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24th Annual

Global Automotive Executive Survey

GETTING REAL ABOUT THE EV TRANSITION

 

It’s still an exciting—and rewarding—journey, but it may take longer and the
ride won’t be smooth.




24th Annual

Global Automotive Executive Survey 

GETTING REAL ABOUT THE EV TRANSITION

 

It’s still an exciting—and rewarding—journey, but it may take longer and the
ride won’t be smooth.




Our 24th Annual KPMG Global Automotive Executive Survey comes at a pivotal
moment for automakers. The business opportunities have never seemed greater,
driven by advances in electric powertrains, self-driving technology, and the
promise of a more magical customer experience in the vehicle. In the factory,
the showroom, and on e-commerce sites, AI and other technologies are changing
how cars are made, sold, and serviced.

Three years ago, when we published “Place your billion-dollar bets wisely:
Powertrain strategies for the post-ICE automotive industry,” we laid out the
challenges and opportunities in the development of the market for electric
vehicles. Then, even predictions of analysts diverged on how rapidly EVs would
penetrate global markets.1 Last year there was still wide variation in
expectations about EV uptake among executives in our annual survey.2 

But our latest survey of more than 1,000 executives in 30 countries, shows that
the industry is becoming more sober about market prospects. Having committed
more than half a trillion dollars to the EV transition, the industry is asking
when companies will see a return on the investment. Right now, almost all
automakers are losing money on battery-electric vehicles, possibly presaging a
shakeout among vehicle manufacturers and suppliers.3

Our 24th annual survey examines in detail how executive sentiment is changing
and the concerns and challenges that make global automotive leaders more
cautious. The upshot: to help ensure companies end up as winners, not losers,
executives should rethink their strategies and ask themselves some important
questions: 



 * Is the current slowdown in the growth rate of EV sales merely a pause or a
   sign of a more prolonged reassessment by consumers? Will their enthusiasm be
   rekindled by the new models about to hit the market?
 * How long will it take to turn a profit on battery-electric vehicles (BEVs)
   and will manufacturers have enough cash to see them through?
 * Will governments continue to be able to afford to subsidize the purchase of
   BEVs? 
 * What role will other powertrain choices such as hybrids and hydrogen fuel
   cells play in the market?
 * What are the strategic choices for suppliers that are being squeezed by
   market changes, new competition, and rising demands of original equipment
   manufacturers (OEMs)? How can they thrive, not merely survive, in this new
   market?
 * How much should automotive firms vertically integrate—in car operating
   systems, battery supply chains, and computer chips? 
   
   

Finding the right answers to these and other strategic questions will help
determine how companies succeed in the coming years. We believe that a dazzling
future for the automotive business—with amazing products, more delighted
consumers, and a positive impact on the planet—is still in view. But getting
there will require overcoming near-term challenges. 



Gary Silberg

Global Head of Automotive

KPMG International

1 KPMG International, “Place your billion-dollar bets wisely: Powertrain
strategies for the post-ICE automotive industry” (July 2021)

2 KPMG International, “23rd Annual Global Automotive Executive Survey” (July
2022)

3 MotorBiscuit, Nathaniel Ehinger, (November 20, 2023)



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