92% of global executives in the automotive industry indicate that the highest priority for vehicle buyers is a long-lasting car with lower fuel consumption, and 79% of respondents indicate that the last Safety innovations continue to be a fundamental factor when choosing a car, according to KPMG International, a network of multidisciplinary firms that provide Audit, Tax, and Advisory services.
According to the 15th Global Survey of Automotive Executives 2014: Strategies for a rapidly evolving market, vehicle manufacturers undergo major changes: from strategic alliances to growth based on production and sales volume and emphasize generating solutions and mobile technology for the subsistence of Original Equipment Manufacturers (OEMs) in the automotive value chain. In turn, it recognizes the growing power of Brazil, Russia, India and China (BRIC) and the increase of alternative powertrain technologies as one of the significant influences that shape this sector.
Consumers still want fuel-efficient and longer-lasting vehicles with automotive technology.
Currently, the highest priority for vehicle buyers is a long-life car with a lower consumption of gasoline (92% of executives surveyed indicate that it is a priority for buyers).
Consumer preferences for alternative fuel technologies have taken a lower priority in pursuit of economy. Less than half of respondents feel that this factor is decisive for buyers. However, having an innovative vehicle is another important consideration for consumers.
Automotive Trend 1: pluggable hybrids
“The continuing concern of the consumer for fuel efficiency and contamination is urging vehicle manufacturers to focus on plug-in hybrid technologies and fuel cells for the near future,” according to Albrecht Ysenburg, a leading partner in the Automotive Industry.”
According to the study, connectable hybrids will lead the pack among electronic vehicles in the race to produce cleaner and more efficient cars.
Connectable cars are expected to attract the highest demand for an electric vehicle, both for the TRIAD and BRIC markets. The fuel cell cars also experience an increase in their popularity, 69% of respondents consider this technology as decisive for future growth.
Despite this confidence, most of the vehicle manufacturers’ investment will continue to decrease the Internal Combustion Engine (ICM), which could slow down the advances in electronic cars; 77% of the sample indicated that the reduction and optimization of the MCI is a key aspect, compared to only 59% that was inclined to those battery-powered technologies.
2. Automotive Trend: Autonomous driving
Change in driving technology among vehicle manufacturers
As vehicle manufacturers consider ways to grow in organic terms, technological leadership could be decisive for the survival of a company. For Ysenburg: “The demand for autonomous driving is leading vehicle manufacturers to become providers of mobility solutions,” because “there is a strong correlation between technological leadership and the ability to remain independent, and we can see this from the importance that vehicle manufacturers are giving technological advances to improve their mobile solutions. ”
With more technology integrated into current vehicles, the self-driving trend becomes a real possibility for the market. However, only 14% of respondents feel that these vehicles represent one of the key industry trends, although these figures differ greatly by country. In the BRIC countries, the expectations of self-driving vehicles are higher (23%) than in the TRIAD countries (11%).
3. Transportation options
As the world population grows, usage patterns and vehicle ownership change and mobility solutions such as carpooling become increasingly popular.
Many of the major automotive brands are moving to this space, although not always, necessarily, they involve a physical car, but a wide range of transportation options.
Respondents predict that up to a third of city dwellers will use these services in 2029 (a huge increase compared to the results of the 2013 survey).
The growing Automotive trend of autonomous driving (the self-driving vehicle) can have a greater positive impact on the development of mobility solutions. In fact, the ability to ‘order’ a car that ‘arrives’ when you want it to go where you want to go. It’s may actually make it unnecessary to own it. This could greatly contribute to the increase in models of mobility solutions. Perhaps eliminating the need to own a second family car.
4. online sales
Online sales will grow, but distributions will be divided in the future
The future of automotive distributions is divided: 53% of respondents. The respondents believe that automotive distribution models do not work for the future market. With retail and multi-brand online suppliers that could grow significantly.
The importance of the online model for retail car sales is growing 71% in 2014. It is interesting that only 60% of the distributors surveyed feel that the online route will prosper. Suggesting a reluctance to recognize the change to online sales.
5. Emerging markets
Vehicle sales in emerging markets will be accelerated. 85% of respondents indicate that growth in the BRIC countries and other emerging markets is the industry’s biggest automotive trend until 2025. “As BRIC countries assume a greater share of the global market. Executives face difficult decisions on how to expand alliances and with whom to do it. As well as how to respond to the competition in the development, “said the leading partner of the Automotive Industry of KPMG. He added that: “With these challenges comes the massive opportunity for both manufacturers and distributors to take advantage of the incredible long-term potential.”
However, this perspective can not materialize as quickly as some executives predict. “Although the respondents are optimistic, this scenario cannot be developed in some BRIC countries, where the quality levels of national vehicles do not resemble the standards of the Western counterparts. To export to more mature markets, brand perceptions and distribution networks would have to improve significantly, “Ysenburg said.
Sales are expected to skyrocket in the BRIC countries. Since 7 of the first 10 OEMs expected to grow in the next five years will come from these nations. 66% of respondents predict that the Russian manufacturer Avtovaz will be among the first three OEMs to gain market share. Advancing 18 places in the KPMG 2013 automotive survey.
Ysenburg notes: “This industry continues to attract foreign investment and is expected to produce 4 million cars by 2017. Exports to countries other than the United States are increasing, which reduces the close link with the performance of the US economy. ”
The growth of sales in the domestic market will be continuous and will reach the 8% mentioned above. Domestic car sales will surely oscillate around two million units.