Consulting firm KPMG has released its 2021 Global Automotive Executive Survey. More than 1,100 executives in 31 countries participated offering their insights on the major forces shaping the industry, from supply chain issues and powertrains to changing consumer behavior and new technology entrants covering the next 5 to 10 years.
Among the big trends observed in the Survey is a shift to electric vehicles (EVs). KPMG notes that electrification is likely to gather pace as a wide range of news EVs are just beginning to hit the market. According to the consulting firm, “ Every facet of the automotive industry, from product development to manufacturing and distribution, is likely to undergo profound changes brought on by the convergence of the automotive and technology sectors.”
Although the survey covers a range of topics, including the outlook for profitability (only 38 percent of respondents are concerned about the outlook for profits) and concerns about supply chains, the future of powertrains is of particular interest.
Here are some takeaways from the survey:
- Executives expect the market share of EVs will grow dramatically by 2030, but there is a very wide range of views and no consensus on the approximate share they will capture
- Their expectations are based on the view that EVs will reach cost parity with ICE vehicles by 2030
- They believe EVs can be widely adopted without government subsidies, but the majority still supports such programs
- The survey finds EV adoption will depend partly on significant investments in DC fast-charging infrastructure, as 77 percent of executives expect consumers to require charge times under 30 minutes when traveling. The vast majority of charging stations in service today takes more than three hours
- The survey found that respondents believe that 52 percent of the market in the US, China, and Japan will be made up of EVs (excluding hybrids) by 2030
- 95% of those responding to KPMG said they had some level of concern about supply continuity for lithium and other battery components
The full KPMG 2021 Global Automotive Executive Survey can be downloaded here.
Kevin Clemens is a Senior Editor with Battery Technology.