Steering towards Automotive Excellence

The mobility landscape is evolving; geopolitical uncertainties, technological leaps, and a pressing call for sustainability are not just challenges but opportunities for those ready to drive change and lead their business toward sustainable growth. In a sector that is shifting gears at an unprecedented pace, KPMG navigates the complexities that businesses are facing.

Strategic imperatives

Discover the industry challenges currently reshaping the automotive landscape, including innovations in technology, new business models and evolution in the market.

Client results

Explore pivotal engagements where our services enabled significant advancements for clients. Clients include automotive industry actors across the entire mobility value chain, ranging from Original Equipment Manufacturers (OEM) to suppliers and beyond.

Leadership and innovation

Explore our unique and tailored capabilities that enable automotive companies to reach new successes. These include our sector expertise across all relevant functions, our global network of Insights Centers boosting innovation and Center of Excellences focusing on mastering complex industry challenges.

Business insights and news

Stay informed with the latest automotive thought leadership and trends as we bring forth analyses vital for industry stakeholders and enthusiasts alike. Find news about KPMG events and automotive community engagement.

Strategic imperatives

The Road Forward: Understanding Automotive Industry Challenges according to the KPMG 24th Global Automotive Executive Survey.

Strategic
imperatives

Leaders have a more mature view of the EV transition

  • The estimated timing of transition to EV powertrain as mainstream has narrowed compared to previous years. This indicates a more mature—and realistic—view of how quickly EV penetration will occur.
  • China is expected to have the highest market penetration of EVs in 2030 rising to an estimated 36%.
  • Cost parity is still far off as the industry is less optimistic, compared to previous years, that EVs can reach cost parity with conventional cars before 2030.

The charging market is up for grabs, but Tesla continues to have a strong position

  • No clear leader has been established within the in the charging market ecosystem.
  • Potential future leaders within the charging value chain are estimated to be charging networks, electric utilities, and existing fuel stations.
  • Pressure to build an effective charging network will only grow, due to range anxiety and car owners becoming increasingly demanding about charge times in secure locations.

Automotive industry margins are under pressure

  • Around the world, manufacturers are less confident that the industry will achieve more profitable growth over the next five years due to concerns over the global economy and rising costs.
  • Entry of Chinese players with access to low-cost manufacturing, advanced technology, and ability to set up factory plants are rapidly challenging traditional established OEMs.
  • Big bets amongst passenger vehicle companies on electric propulsion that is not yet realizing its full potential generates concern on postponement of near-term payoffs.

Arrival of Autonomous vehicles is expected post 2030

  • However, there are significant differences within expectations across various regions, with China being most positive and India being the most hesitant.
  • Autonomous technology has arrived, but a critical question is when it will be adopted widely and become a mainstream component of future transportation.
  • One manifestation of new technology is autonomous ride hailing and delivery, spurring a growing expectation of a faster introduction of autonomous vehicles in major cities.

Connecting to the customer is a key differentiator

  • While performance remains the most important selling point for customers, the need for a seamless and hassle-free customer experience has moved up to second place.
  • The emphasis on a smooth customer experience extends from buying the car to having seamless operating software within the vehicle, the latter proves to be a challenge for the manufacturers.
  • OEMs are showing less confidence than in previous years in their ability to generate revenue through subscription services.

"Just in case" is overtaking "just in time"

  • As businesses recover from disruptions in the supply chain in the past few years the new normal in supply chain management is becoming “just in case”, rather than “just in time”.
  • Companies are developing a wide range of strategies to build resilience against supply chain disruptions.
  • Chinese OEMs are less worried about continuity of supply, likely because the country has been providing much of the supply of key commodities, particularly raw materials for EV batteries and EV components.

Labor shortages remain a concern

  • The level of concern for labor shortages is higher among tech companies in the auto industry than in other categories, as demand for specialized skills remains strong. In addition, the increased importance of integration of technology solutions alongside hardware is accelerating the labor shortage problem.
  • Some OEMs have set up R&D and design shops in Silicon Valley, whilst also recruiting technology leaders, showing the need to increase tech competence in the industry.
  • Demand for specialized tech skills lead the automotive sector toward needing to adhere to the “Silicon Valley mindset and way of working” to increase attractiveness as employers, reducing working hours and improving employee benefits.

Technology challenges grow more complex whilst opening opportunities for agile players

  • Automakers indicate that they feel less prepared than in 2022 for advanced technologies, such as artificial intelligence (AI), digital twins and advanced robotics.
  • The rapid advances in AI, particularly generative AI, which is expected to bring automation to white-collar jobs, has negatively impacted confidence.
  • When it comes to powertrain technology, more companies are hedging their bets this year.
S t r a t egic impe r at i v e s Leaders view on the electrical vehicle (EV) transition "Just in case" is overtaking "just in time" Customer connection is a key differentiator Automotive industry margins are under pressure Technology challanges The charging market is up for grabs $ Labor shortages The arrival of autonomous vehicles
Leaders have a more mature view of the EV transition
  • The estimated timing of transition to EV powertrain as mainstream has narrowed compared to previous years. This indicates a more mature—and realistic—view of how quickly EV penetration will
    occur.

  • China is expected to have the highest market penetration of EVs in 2030 rising to an estimated 36%.

  • Cost parity is still far off as the industry is less optimistic,
    compared to previous years, that EVs can reach cost parity with
    conventional cars before 2030.

The charging market is up for grabs, but Tesla continues to have a strong position
  • No clear leader has been established within the in the charging market ecosystem.

  • Potential future leaders within the charging value chain are estimated to be charging networks, electric utilities, and existing
    fuel stations.

  • Pressure to build an effective charging network will only grow,
    due to range anxiety and car owners becoming increasingly demanding about charge times in secure locations.

Automotive industry margins are under pressure
  • Around the world, manufacturers are less confident that the
    industry will achieve more profitable growth over the next
    five years due to concerns over the global economy and rising
    costs.

  • Entry of Chinese players with access to low-cost manufacturing, advanced technology, and ability to set up factory plants are
    rapidly challenging traditional established OEMs.

  • Big bets amongst passenger vehicle companies on electric propulsion that is not yet realizing its full potential generates
    concern on postponement of near-term payoffs.

Arrival of Autonomous
vehicles is expected post 2030
  • However, there are significant differences within expectations
    across various regions, with China being most positive and
    India being the most hesitant.

  • Autonomous technology has arrived, but a critical question is when
    it will be adopted widely and become a mainstream component of future transportation.

  • One manifestation of new technology is autonomous ride hailing
    and delivery, spurring a growing expectation of a faster
    introduction of autonomous vehicles in major cities.

Connecting to the customer is
a key differentiator
  • While performance remains the most important selling point for customers, the need for a seamless and hassle-free customer experience has moved up to second place.

  • The emphasis on a smooth customer experience extends from buying the car to having seamless operating software within the vehicle, the latter proves to be a challenge for the manufacturers.

  • OEMs are showing less confidence than in previous years in their ability to generate revenue through subscription services.

"Just in case" is overtaking "just in time"
  • As businesses recover from disruptions in the supply chain in
    the past few years the new normal in supply chain management is becoming “just in case”, rather than “just in time”.

  • Companies are developing a wide range of strategies to build resilience against supply chain disruptions.

  • Chinese OEMs are less worried about continuity of supply, likely because the country has been providing much of the supply of key commodities, particularly raw materials for EV batteries and EV components.

$ Labor shortages remain a concern
  • The level of concern for labor shortages is higher among tech companies in the auto industry than in other categories, as
    demand for specialized skills remains strong.

  • In addition, the increased importance of integration of technology solutions alongside hardware is accelerating the labor shortage problem.

  • Demand for specialized tech skills lead the automotive sector needing to adhere to the “Silicon Valley way of working”, reducing working hours and improving employee benefits.

Technology challenges grow more complex whilst opening opportunities for agile players
  • Automakers indicate that they feel less prepared than in 2022 for advanced technologies, such as artificial intelligence (AI), digital
    twins and advanced robotics.

  • The rapid advances in AI, particularly generative AI, which is
    expected to bring automation to white-collar jobs, has negatively impacted confidence.

  • When it comes to powertrain technology, more companies are hedging their bets this year.

Metrics

With a global presence and deep industry knowledge, KPMG provides strategic guidance, innovative solutions and actionable insights to help automotive companies navigate complex challenges and seize opportunities in today's dynamic market.

 

Whether it is strategic positioning, bringing M&A to a success, enhancing operational efficiency, driving innovation, optimizing supply chains, or addressing regulatory and sustainability concerns, KPMG's automotive professionals are dedicated to proactively delivering value and driving success for clients across the industry landscape.

KPMG countries
world-wide

Industry-aligned
professionals

Forbes Global 2000 & Fortune 500 CV & PV companies are customers to KPMG

Leadership and innovation

Our unique offerings include the focus on business innovation across the mobility value chain and Automotive sector leadership. This is amongst others manifested through our global network of KPMG Insights Centers and our Global industry Center of Excellence. Both can be accessed remotely and visited on-site in Gothenburg.

Together, these unique offerings provide our clients with unparalleled access to innovative strategies, best practices, and emerging trends that are crucial for navigating the complexities of the automotive landscape.

Industry Center of Excellence

Explore our Global Center of Excellence within the industry, where industry-leading expertise meets advanced analytics to drive innovation and optimize performance in the automotive sector.

Coming soon

Nordic Insights Center

Discover our Global Network of KPMG Insights Centers, where innovative research and data analytics converge to deliver strategic foresight in the ever-evolving automotive industry landscape.

Find out more >

Client results

Dive into our case studies showcasing examples on how we have guided key players in the automotive industry through complex challenges. Ranging from fortifying risk frameworks to optimizing business models for enhanced enterprise performance management.

Each story is a blueprint of our commitment to client success and industry advancement. Discover how our tailored solutions have helped automotive companies adapt to rapidly changing market demands and regulatory environments.

Offerings

Our Swedish practice is integrated into KPMG's worldwide automotive advisory network. This is how we can help you.



    Corporate
    strategy



    Sustainability



    Customer
    centricity



    Deal
    advisory



    Technology, AI
    and data analytics



    Restructuring
    and turnaround



    Market
    entry



    Finance



    Tax



    Regulatory advisory
    and reporting



    Operational transformation
    and supply chain optimisation

The team

Do you have any questions? Let our experts help you.