Half of the respondents to this year’s KPMG Global Automotive Executive Survey say that battery electric vehicles (BEVs) will be the top trend in the industry until 2025.
But while BEVs have overtaken connectivity and digitization as top trend, they will ultimately fail, according to 62 per cent of surveyed executives.
What’s led respondents to believe that seems to be the issue of setting up a user-friendly charging infrastructure. In contrast, 78 per cent of those surveyed think BEVs will be overshadowed by fuel cell electric vehicles.
Survey results also indicate that autonomous driving will revolutionize how we use cars, and make purchasing criteria of the past irrelevant.
Other findings show that diesel is set for rapid decline, with 50 per cent of respondents believing that it will be the first traditional powertrain technology to vanish from the manufacturers’ portfolios.
Over the next five years, 53 per cent of respondents plan to invest in plug-in hybrids, and 52 per cent in internal combustion engines and full hybrids.
And in the future, the digital ecosystem will generate higher revenues than the hardware of the car itself, according to 85 per cent.
“Connectivity and digitization are making our driving experience similar to what we expect in all other aspects of life,” says Peter Hatges, national sector leader, automotive for KPMG in Canada. “It’s a lot more convenient for consumers, significantly improving our time in the car. It has also been a catalyst in the financial success being enjoyed by the auto industry. New cars are making older models almost obsolete.”