of the operating business, with possibly decreasing unit sales in the future, does not ensure the financing of all vehicles and is the reason for financial service entities gaining importance, a trend that an astonishing 81 % of the surveyed executives currently agree with.

For financial service entities to actually be nonasset based would entail specifying their business model as asset-driven – thus becoming the platform provider and thereby financing the asset. Whereas in the past, when technologies were pumped into the market financial service entities only had to engage in simple risk management, they now suddenly have to transform themselves into ecosystem managers. This requires having enough capital available while it also calls for comprehensive risk management, understanding refinancing in specific markets and a respective assetliability match, the ability to assess the influence of the regulator and industrial policy.

In simple terms they need to transform from being a financial service entity used to applying financing to an asset and being steered by supply and demand, to developing new competencies that require the financing of a much more ecosystemoriented management.


A shift from traditional unit sales towards mobility service offerings and fleet management of OEMs may lead to an increase of the balance sheets debt levels. Do you believe that consequently the importance of financial service entities will increase?

E X E C U T I V EE X E C U T I V E Do you think profitability of traditional auto companies will decrease, increase or remain stable in the upcoming years?


Profitability will increase Profitability will remain stable Profitability will decrease

OV

ERA

LL A

VER

AG

E




KPMG Thought LeadershipKPMG Thought Leadership

Thought Leadership

Global Captive Finance Survey 2017Automotive captive finance companies have grown con-siderably in recent years, benefiting from high margins and somewhat manageable risk exposures. However, they face changes in the market environment, techno-logy and regulation: New market entrants are creating a more competitive environment; digitalization and new technology represent both threats and opportunities to existing players; mobility issues need to be properly addressed; recent and prospective regulatory require-ments not only impose additional compliance costs but also require firms to take a more strategic view of how they identify, measure and control risks.

Me, my life, my walletAs consumers, our choices have always been influenced and governed by multiple factors, but in today’s world this has become even more complex and subject to disruption than ever before. This motivated us to develop a framework designed to help identify what consumers value in an experience, understand which moments matter to them, get smarter about the connections that contextualize their lives, and learn about the trade-offs they make regarding time and money.

Global Manufacturing OutlookDigital technologies create tremendous opportunities for growth and transformation at the manufacturer level, but few have taken full advantage of them. In this 8th edition of the Global Manufacturing Outlook report, our findings from a survey of 300 CEOs and interviews with manufacturing industry executives and KPMG partners show there is no time to waste in building a comprehensive digital transformation strategy. Global manufacturing is being disrupted at its very foundation and industrial demarcation lines are blurring. The fourth industrial revolution is dramatically changing market entry barriers and is expected to lead to the reshaping of many companies – and even entire industries.

Status Quo of Digitalization – Experiences of the Automotive IndustryCompared to other industries, the automotive industry has the greatest advantage in terms of experience as it has been the “fastest” to adopt digital transformation. We have therefore asked executives in the automotive sector about the topics of leadership, culture, organization, processes and technology as part of our global study “Status Quo of Digitalization: Experiences of the Automotive Industry”.

Global Automotive Executive Survey 2018 Today, auto execs are surrounded by virtually unlimited white spots. The world has changed and unpredictable development cycles, indefinite touchpoints, incoherent technological roadmaps and corporate cultures are the new normal. It’s time to join forces, refocus on a strong asset-based heritage, wisely conquer new white spots and find out how and where assetbased companies can really compete with non-asset based digital giants who claim the same roles, touchpoints and profit streams.

A reality check for today’s C-suite on Industry 4.0Industry 4.0 (i4.0) is a historic paradigm shift that has the remarkable potential to catapult manufacturing into the next generation. But true progress remains limited. Bold digital transformation is being thwarted by familiar roadblocks – including a lack of leadership and strategic direction, confusion, fear of disruption, ROI uncertainties and more. KPMG's latest report – A reality check for today’s C-suite on Industry 4.0 – examines what some firms are doing right and what many others must do better to manage the most-complex business challenge to emerge in generations. CEOs and their organizations need to pursue an informed, strategic, value-based approach to Industry 4.0.

Autonomy delivers: An oncoming revolution in the movement of goodsIn last year’s white paper, Islands of Autonomy, we described how autonomous vehicles would transform consumer mobility on the islands – those urban areas where population density, available technology and the regulatory environment accelerate the adoption of autonomous measures. Consumer mobility, however, is only half the story in regard to what is being transformed by autonomy. This year, we want to tell the other half: consumers using autonomous delivery to move goods. This equally powerful change in consumer behavior will lead to an explosive new demand for autonomous delivery vehicles, specialized for different kinds of delivery, as well as new service businesses and new infrastructure.

O C T O B E R 2 0 1 7J U N E 2 0 1 8N O V E M B E R 2 0 1 8A P R I L 2 0 1 9

J A N U A R Y 2 0 1 8

N O V E M B E R 2 0 1 8N O V E M B E R 2 0 1 8



Filter Regional ClusterAlle

Filter CountryAlle

Filter StakeholderAlle

Filter Job TitleAlle

Filter Revenue SegmentationAlle

.

Agree

Undecided

Disagree

77%

16%

7%

The richness of mineral resources of a country decides on which powertrain technology will dominate:Countries with a high degree of raw materials such as oil and gas will go for combustion engines andfuel cell technology (e.g. USA) - countries with high electrical energy capacity will rather go for theelectric powertrain (e.g. China).

Choose your view by: Stakeholder n= 981

OEMs Suppliers ICT Companies Mobility ServiceProviders

Dealers Financial Services Energy / infrastructureproviders

Governmentauthorities

80% 77% 77%82%

71%75%

69%

78%

17% 16%20% 18%

4%7% 9% 7%

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.

powered by

8

2

4

6 5 1

3

7

9

Executive view:

Contains 981 interviewed

executives from 41 countries

Consumer view:

Contains over 2,000 interviewed

consumers from 41 countries


How to use the online plattformAcknowledgements

I wish to personally thank our respondents and contributors for their involvement in this year’s survey

The GAES 2019 is a fully interactive online plattform

Explore multiple dashboards within one “story”For several topics, there will be more than just one analysis! Use the navigation bar 1 to switch between dashboards and click your way through the story with different analyses!

Customize each dashboardApply several filters, try correlations and find out more about differences between e.g. regional perspectives 2 or differing stakeholder views! All results displayed on a dashboard are adjusted according to the selection of applied filters 3 . The bottom analysis on a dashboard gives you a detailed split of the upper analysis results. Choose an analytical dimension 4 that best meets your interests and deepens your insight!

Maybe you are able to answer a question we haven’t even thought of …

Executive perspective vs. consumer viewExecutives and consumers were asked many of the same questions 5 . Compare answers of both respondent groups and also see that they were asked more than just conventional survey questions! Customize results of an executive view by stakeholder type, job title and revenue segmentation of the company 6 . All data displaying customer views can instead be filtered by age, living circumstances and car ownership.

Directly interact with the dashboardApart from the filter function, you can also directly interact with the dashboard if you hover over results 7 for detailed information or if you pick specific areas of interest 8 . Just click on the respective part of an analysis and you will find all displayed results filtered accordingly. The number on the right tells you how many respondents 9 your selection still counts.

There is not one global answer:

O V E R 2 M I L L I O N D I F F E R E N T V I E W S

Access the platform under automotive-institute.kpmg.de

In the 2019 survey, its 20th consecutive year, almost 1,000 senior executives from the world’s leading automotive companies were interviewed. As in previous years, participants included automakers, suppliers, dealers, financial services providers, mobility services providers and companies from the information and communication technology sector. We also interviewed energy and infrastructure providers as well as government authorities – allowing for a comprehensive and yet differentiated view across the entire ecosystem.

Additionally, more than 2,000 consumers from around the world gave us their valuable perspectives, so that we could compare them with the opinions of the leading global auto executives.

The responses were very insightful and I would like to personally thank all those who participated for giving us their valuable time.

Special thanks to my entire KPMG global automotive sector steering group and especially to the whole automotive sector team in Germany under the lead of Aline Dodd, Global & EMA Executive for Automotive, for their creativity, inspiration and dedication throughout the realization of this thought leadership project.

D I E T E R B E C K E RGlobal and EMA

Head Automotive Practice



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© 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG Inter national. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm visàvis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Publication name: KPMG’s Global Automotive Executive Survey 2019Publication number: 136015-GPublication date: March 2019Images and Illustrations: Cover: Getty Images / © john finney photography, iStockphoto / © halfbinz, Shutterstock / © Georgejmclittle, Shutterstock / © o_du_vanCredits: KPMG‘s Global Automotive Executive Survey 2019 | © KPMG Automotive Institute

www.kpmg.com/automotivewww.kpmg.com/socialmedia www.kpmg.com/app

Global

Dieter BeckerGlobal and EMA Head Automotive PracticeKPMG [email protected]

Aline DoddGlobal & EMA Executive for AutomotiveKPMG [email protected]

Andreas FeegeGlobal Automotive Audit LeaderKPMG in [email protected]

Peter SchalkGlobal Automotive Tax LeaderKPMG in [email protected]

Bernd OppoldGlobal Automotive Financial Services LeaderKPMG in [email protected]

Dieter BeckerGlobal Automotive Advisory LeaderKPMG [email protected]

Americas

Gary SilbergThe Americas Head of AutomotiveKPMG in the [email protected]

Sam FoglemanKPMG in the [email protected]

Ricardo BacellarKPMG in [email protected]

EMA

Dieter BeckerGlobal & EMA Head Automotive PracticeKPMG [email protected]

Aline DoddGlobal & EMA Executive for AutomotiveKPMG [email protected]

Ulrik AndersenKPMG in [email protected]

Justin BensonKPMG in the [email protected]

Begoña Cristeto BlascoKPMG in [email protected]

Laurent Des PlacesKPMG in [email protected]

Fred Von EckardsteinKPMG in South [email protected]

Rune GrøndahlKPMG in [email protected]

Björn HallinKPMG in [email protected]

Angelika Huber-StraßerKPMG in [email protected]

Péter Kiss KPMG in Hungary [email protected]

Loek KramerKPMG in the [email protected]

Klaus MittermairKPMG in [email protected]

Hakan Ölekli KPMG in [email protected]

Vinodkumar RamachandranKPMG in [email protected]

Fabrizio RicciKPMG in [email protected]

John Thomas SørhaugKPMG in Norway [email protected]

Axel ThümlerKPMG in [email protected]

Roman WenkKPMG in [email protected]

Asia Pacific

Seung Hoon WiKPMG in [email protected]

Megumu KomikadoKPMG in [email protected]

Norbert MeyringKPMG in China [email protected]

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