KPMG survey: China to host six of top 10 carmakers by 2035
A KPMG survey of 775 auto executives forecasts that by 2035 six of the world's 10 largest carmakers will be Chinese. Software and digital technology are expected to overtake traditional engineering as the key competitive differentiator, while most companies need over a year to deploy new AI capabili
A survey by KPMG of 775 senior automotive executives published on Wednesday shows the industry expects a major shift in global leadership by 2035, with China set to host six of the world's top 10 carmakers, according to 48 per cent of respondents.
More than half of those surveyed, 51 per cent, said software and digital technology would overtake traditional vehicle engineering as the main source of competitive differentiation in the industry by 2035. The findings point to a transformation driven by advances in software, artificial intelligence, batteries and digital innovation.
Despite the strategic importance placed on digital capabilities, the survey found that 92 per cent of companies require at least 12 months to deploy a new AI, software or digital capability across their entire organisation. More than a third of those companies need over two years to complete such a rollout.
Continuous transformation has become the industry's operating model, according to more than half of the executives surveyed, as companies grapple with technological change, geopolitical uncertainty and market disruptions.
Investment in AI and emerging technologies is strongest in the Asia-Pacific region, where 57 per cent of respondents reported significant spending. That compares with 52 per cent in Europe and 48 per cent in the Americas.
Value creation in the automotive sector is extending beyond vehicle sales, the survey found, with companies looking to expand into adjacent sectors such as energy storage, defence and financial services.