Digital Auto Care Factbook 2016 - 7

RECAP FROM AFTERMARKET DYNAMICS (AAPEX)
Aftermarket Dynamics and the Road Ahead: 2015
Introduction
The following four slides are highlights from a report published by K P M G International titled "Global Automotive Executive
Survey 2014". Results from their most recent survey are presented in a 60-page report which is posted on their website
http://www.kpmg.com/.
KPMG International is a global research firm who conducts annual surveys of top executives in the Automotive Industry.

Slide #1: Key Automotive Trends up to 2025
According to their report, the rising economic power of Emerging Markets
remains the overriding force for growth over the next decade. As the industry
becomes more global, automakers are striving to use flexible, modular
platforms, to adapt to changing customer preferences and free up resources
to invest in powertrain technology to satisfy increasingly tough environmental
regulations.
Respondents to this year's survey feel that emerging nations offer the best
hope for expansion. Eighty-five (85 percent) percent of the executives surveyed
say that growth in up-and coming nations is the biggest single industry trend
through 2025.

Slide #2: Global Forces Shaping the Sector
Automotive companies are adjusting to a fast-changing competitive landscape.
CO2 emissions are becoming a major concern, due to increasingly tough
regulations and consumer concern over pollution. Such environmental factors,
combined with rising fuel prices, mean that Internal Combustion Engine
downsizing is becoming a higher priority, as electric battery technology has so
far failed to produce a cost-effective alternative.
Managing and intelligent use of big data, referred to as "Digitalization",
has become virtually an industry in itself. Vehicles are becoming ever more
dependent upon software, while the journey to greater connectivity has only just
begun, with self-driving cars becoming a probability rather than just a dream.

Slide #3: Self-driving Vehicles on Public Roads
As more and more software becomes embedded in vehicles, the self-driving car
becomes a real possibility. However, most of the respondents feel that it will be
20-plus years before driverless automobiles are a common sight on our roads.
Much has been written about the potential for self-driving cars to change not
just the individual driving experience, but the way cars interact with each other.
In 2014, the world's automotive leaders do not yet see such vehicles as a major
area of focus for their businesses.
Forty percent (40 percent) of those surveyed say it will take at least 20 years
before they are in common
use and almost another third
think such cars will never
succeed.

Slide #4: Transforming the Dealer Model
Although the future shape of the dealer sector is still uncertain, almost half
of the respondents think the conventional model is inappropriate, with online
retailing and multi-brand providers set to rise significantly.
The good news for today's automakers and dealers is that brand still matters.
Eighty-four percent (84 percent) of those surveyed say that brand is extremely
or very important to the customer purchase decision.
Seventy-eight (78 percent) of the respondents feel competitive financing influences the consumer purchase decision suggesting an
opportunity for establishing global financing.
2016 Digital Auto Care Factbook Copyright © 2015 Auto Care Association

http://www.kpmg.com/

Digital Auto Care Factbook 2016

Table of Contents for the Digital Edition of Digital Auto Care Factbook 2016