Dim outlook on EVs, but trend accepted: KPMG

Most global auto executives (62%) have a dim view of EVs, although half say battery electric vehicles will be the key trend moving towards 2025.

And for dealerships to survive they must become “experience hubs” where customers immerse themselves and sample products similar to Apple stores.

Those are among findings in the newly released 18th KPMG global automotive executive survey 2017.

The online survey was, however, held during September and October 2016. About 953 executives from 42 countries responded, nearly a third of them from Western and Eastern Europe.

Respondents say all-electric vehicle success depends on infrastructure and application, and that fuel cell vehicles could be the break-through technology and become more popular due to charging challenges.

They mainly believe a changing regulatory environment – particularly around emissions, and societal pressure, will dictate future trends.

Yet 76% of the executive respondents believe the internal combustion engine (ICE) will continue as the dominant global drivetrain for many years.

“The auto industry is lost in translation between evolutionary, revolutionary and disruptive key trends that all need to be managed at the same time,” KPMG says in its executive summary.

It says auto executives are torn between ICE being still technologically relevant but socially unacceptable.

The summary also says it’s unclear how the future value change setup and business models will look.

“OEMs have to decide whether they want to be a contract manufacturer or a customer-centric service provider,” according to a respondent.

Most respondents in the consumer category want hybrid-electric vehicles (36%), followed by ICE vehicles (21%).

“Over the next 5 years, 53% of executives are planning to highly invest in plug-in hybrids and 52% in ICEs and full hybrids,” KPMG says.

Political and economic factors could be a big influence, the report adds.

And autonomous driving will “redefine the utility of vehicles and is the enabler for service and data-driven business models”.

About 81% of executives believe consumers will be willing to share consumption data, while 58% of consumers say they would do so.

Data security is ranked a priority.

The 56-page report is available HERE