KPMG – Global Automotive Survey, 2024

KPMG's 24th Annual Global Automotive Executive Survey highlights the crucial moment the automotive industry is facing. The advancements in electric powertrains, self-driving technology, and improved customer experiences are presenting significant business opportunities for automakers. The use of AI and other technologies is also transforming the way cars are manufactured, sold, and serviced. The survey reflects a shift in the industry's sentiment compared to three years ago when predictions about the penetration of electric vehicles (EVs) were uncertain. However, with the industry having invested over half a trillion dollars in the transition to EVs, executives are now questioning when they will see a return on their investment. The survey emphasizes the need for companies to reassess their strategies and consider important questions. These include whether the current slowdown in EV sales is temporary or indicative of a longer reassessment by consumers, the timeline for profitability in the battery-electric vehicle market, the sustainability of government subsidies for EV purchases, the role of other powertrain choices like hybrids and hydrogen fuel cells, and the strategic choices for suppliers amidst market changes and rising demands from original equipment manufacturers (OEMs). Additionally, companies need to determine the level of vertical integration in areas such as car operating systems, battery supply chains, and computer chips. By answering these strategic questions, companies can navigate the challenges and achieve success in the future of the automotive industry, which promises amazing products, satisfied consumers, and positive environmental impact.