KPMG INTERNATIONAL   KPMG’s Global     Automotive       Executive    Survey 2012Managing growth while navigating          ...
II | KPMG’s Global Automotive Executive Survey 2012AcknowledgementsThe Global Automotive Executive Survey is KPMG Internat...
Foreword                                                                                 Imagine the following scenario, i...
IV | KPMG’s Global Automotive Executive Survey 2012© 2012 KPMG International Cooperative (“KPMG International”), a Swiss e...
Contents                                                                                                                  ...
2 | KPMG’s Global Automotive Executive Survey 2012                                      Executive summary                 ...
KPMG’s Global Automotive Executive Survey 2012 | 3                                                                        ...
4 | KPMG’s Global Automotive Executive Survey 2012The bigger picture: market trendsThe changing natureof mobilityKPMG’s 20...
KPMG’s Global Automotive Executive Survey 2012 | 5    The most important trends in the industry in the next 15 years      ...
6 | KPMG’s Global Automotive Executive Survey 2012Markets are converging faster thanyou thinkThe concept of a two-tier glo...
KPMG’s Global Automotive Executive Survey 2012 | 7Not faster, higher, further – but nicer,safer, greener!In common with pr...
8 | KPMG’s Global Automotive Executive Survey 2012Electric component suppliers takingcenter stage                         ...
KPMG’s Global Automotive Executive Survey 2012 | 9    Increasing significance of new players in the automotive value chain...
10 | KPMG’s Global Automotive Executive Survey 2012Core competencies have to be redefinedOEMs will remain the major force ...
KPMG’s Global Automotive Executive Survey 2012 | 11There is considerable uncertainty                                      ...
12 | KPMG’s Global Automotive Executive Survey 2012New technologyElectromobility is everywhere –except upon the roadsElect...
KPMG’s Global Automotive Executive Survey 2012 | 13    Picking the winners     With new technologies playing an ever great...
14 | KPMG’s Global Automotive Executive Survey 2012The anticipated success of different                                   ...
KPMG’s Global Automotive Executive Survey 2012 | 15                                 KPMG insights                         ...
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
KPMG’s Global Automotive Executive Survey 2012
Upcoming SlideShare
Loading in...5
×

KPMG’s Global Automotive Executive Survey 2012

5,094

Published on

Published in: Business, Career
1 Comment
31 Likes
Statistics
Notes
  • Hello,
    Its my pleasure to write you after going through your profile at ( www.slideshare.net) and have much interest to contact you for a good relationship, please i will like you to contact me through my email address (lizzyassane38@yahoo.com)for easiest communication so that i will explain to you further about me and also give you my picture, i am expecting your respond to my email address above.
    Lizzy.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
5,094
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
1
Likes
31
Embeds 0
No embeds

No notes for slide

Transcript of "KPMG’s Global Automotive Executive Survey 2012 "

  1. 1. KPMG INTERNATIONAL KPMG’s Global Automotive Executive Survey 2012Managing growth while navigating uncharted routes kpmg.com/automotive
  2. 2. II | KPMG’s Global Automotive Executive Survey 2012AcknowledgementsThe Global Automotive Executive Survey is KPMG International’s annualassessment of the current state and future prospects of the worldwideautomotive industry. In this year’s survey, 200 senior executives from theworld’s leading automotive companies were interviewed, including automakers,suppliers, dealers, financial service providers, and for the first time mobilityservice providers. The responses make for compelling reading and we would liketo thank all those who participated for giving us their valuable time.We would also like to acknowledge and thank the following senior executiveswho participated in in-depth interviews to provide further insight:(Listed alphabetically by organization name)Dr. André StoffelsHead of StrategyAudiSteven BridgelandSenior Product Manager, Windows EmbeddedMicrosoftSpecial thanks to Moritz Pawelke, Meghan Bestedand Martha Collyer for their efforts.© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  3. 3. Foreword Imagine the following scenario, involving an urban dweller, possibly living in a mega-city like Beijing, Sao Paulo, New York, London or Mumbai. As she walks out of her apartment, her smartphone directs her to the nearest available shared electric car, unlocks the door and starts the engine. Once inside, she gets an immediate report on traffic conditions and train times, voice messages from email and a sample from her favorite band’s new album. She drives to the station, takes a train Executives from the world’s leading to the airport and boards her plane, automotive companies were all of which happens seamlessly, as interviewed for this year’s survey, every stage of her trip is booked and representing the views of a variety of paid for through a single ‘mobility traditional mobility stakeholders such provider’. At her destination she as OEMs, suppliers and dealers, as takes another shared car and so her well as new players claiming their place voyage continues. at the table, including mobility service providers and IT and connectivity Automotive executives have plenty to companies. Their responses make a think about as they navigate the new valuable contribution to the debate on urban landscape and determine the role the industry’s future development. their company plays in such a journey. Finally, as KPMG’s new Global Head of The main industry players need to Automotive, I would like to thank my figure out the best ways to develop predecessor Dieter Becker, without technologies that will drive future whom this report would not have revenues, whether it is electronic been possible. Dieter’s deep industry components for fuel cell or battery- insights, forward-thinking ideas and electrified vehicles, lightweight body passion shaped the KPMG Automotive materials for urban car concepts, practice and I wish him all the best or software for in-car added- for his important new role within value services for the connected KPMG Advisory. generation – many of whom won’t even own their own car. In this, KPMG’s thirteenth annual Global Automotive Executive Survey, we gain a deeper insight into how the sector is addressing these and other issues such as the increasing power of the emerging nations, and the continuing overcapacity around Mathieu Meyer the world. Global Head of Automotive© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  4. 4. IV | KPMG’s Global Automotive Executive Survey 2012© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  5. 5. Contents Executive summary02 The bigger picture: market trends The changing nature of mobility04 New technology Electromobility is everywhere – except upon the roads12 New urban mobility concepts The changing face of urban motoring19 Connected car solutions Paving the information highway: the car as access point to a connected world25 Retail trends Spotlight on service-orientation and new technology financing29 Cooperation and alliances Facing the future together 32 Emerging markets The BRICs continue to be the new powerhouses – but Chinese exports are also gaining momentum37 Overcapacity The specter of overcapacity and excess production will haunt the industry45 Conclusions What does it take to succeed in the new mobile landscape?52 About the survey56© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  6. 6. 2 | KPMG’s Global Automotive Executive Survey 2012 Executive summary Electromobility remains Innovative urban mobility challenging concepts getting popular • 65 percent see hybrids as best • 50 percent think urban planning mid-term solution influences car usage and design – especially in the emerging markets’ • 20 percent believe fuel cells will attract megacities more consumer demand than battery electric cars (16 percent) in 2025 • Potential urban customer base for mobility services in the BRICs • 9–14 million new electrical vehicles ranges from 100-190 million in will be registered in TRIAD and BRIC 15 years’ time markets by 2026 Managing OEMs on top of realigning value chain while uncharted • 54 percent expect that electric component suppliers will gain in significance in the value chain • OEMs will lead the value chain, even for new technologies (e-power train and connectivity) and mobility services Overcapacity and excess production are unresolved issues • 42 percent see the U.S. as the most overbuilt mature market, which does not reflect reality, followed by Germany and Japan • 51 percent think China will be the most overbuilt BRIC market in 2016, followed by Brazil • The global automotive market is predicted to be overbuilt byNote: Percentages may be rounded 20-30 percent by 20161 TIME = Telecommunications, Information Technology, Media EntertainmentSource: KPMG’s 2012 Global Auto Executive Survey© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  7. 7. KPMG’s Global Automotive Executive Survey 2012 | 3 Ubiquitous connectivity is changing customer behavior • 63 percent expect a convergence of the TIME1 and automotive industry • Future customer generations demand a symbiotic relationship between car and IT solutions • Modularization is the best response to varying technology lifecycles Retail: service-orientation financing e-componentsgrowth • Majority (74 percent) see servicenavigating quality as major influence onroutes purchasing decisions • Growing importance of financing e-components (35 percent) Joint ventures and alliances Growing strength of the best solution to cut through emerging markets complexity • 75 percent expect mature and • 38 percent consider developing new emerging markets to converge products/technologies as main by 2025 strategy to generate growth • Estimated sales in the BRICs: • 34 percent see JVs alliances as 29-39 million vehicles in 2016 the preferred strategy to access new products/technologies • 32 percent see China exporting 1 million vehicles or more by 2014 © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  8. 8. 4 | KPMG’s Global Automotive Executive Survey 2012The bigger picture: market trendsThe changing natureof mobilityKPMG’s 2012 global survey shows that the automotive industrycontinues to face environmental challenges, growing urbanizationand shifting customer behavior, which calls for radical newapproaches to future mobility. And these issues are becominguniversal, with three-quarters (75 percent) of respondentsbelieving that emerging and mature markets will convergeby 2025.Given the growing pressures on fuelefficiency, it is no surprise that the car anymore. In this regard, intelligent mobility services, e.g. car-sharing, Environmentalvast majority consider electromobility should not be neglected. Despite issues, growingto be the most pressing trend in the the omnipresence of electromobility,automotive industry, either driven via respondents consider such approaches urbanization andbatteries, ranked as most important, orfuel cells, which come a close second. as the forth most important trend for the coming 10-15 years. changing customerIn the face of growing urbanization, Another area of growing importance behavior arecity dwellers need cars adapted totheir particular environment, which is financing and leasing options, especially in emerging markets, where the key issuesexplains why urban-oriented design is the potential of finance and lease influencing theconsidered the third most importanttrend for the future of the automotive services for the growing middle class has barely been tapped. global automotiveindustry. Connected car concepts are also on the industry.Furthermore, as cities seek to reduce agenda of automakers, as more andpollution and congestion, car ownership more vehicles continuously interactwill become restricted and not available with the real and virtual world aroundfor everyone. them. This trend is set to accelerate to mass-market levels, not least becauseOne could take it even further: Even if it increases vehicle safety.car design is adapted to urban habits,not everybody wants to have his own© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  9. 9. KPMG’s Global Automotive Executive Survey 2012 | 5 The most important trends in the industry in the next 15 years KEY ISSUES KEY TRENDS RESPONDENTS RANKING o Battery electric ENVIRONMENTAL ISSUES ICE DOWNSIZING N1 mobility “Fuel efficiency and environmental friendliness o Fuel cell electric rated as most important ELECTROMOBILITY N2 mobility product issues.” Innovative urban LIGHTWEIGHT o MATERIALS N3 vehicle design URBANIZATION concepts “Congestion and limited INNOVATIVE parking space are expected URBAN CAR to be major concerns in DESIGN CONCEPTS megacities.” o N4 Mobility services CHANGING CUSTOMER OEM CAPTIVE BEHAVIOR FINANCING MOBILITY The world is moving AND LEASING SERVICES from car ownership to car usership. o OEM captive N5 financing and “Customers expect the leasing same services when in the car as they receive CONNECTED CAR at home, at work or on CONCEPTS o Connected car their smartphone.” N6 conceptsSource: KPMG’s 2012 Global Auto Executive Survey © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  10. 10. 6 | KPMG’s Global Automotive Executive Survey 2012Markets are converging faster thanyou thinkThe concept of a two-tier global industry fiercer competition from the BRICs overis rapidly becoming redundant. The vast traditional and new technologies in theirmajority of respondents believe that by domestic markets.2025, the emerging and mature markets Chinese car manufacturers such as SAIC,will converge in terms of customer Geely and BYD, are setting their sightsrequirements for quality, safety, and on the global car market with vehiclesreliability, as well as for vehicle segment that are becoming technologicallyshares between low-cost and premium. competitive. Pedro Nueno, President ofSuch convergence has big implications the China Europe International Businessfor OEMs from developed countries. School, even feels these companiesOn the one hand an expanding range could become established in the Westof market opportunities will open up, within a matter of years, especially withincluding electric vehicles and mobility electric vehicles.services; however, they can also expect Convergence of mature and emerging markets by 2025 75 percent of 5.5% 9% 17% respondents believe 19.5% 20.5% emerging markets will face the same opportunities 75% 70.5% 83% and challenges as developed countries by 2025. All respondents Respondents Respondents from the TRIAD from the BRIC Yes No Don’t KnowSource: KPMG’s 2012 Global Auto Executive Survey© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  11. 11. KPMG’s Global Automotive Executive Survey 2012 | 7Not faster, higher, further – but nicer,safer, greener!In common with previous KPMG globalautomotive surveys, fuel efficiency One issue that appears to be undervalued is in-car internet Customers are(76 percent) remains the single biggest connectivity. The younger generation becoming lessfactor when buying a vehicle, although in particular expects to enjoy the sameit dropped by an astonishing 20 percent range of services in their vehicles as certain of theirsince 2009. they can get at home, in the office or on their smartphone, including music, reasons forWhen comparing responses to theprevious 2011 survey, only “enhanced telecommunications and internet purchasing vehicles. access, as well as a navigation systemvehicle lifespan” received a higher rating, that integrates with broader trafficwith all other responses declining in control systems to make their journeyimportance, suggesting that customers as efficient as possible. Automotiveare becoming less certain in their tastes companies should not neglect theand attitudes towards vehicles. vast, under-exploited potential for revenue from connectivity services and software solutions. Product issues influencing consumer purchase decisions 96% 94% 91% 81% 82% 76% 75% 76% 74% 72% 71% 69% 70% 70% 65% 64% 64% 61% 61% 56% 57% 56% 55% 53% 49% 49% 43% 42% 43% 40% × × × × × × Fuel Environmental Safety Vehicle Ergonomics Use of Vehicle-bound Enhanced Telematics/ efficiency friendliness innovation styling and comfort alternative fuel internet vehicle personal technologies connectivity lifespan assistance and built-in services technologiesNote: Percentage of respondents rating issues as importantSource: KPMG’s 2012 Global Auto Executive Survey 2012 2011 2010 2009 × No data available © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  12. 12. 8 | KPMG’s Global Automotive Executive Survey 2012Electric component suppliers takingcenter stage 54 percent ofThe automotive value chain is undergoing investing in research and developmentchange and the battle for control is (RD) to independently come up withheating up. Fifty-four percent of the completely new car concepts, e.g.survey participants feel that electric Johnson Controls’ ie:3. respondents believecomponent suppliers will gain a moresignificant role in the next fifteen years, Another surprise is the low importance electric component attached to independent mobility servicereflecting the continued rise of electric providers such as Better Place or Zipcar, suppliers will gainparts within both ICE1-driven cars and thenew electrified vehicle concepts. And which already operate successfully in several cities and countries. This is all the a more significantwith efficiency and safety a high priority,suppliers of strong, lightweight materials more surprising given that OEM captive role by 2025, but approaches from Daimler, BMW, VW andsuch as carbon fiber are also becoming Peugeot have mostly just entered the underestimatemore influential.Tier ‘0.5’ suppliers2 are not considered to pilot phase. the importancebe a threat to the dominance of OEMs, Finally, despite the universal use of the internet, web 2.0 brokers and of emergingwhich is somewhat contrary to currentpractice; some suppliers are already intermediaries are not thought to be a concepts and challenge to existing dealer networks.producing whole systems and even business models. KPMG insights Tightening up the supply chain Attempts by OEMs to consolidate chains, with a number of automakers their supply chains have had limited reliant upon a single Tier 3 or 4 supplier success. Not only are they faced affected by the catastrophe. By with more and more new suppliers enhancing the transparency of their from the technology sector; those supply networks, automakers can manufacturers expanding overseas become less vulnerable to natural or also require their existing suppliers to financial crises, by spreading their move with them. Meanwhile green business across multiple suppliers at Kimberly Rodriguez regulations are putting a strain on each tier level. Principal, Advisory KPMG in the U.S. supplies of commodities such as Lifecycles vary considerably between aluminum, which is in heavy demand the automotive and electronics to reduce vehicle weight and improve industries, so vehicle manufacturers fuel efficiency. should collaborate more closely with The 2011 environmental disasters in technology suppliers, to ensure they Japan and Thailand highlighted how produce the right components at the little OEMs know about their supply right time in the right quantities.1 Internal combustion engine2 Suppliers with complete car design and development capabilities including vehicle production © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  13. 13. KPMG’s Global Automotive Executive Survey 2012 | 9 Increasing significance of new players in the automotive value chain up to 2025 FINANCIAL SERVICE PROVIDER CONVENTIONAL DEALER AUTOMOTIVE ORIGINAL EQUIPMENT VALUE CHAIN SUPPLIER MANUFACTURER CAR RENTAL FLEET PROVIDER MOBILITY SERVICE PROVIDER NEW COMPONENT IS TIER NEWCOMER SUPPLIER CONNECTIVITY ‚0.5‘ OEMs WEB 2.0 BROKER Tier 1 Suppliers Original Equipment Manufacturers Captive/independent dealerships • Vehicle engine module/system • Vehicle engine design, • Showroom-bound vehicle marketing manufacturing manufacturing, assembly and sales Tier 2 Suppliers • Brand management • Vehicle maintenance services TRADITIONAL • Automotive parts manufacturing • Several OEMs vertically integrate PLAYERS (suspension, steering, driveline) e-car value chain steps from Auto rental (non-)captive financial Tier 3 Suppliers battery manufacturing to services companies e-motor production • Automotive parts manufacturing • Long-/short-term auto rental 3.5% and raw material processing • Supplier, dealer, customer 54% financing via captive financial services OEM captive Electric service arms • Leasing, financing, fleet management mobility component service suppliers providers Electric component and lightweight Newcomer OEMs Mobility Service Providers materials suppliers • Immature e-technologies and • Intra-urban car sharing/club schemes • Batteries, e-motors, power relatively low complexity allow or multi-modal mobility services 0.5% NEW electronics, semi-conductors newcomers to compete with Non-captive PLAYERS • Can be provided by: OEMs, • Carbon-fiber chassis and established players car-rentals, utilities, infrastructure mobility BUSINESS auto parts providers, public transport companies, service MODELS or new entrants providers Tier 0.5‘ Suppliers Information Systems Connectivity • Tier 1 suppliers upgrade to Companies contract manufacturers Web 2.0 Brokers/Intermediaries • Telematics, wireless communication, • Complete car design and • Vehicle brokerage via online distribution infotainment, mobile payment development capabilities channels incl. vehicle production Supply side Production side Customer interface 17% Lightweight 11% 8% 6% 0% materials IT/Connectivity Newcomer Tier ‘0.5’ Web 2.0 brokers/ suppliers companies OEMs suppliers intermediariesNote: Percentage of respondents believing a player will gain a significant roleSource: KPMG’s 2012 Global Auto Executive Survey © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  14. 14. 10 | KPMG’s Global Automotive Executive Survey 2012Core competencies have to be redefinedOEMs will remain the major force in ICE of OEMs may have been underplayed.powertrain/drivetrain technology. It is Companies such as BMW, VW and OEMs are expectednotable that Tier 1 suppliers are not evenconsidered the next most likely group to Daimler are already investing heavily in cooperation with producers of carbon to be the dominanttake control, with joint approaches seen and other substances. Yet according to force in electricas the preferred alternative. our survey respondents, Tier 1 suppliers are expected to control the RD and and traditionalPerhaps more surprisingly, 39.5 percentof respondents still foresee OEMs production of such materials. propulsioncontrolling the development andmanufacturing of e-components – OEMs are traditionally responsible for brand management and overall technologies.even though they currently have little assembly, yet the survey respondentsrecognized competence in this area. predict them to lead the value chain for powertrain and e-components – andWhen it comes to the production of even take a prominent role in lightweightlightweight materials, however, the role materials. Players responsible for important technology building blocks 25.5%Lightweight Materials (e.g. carbon fiber) 29% 39.5% 30.5%E-components (batteries, power electronics, e-motors, etc.) 32.5% 23% 46.5% 15% 26.5%ICE Powertrain/Drivetrain Technology 21% 5% 6% OEMs Joint approaches Tier 1 suppliers New component among diverse suppliers from players converging industriesNote: Percentage of respondents regarding player as responsibleSource: KPMG’s 2012 Global Auto Executive Survey © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  15. 15. KPMG’s Global Automotive Executive Survey 2012 | 11There is considerable uncertainty to hold the most promise. Battery cell,over whether any of the different pack or chemistry development ande-components provide much potential production are not thought to offerfor differentiation, with no clear favorite competitive advantage, therefore aemerging, and even a fifth believing that possibility would be to outsource thosenone offer such a possibility. Of all the or develop them via joint ventures tooptions, battery management appears share RD expenditure. E-components with the greatest differentiation potential None of the new technologies offer 23% 20% 19% 14% 12.5% 11.5% significant potential for differentiation, Battery management Battery cells packs although battery None of them E-motors Battery chemistry Power electronics management isSource: KPMG’s 2012 Global Auto Executive Survey considered the most likely. KPMG insights Be a master not a slave to technology OEMs are under immense pressure With new mobility concepts shifting from legislators and customers to profits downstream, value is improve powertrain efficiency, yet increasingly derived from car usage, so some of the new technologies they are OEMs need to consider technologies developing at great cost (for internal such as intelligent in-car telematics combustion engine, fuel cell, hybrid, systems to maintain revenue at this full electric, lightweight materials) may end of the value chain. In adopting new not be profitable for a decade – and technology, automakers cannot afford Mathieu Meyer possibly never gain sufficient scale to to lose their existing dominance, so Global Head of Automotive be commercially viable. strategic partnerships and other forms of cooperation will inevitably gain It is also unclear which components momentum. for e-vehicles present the greatest opportunity for differentiation. Rather To avoid disruption to manufacturing than trying to lead in every new and to achieve scale and high technology, OEMs should therefore utilization rates at low cost, be more selective, retaining and automakers must balance strengthening key competencies and standardization with flexibility. Flexible outsourcing those with no potential for vehicle platforms that can incorporate competitive advantage; a complicated a range of alternative powertrain decision that will reflect each technologies can help manage organization’s unique situation. ongoing complexity.© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  16. 16. 12 | KPMG’s Global Automotive Executive Survey 2012New technologyElectromobility is everywhere –except upon the roadsElectrified vehicles will not exceed 15 percent of annual global Chinesenew car registrations before 2025. And for the immediatefuture, hybrids will continue to be more popular than pure respondentsbattery-powered cars. Over time, fuel cell vehicles are seen believe that by 2025as a more promising prospect than battery-electrified cars, battery-electrifiedespecially in the BRICs. vehicles will be theAlthough there is no clear winner Respondents from the BRIC nations most popular newamong the various electrified believe fuel cell-powered vehicles willtechnologies, hybrids are expected to attract the most consumer demand, technology amongoutsell battery-powered cars severaltimes over in 13 years’ time. According with the exception of China, where pure battery-powered vehicles are customers.to the survey, full and plug-in hybrids expected to come out on top. Given theand fuel cell vehicles are likely to be in longer distances achievable with fuelgreatest demand, while battery cars cell-driven cars, it is some surprise thatwith range extenders (like the Opel none of the U.S. executives surveyedAmpera/Chevrolet Volt or the A1 E-Tron) consider fuel cell as an option forshould edge ahead of pure electric cars. consumers by 2025. Electric vehicle technology attracting the most customer demand by 2025 No clear winner among the 4% 15.5% 5% 16% 9% various electrified technologies. 15% 18% Surprisingly, BEVs 18% 15% 20% 17% 21% anticipated to lag 21% 20% 23% behind FCEVs in 21.5% 24% 2025. 17% All respondents Respondents Respondents from the TRIAD from the BRIC Full hybrids Range-extended electric vehicles (REEV) Plug-in hybrids Battery-electrified vehicles (BEV) Fuel cell electrical vehicles (FCEV) Mild/micro-hybridsNote: Percentage of respondents expecting the most customer demandSource: KPMG’s 2012 Global Auto Executive Survey© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  17. 17. KPMG’s Global Automotive Executive Survey 2012 | 13 Picking the winners With new technologies playing an ever greater role in the automotive value chain, OEMs face some complex and challenging choices. As they seek to keep ahead of the competition, a hefty with a Chinese partner) is vital to provide telematics and chunk of automakers’ RD budgets goes on reducing connectivity to meet the country’s unique cultural and energy consumption and emissions through more language needs. efficient powertrains and lightweight body materials. Only time will tell if OEMs have made the right choices, A sizeable proportion of these resources are geared particularly in the field of battery technology, where no towards hybrids, battery and fuel cell development, common standard has emerged. For example, there’s with the remainder dedicated to optimizing the internal plenty of uncertainty over what type of batteries will combustion engine (ICE). be supported by the government in the strategically The top manufacturers rigorously assess their own important Chinese market. competencies to determine whether to develop in- There is considerable confidence in the potential of house or via joint-ventures such as the global alliance fuel cells, whose longer driving range should enable between Daimler and Renault/Nissan, aimed at automakers to achieve a critical mass of sales by 2025. producing smaller three cylinder engines. Many intend An added advantage of fuel cells is the relative to remain master of their in-car connectivity, networking affordability of core materials (except for platinum) when with the digital community to access telematics and compared to batteries. However, both technologies entertainment services. Another sign of a global mindset require a substantial infrastructure investment to provide is the decision of some to source low-cost simulation safe hydrogen refueling facilities and easily available expertise from India. electrical recharging points. The growth of markets such as China presents a different type of challenge, as a local presence (probably© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  18. 18. 14 | KPMG’s Global Automotive Executive Survey 2012The anticipated success of different cell-powered cars is not matched bytechnologies reflects the relative levels investment levels – something thatof investment they will be receiving, these markets may have to address.with hybrids attracting far more In China, this mismatch is largely dueresources than either pure battery or to the 12th Five Year Plan, which mostlyfuel cell vehicles. In the BRIC nations, supports battery-electric mobility.however, expected demand for fuel Expected investment vs. demand for e-technologies Expected customer 67% 64% demand for fuel cells in the BRICs 52% 51% is not matched by an appropriate investment effort. 21% 21% 19% 19% 17% 16% 14% 15% 15% 9% X X Most demand Most investments Most demand Most investments TRIAD BRIC Fuel cell electrical vehicles Battery-electrified vehicles Hybrid fuel systems Others (e.g. LPG/LNG, ethanol)Source: KPMG’s 2012 Global Auto Executive Survey × No data available KPMG insights China looks to cleaner roads As one of the seven strategic industries and 400,000 charging poles in in China’s 12th Five Year Plan, clean 70 pilot cities. Components are also energy vehicles are set to receive high on the agenda as the People’s over US$15 billion of investment in Republic aims for full industrialisation a bid to have one million units on of e-vehicle production. the road by 2015. The world’s largest With foreign automakers eagerly automobile market is determined to awaiting certified Chinese e-mobility Andrew Thomson be a technology leader by improving standards, there should be Co-Head of Automotive efficiency of batteries, motors and opportunities for joint ventures KPMG in China control systems, with a strong focus and demand for specialized skills, on smaller e-vehicles. although the industry will be most China’s centralized economy enables likely dependent upon continued the rapid development of infrastructure, government subsidies and tax with plans for 2000 charging stations exemptions.© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.
  19. 19. KPMG’s Global Automotive Executive Survey 2012 | 15 KPMG insights How an OEM can fund all its upcoming development needs Many auto OEMs are working to get electric) across platforms is helping totally newly-designed products into control expenditure on new product the market quicker and more cost development. In addition, OEMs effectively to meet changing consumer are pushing Tier 1 and 2 suppliers to needs. Small, more efficient cars take a very active role in early design are a key focus for all OEMs, as is activities, to improve time-to-market the move to alternative propulsion and also to share development systems (engine and drive trains) risks. Again, this approach has been Doug Gates across all vehicle lines. To support very effective at helping control Principal, Advisory the development of these new overall product development costs. KPMG in the U.S. technologies, OEMs are simplifying Lastly, many OEMs are successfully the number of auto platforms and leveraging low-cost product design propulsion systems. A reduction in total outsourcing to further control vehicle models and standardization of expenditure and speed up the propulsion systems (gas, hybrid and development cycle.The East holds the key to e-mobilityAs the survey results confirm, units. China also has relatively highelectromobility still has a long way to expectations for e-mobility; a majority Between 9-14go before it can be regarded as a truereplacement for the traditional ICE. anticipate sales to be 11-15 percent of the total, which is higher than the U.S., million newAlmost two-thirds of executives taking Western Europe and the other BRIC electrical vehiclespart believe that e-vehicles will not nations.exceed 15 percent of annual global sales will be registered And while these figures are relativelyin 15 years’ time. small percentage-wise they still in TRIAD and BRICThese figures differ considerablyby country and region. Japanese represent a huge opportunity in terms of actual vehicle numbers. With the markets in 2026.respondents are by far the most Chinese market projected to reachoptimistic, with almost half predicting 37 million in annual sales by 2026, .5e-vehicle sales to gain a 25 percent e-cars could total between 4-6 million,share of domestic new car registrations compared to around 1.5 million inin 2026, for a total of 1.4 million the U.S.© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. All rights reserved.

×