Chinese automakers could account for six of the world’s 10 largest car companies by 2035, according to a KPMG survey of 775 senior automotive executives worldwide. The finding reflects expectations of a major shift in the industry’s global pecking order, as Chinese companies build capabilities in electric vehicles, batteries and digital technology. It is a forecast from industry leaders, not a guarantee of how the market will develop.
The survey also suggests that competitive advantage is moving beyond vehicle engineering. Some 51% of respondents expect software and digital technology to be the industry’s main source of differentiation over the next decade. Yet putting those capabilities into practice may take time: 92% said their companies would need at least 12 months to roll out new AI, software or digital capabilities across the business, while more than one-third anticipated a process lasting over two years.
Investment levels in AI and emerging technologies were reported as high by 57% of executives in Asia-Pacific, compared with 52% in Europe and 48% in the Americas. The survey further points to automakers seeking income beyond vehicle sales, including opportunities in energy storage, financial services and defense. Together, the results depict an industry facing both a possible rise in Chinese manufacturers and pressure to adapt its technology, operations and business models.