36 pc automotive executives feel their company is entering into deep transformation: Report
The automotive industry is undergoing massive changes, and executives are feeling the heat. A new KPMG report reveals that 36% of leaders in the sector believe their companies are diving into a deep transformation. This includes big shifts in business models, products, and operations that could last for the next three years and more.
Many automakers are betting big on tech to stay ahead. For instance, 86% of original equipment manufacturers (OEMs) are pouring resources into artificial intelligence (AI) to revamp their operations. But here’s the catch: only 20% of executives think they’re ready to handle the disruptions AI will bring to the automotive industry.
Customer satisfaction is another key battleground. Among top-performing companies, 48% say it’s essential for long-term profitability. That’s a stark contrast to just 10% of other respondents. Leading firms are focusing on hyper-personalized, data-driven experiences to build loyalty and keep customers coming back.
Supply chain issues are also making waves. The report shows that 94% of companies well-prepared for disruptions are beating their profit targets. In comparison, only 45% of those less prepared are hitting the mark. Tools like AI, digital control towers, and software-defined vehicles are helping reshape supply chains, but experts stress the need for strong governance to get the most out of them.
“The automotive industry isn’t just evolving—it’s getting a complete overhaul,” said Andreas Ries, Global Head of Automotive at KPMG International. “Emerging technologies, changing consumer demands, and global tensions are rewriting the playbook. To compete, companies need bold strategies. Our five-Ts framework isn’t a fix for problems—it’s a guide to lead the pack.”
In India, this transformation spells opportunity. Jeffry Jacob, Partner and National Sector Leader for Automotive at KPMG in India, explained, “The five Ts from this study offer a straightforward path to success. Winners will flip disruptions into advantages. For India, it’s a rare chance to tap our digital skills and manufacturing power to claim a top spot in global automotive leadership.”
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