kpmg’s global automotive executive survey 2015

40
technological fit KPMG’s Global Automotive Executive Survey Who is fit and ready to harvest? kpmg.com/GAES2015 How do we cut through complexity? View the interactive version of this survey online and filter the results based on your own preferences 2015

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technological fit

KPMGrsquos Global Automotive Executive Survey

Who is fit and ready to harvest

kpmgcomGAES2015

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences

2015

2 | KPMGrsquos Global Automotive Executive Survey 2015

Acknowledgements

The Global Automotive Executive Survey is KPMG Internationalrsquos annual assessment of the current state and future prospects of the worldwide automotive industry In this yearrsquos survey 200 senior executives from the worldrsquos leading automotive companies were interviewed including automakers suppliers dealers financial services providers rental companies and mobility solution providers The responses were very insightful and we would like to thank all those who participated for giving us their valuable time Special thanks to Moritz Pawelke and his team for their efforts

KPMGrsquos Global Automotive Executive Survey 2015

As this yearrsquos survey findings demonstrate the industry seems to be positioned halfway between these two imperatives On the one hand increasingly strict regulatory standards call for a strong focus on powertrain optimization rationalization and standardization On the other increasingly tech-savvy customers are helping to create a completely new mobility culture

Tomorrowrsquos consumers will not only expect but demand new and innovative services and mobile apps that plug seamlessly into ubiquitously connected solutions To stay ahead traditional automotive players may need to reinvent their business models and ask themselves two pressing questions ldquohow do I become a high value service brand while making the most of my strong product and engineering heritagerdquo and secondly ldquohow do I think about my brand from a consumer perspective to attract the new generation of lsquodigital nativesrsquordquo

It is not just the automotive industry that is changing so has our survey

now in its 16th consecutive year We have placed the findings online and made them interactive enabling you to not only digest our general conclusions but to also draw your own inferences for your specific area of interest all of which should help you cut through complexity and extract the maximum value for your business

I personally invite you to get involved and access our online version of the survey at kpmgcomGAES2015

Enjoy the read

ForewordIn coming years the automotive sector will need to achieve a fine balance between its traditional product- and technology-driven past and its potentially ubiquitously connected consumer lifecycle-centric and service-driven future

Dieter Becker Global Head of Automotive KPMG International

Contents

Executive summary

About the survey

Mobility culture What is driving consumer demand

Technological fit Are companies betting on the right technologies

16

Business model readiness Is the industry set for an unstable mobility eco-system

26

Prepared to harvest Who is best positioned for sustainable growth

KPMG Global Automotive thought leadership

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 3

4

6

8

34

38

Executive summary Key trends to 2025 Vehicle segment

preferences Investment priorities to 2020

E-car market penetration to 2025

Mobilityculture

Auto executiveslsquo views tend to refl ect

concerns over current commercial

challenges suggesting a lack of consensus

over the shape of the future mobility

eco-system

Auto execs are caught between regulations that create technological challenges and satisfying the target group of tech-savvy mobility consumers that are never offl ine

KPMG viewpoint

Many innovative key trends are lower on executivesrsquo agendas up to 2025

The majority of the executives still feel that growth of emerging markets is the number one key trend

Only a minority of respondents consider alternative powertrain technologies mobility services and vehicle connectivity as extremely important key trends until 2025

Please see p8-9

Purchasing criteria to 2020

Purchasing choices over the next fi ve years are not yet driven by innovative concepts and online services

Auto executives believe consumers are still fi xated on traditional product issues with fuel effi ciency rated clearly as number one closely followed by safety and comfort

Compared to the 2014 survey executives see a heavily increased emphasis on enhanced vehicle lifespan most likely due to the burst of product recalls in recent years

Please see p10-11

The small and basic car segment is expected to have a high growth potential in established and emerging markets over the next fi ve years

Executives from mature markets predict decreasing sales potential for the large car segment up to 2020 with a more positive view of the basic and small car segment

BRIC market respondents envisage tremendous growth potential for all car size segments in the next fi ve years particularly small and basic cars

Please see p12-13

Vehicle ownership versus usage

Vehicle ownership for all age groups is considered important up to 2020

Most respondents believe vehicle ownership will still be important for under-25s while those aged between 25-50 are expected to be even more reliant on their own cars for personal mobility

Mobility services are forecast to be an important source of profit in fi ve to 10 years in both established and emerging markets

Please see p14-15

Technologicalfi t

According to this yearrsquos survey

the optimization of traditional

fossil fuel-based propulsion

technologies still dominates the technological

roadmap

Downsizing is still the number one powertrain investment area over the next fi ve years

However since the 2014 survey auto execs from mature TRIAD markets have become relatively less focused on this area than their BRIC counterparts

The number two investment priority for both TRIAD and BRIC execs is fuel cell vehicles replacing pure battery electric technology

Please see p16-17

E-car technologytrends to 2020

Plug-in hybrids are set to attract the highest demand of all electrifi ed propulsion technologies

Although still rated as the most important e-technology plug-in hybridsrsquo popularity has diminished year-on-year

Battery electric vehicles remain in number two position However in contrast to prior years a higher proportion of respondents believe demand for fuel cell electrical vehicles will increase over the next fi ve years

Please see p18-19

High e-car market share forecasts appear contrary to investment priorities

The majority of auto execs from Western Europe and China believe that the share of electrified vehicles (among overall new car registrations) will be between 11-15 percent Respondents from North America are even more optimistic with most foreseeing a share of between 16-20 percent in 10 years

Please see p20-21

Connectivity The next big thing

The notion of self-driving cars as the last evolutionary step of connectivity seems to be more distant than media attention suggests

Auto execs from mature Asian countries like Japan and Korea are slightly more optimistic about autonomous driving believing there will be a breakthrough in the next 20 years Respondents from Western Europe North America and China are more hesitant

Please see p22-23

What is driving consumer demand

Are companies betting on the right technologies

4 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Business model disruption ahead

Readiness for a new mobility eco-system

Strategiesto survive

Race for market share until 2020

Auto companies should choose the core competencies around which to center their future business model Will success come to product-driven hardware manufacturers or brand-driven integrated mobility solutions providers

Business model

readiness Executives are very

optimistic that traditional automotive players can cope with

an increasingly unstable mobility eco-system in the

short term

Future automotive business models should view the customersrsquo wider lives beyond their role as drivers building up a personal relationship to increase loyalty in order to stay on top of the longer-term customer interface

KPMG viewpoint

No major business model change or disruptive event is expected over the next fi ve years

Most auto execs believe that original equipment manufacturers (OEMs) will continue to own the customer relationship up to 2020

Please see p26-27

Business and investment strategies should remain conservative until 2020

Organic growth is expected to be the number one strategy for future success with two-thirds of auto execs rating this factor as extremely important

Since 2014 an increasing number of respondents feel it will be necessary to diversify and expand the value chain and cooperate with players from converging industries to cope with a mobility eco-system that is becoming more and more unstable

Please see p28-29

Traditional automotive OEM brands should matter most in 10 yearsrsquo time

Auto execs believe it is extremely likely that automotive premium and mass market brands will dominate over the next decade followed by pure e-car manufacturer brands

Brands from the ICT sector are predicted to be more important than traditional Tier 1 supplier brands

Global players like Daimler BMW and GM are considered to be best prepared closely followed by Volkswagen Toyota and Ford

In the executivesrsquo eyes newcomers like Tesla still have a huge gap to close to achieve the awareness and reach of traditional OEM brands

Please see p30-31

OEMsrsquo key survival strategy is to achieve and maintain global reach

For globally established OEMs such as BMW Volkswagen and Toyota remaining independent is the top priority

OEMs with limited global reach mainly from China and mature Asian countries are most likely to merge with others in order to survive

Please see p32-33

Prepared toharvest

Executives feel there will be no major shift

of power between OEMs until 2020

In the medium term traditional OEMs are forecast to maintain their dominance However they should prepare for a more disruptive future

Auto execs are most optimistic that the Hyundai group will increase its global market share

Volkswagen is considered to have far greater potential than its closest competitors Toyota and GM

When it comes to Chinese OEMs respondents rate Chery as having the best chance of increasing market share up to 2020

Tata another emerging OEM is rated very positively and is expected to grow its market share

Please see p34-37KPMG viewpoint

Is the industry set for an unstable mobility eco-system

Who is best positioned for sustainable growth

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 5

200 senior executive respondents 2 Czech Republic

TRIAD MARKETS

BRIC MARKETS

FOLLOWER MARKETS

USA Canada Mexico

Germany Spain France UK Italy Belgium Netherlands Sweden Norway Switzerland

Japan South Korea

Brazil

Russia

India

SA

RoW

EE

IampA

Argentina Colombia

Australia Egypt South Africa

Czech Republic Hungary Poland Romania Turkey

About the survey

20 USA

1 Canada

4 Mexico

2 Colombia

20 Brazil

4 Argentina

15 Russia

8 South Korea

16 Japan

25 China

15 India

2 Indonesia

2 Thailand

4 Australia

1 Belgium

11 Norway 2 Romania

5 Turkey

1 Netherlands

1616 nyGermany

8 UK

1 Spain

6 Italy

8 France

1 Switzerland

2 Egypt

2 South Africa

2 Hungary 1 Sweden 3 Poland

N

NA

WE

MA

SA

EE

IampA

CN China

47 of survey respondents from TRIAD markets 38 of survey respondents from BRIC markets

Thailand Indonesia

16 of survey respondents from follower markets

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

6 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

DEMOGRAPHICS 200 senior executives ndash a clear picture of who they are and where they are from About the survey

CEOPresident

C-level Executive

Business Unit Head

Respondents by job title

5 2 7

45 Business Unit Manager

Head of Department

42

Respondents by regional cluster

Western Europe (WE) 44 (22)

South America (SA) 26 (13)

Mature Asia (MA) 24 (12)

North America (NA) 25 (13)

India amp ASEAN (IampA) 19 (10)

Eastern Europe (EE) 29 (15) China (CN)

25 (13)

Rest of World (RoW) 8 (4)

Respondents by company type Survey respondents

Vehicle (60)30 (60)Manufacturer

Supplier 40 (80)

Dealer 10

10

10

(20)

Financial Services Provider (20)

Mobility (20)Service Provider

Respondents by company revenue

18

10

39 33

2

Over $10 billion

$1 billion - $10 billion

$500 million - $1 billion

Two hundred automotive executives participated over half of whom are business unit heads or higher The respondents come from all parts of the automotive value chain including vehicle manufacturers Tier 1 2 and 3 suppliers dealers financial services providers and mobility service providers (including auto rental and car sharing companies)

Thirty-seven percent of the executives are based across Western and Eastern Europe with 13 percent in North America 13 percent in South America and 13 percent in China Over two-thirds of all participants represent companies with annual revenues greater than US$1 billion Nearly 40 percent of all respondents are from companies with an annual revenue of more than US$10 billion

The respondent interviews which were conducted by phone took place in July and August 2014

To find out more details about this yearrsquos survey respondents

please access the interactive online version of this survey on kpmgcom GAES2015

$100 million - $500 million

Less than $100 million

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 7

8 | KPMGrsquos Global Automotive Executive Survey 2015

The winds of change are sweeping through mobility culture withgrowing demand for new services from evermore sophisticatedcustomers ndash not just in mature markets but around the world

What is driving consumer demand

Mobility culture

Against this backdrop auto executives appear to be focused on traditional concerns such as optimization of fuel-driven combustion engines and cost efficiency programs trusting that emerging markets will be the main growth drivers for a long time to come

This mindset could leave the main players highly vulnerable to new competitors eager to attract the customer of tomorrow by lsquoowningrsquo innovative concepts like mobility services and vehicle connectivity technologies Only time will tell if the respondentsrsquo views on a number of issues prove to be accurate

The survey participants believe that customersrsquo key priority is fuel efficiency which is in line with their expectation that sales for small and basic models will be particularly strong and although car ownership is predicted to remain high across all age groups mobility services such as car sharing are expected to see profitable growth within the next decade

KEY TRENDS TO 2025 Importance of key trends for the automotive industry Mobility culture

Innovative long-term concepts are not high on executivesrsquo agenda

The auto executivesrsquo agenda is dominated

Survey results

2015

56

2014

52

2013

43

2015

49

2014

40

2013

36

48

2015

42

2014

2013

na

36

2015

2014

26

2013

na

2015

18

18

20

14

41

2013

2015

18

2014

19

13

2013

16

2015

14

2014

20

2013

16

2015

18

20

14

16

2013

920

15

12

2014

38

2013

2015

8

13

2014

18

20

13

320

15

2014

5

2013

na

Market Downsizing Increasing use Rationalization Fuel cell OEM captive Innovative Mobility-as-a- Battery electric Connected car Self driving growth in and of platforms of production electric fi nancing urban vehicle service mobility technologies cars emerging optimization and in Europe mobility and leasing design Autonomous markets of the internal standardization and shifting of concepts cars

combustion of modules the production engine (ICE) to emerging

markets

by traditional trends such as growth in emerging markets optimizing the internal combustion engine standardized platforms and rationalized production

Newer industry-changing developments such as self-driving cars connectivity urban vehicle design and mobility services are still considered as relatively less important

KPMG viewpoint

The survey results show that auto players are adapting to regulatory restrictions on CO

2

emissions and are aware of the signifi cant impact of cost pressures and portfolio shifts

However in the face of growing environmental pressures it is surprising that battery electric mobility and fuel cell electric mobility have signifi cantly decreased in importance since the corresponding 2013 survey

The respondents may be underestimating the effect on their business models of changing mobility needs A majority seem to underplay the importance of connected car technologies and automated driving even though these developments are at an advanced stage and receiving plenty of industry and media attention

2 5 8 10 3 6 9 11 1 4 7

Note of respondents rating a key trend as extremely important Na ndash answer not included in respective year Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 9

KPMG insight

Concerns over vehicle quality have risen following several high-profi le product recalls with more and more customers now seeking vehicles with longer lifespans OEMs have to maintain a careful balance between product quality and cost optimization

The intense cost pressures on suppliers in recent years combined with the increased use of platform strategies have raised the risk of quality problems

Markets of all levels of maturity are seeing growing demand for state-of the-art technology in vehicles The relatively low priority assigned to connectivity does not resonate with the growing consumer expectation of ubiquitous access to mobile online services

The high emphasis on fuel effi ciency and enhanced vehicle lifespan shows the rising prevalence of the idea of total cost of ownership (TCO) for private consumers

Our respondents believe that consumers still have a strong desire

for comfort which is slightly at odds with the quest for better mileage as more energy is needed to power the associated technology In building more effi cient vehicles automakers will have to focus not just on the powertrain but also on the communications infrastructure

A further consequence of connected driving is concern over safety as travelers cede control of the vehicle

Finally vehicle styling and exterior has risen sharply in importance between 2013 and 2015 Regardless of what is on the inside customers still want to buy from trusted brands that reflect their own self-image

Understanding what consumers want

Gary Silberg The Americas Head of Automotive KPMG in the US

10 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

67 66 68

PRODUCT ISSUES Importance of vehicle features to consumer purchase decisions until 2020 Mobility culture

Purchasing choices not yet driven by innovative concepts and online services

1 2 3 4 5

Survey results

Fuel effi ciency Enhanced vehicle lifespan

53 45 19

2015 2014 2013 2015 2014 2013

6 7

Vehicle stylingexterior Plug-in solutions for navigation speech

recognition amp mobile internet devices (eg iPhone Blackberry)

40 34 23

2015 2014 2013

2038 39

2015 2014 2013

Safety innovation

52 48 46

2015 2014 2013

8

Vehicle-bound internet connectivity amp built-in technologies such as navigation speech

recognition etc

24 26 17

2015 2014 2013

Ergonomics amp comfort

49 36 47

2015 2014 2013

9

Telematicspersonal assistance services

19 16 11

2015 2014 2013

Environmental friendliness

41 38 35

2015 2014 2013

10

Use of alternative fuel technologies such as fuel

cell electric power bioshyfuels solar power etc

18 15 21

2015 2014 2013

Auto executives believe that consumers are still fixated on traditional product issues like fuel efficiency safety and comfort

One factor that has leapt in importance is enhanced vehicle lifespan which was ranked just eighth in 2013 but is now the second most important factor infl uencing the buying decision

Although both rank relatively low on consumersrsquo wish lists there is still a preference for plug-in rather than vehicle-bound internet connectivity solutions

The use of alternative fuel technologies remains a lower priority suggesting strongly that like last yearrsquos survey the consumer purchase decision is driven more by the wallet than the conscience

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Note of respondents rating a product issue as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 11

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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ITA 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 JPN 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ltFEFF004e006100750064006f006b0069007400650020016100690075006f007300200070006100720061006d006500740072007500730020006e006f0072011700640061006d00690020006b0075007200740069002000410064006f00620065002000500044004600200064006f006b0075006d0065006e007400750073002c0020006b00750072006900650020006c0061006200690061007500730069006100690020007000720069007400610069006b00790074006900200072006f006400790074006900200065006b00720061006e0065002c00200065006c002e002000700061016100740075006900200061007200200069006e007400650072006e0065007400750069002e0020002000530075006b0075007200740069002000500044004600200064006f006b0075006d0065006e007400610069002000670061006c006900200062016b007400690020006100740069006400610072006f006d00690020004100630072006f006200610074002000690072002000410064006f00620065002000520065006100640065007200200036002e0030002000610072002000760117006c00650073006e0117006d00690073002000760065007200730069006a006f006d00690073002egt LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed 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2 | KPMGrsquos Global Automotive Executive Survey 2015

Acknowledgements

The Global Automotive Executive Survey is KPMG Internationalrsquos annual assessment of the current state and future prospects of the worldwide automotive industry In this yearrsquos survey 200 senior executives from the worldrsquos leading automotive companies were interviewed including automakers suppliers dealers financial services providers rental companies and mobility solution providers The responses were very insightful and we would like to thank all those who participated for giving us their valuable time Special thanks to Moritz Pawelke and his team for their efforts

KPMGrsquos Global Automotive Executive Survey 2015

As this yearrsquos survey findings demonstrate the industry seems to be positioned halfway between these two imperatives On the one hand increasingly strict regulatory standards call for a strong focus on powertrain optimization rationalization and standardization On the other increasingly tech-savvy customers are helping to create a completely new mobility culture

Tomorrowrsquos consumers will not only expect but demand new and innovative services and mobile apps that plug seamlessly into ubiquitously connected solutions To stay ahead traditional automotive players may need to reinvent their business models and ask themselves two pressing questions ldquohow do I become a high value service brand while making the most of my strong product and engineering heritagerdquo and secondly ldquohow do I think about my brand from a consumer perspective to attract the new generation of lsquodigital nativesrsquordquo

It is not just the automotive industry that is changing so has our survey

now in its 16th consecutive year We have placed the findings online and made them interactive enabling you to not only digest our general conclusions but to also draw your own inferences for your specific area of interest all of which should help you cut through complexity and extract the maximum value for your business

I personally invite you to get involved and access our online version of the survey at kpmgcomGAES2015

Enjoy the read

ForewordIn coming years the automotive sector will need to achieve a fine balance between its traditional product- and technology-driven past and its potentially ubiquitously connected consumer lifecycle-centric and service-driven future

Dieter Becker Global Head of Automotive KPMG International

Contents

Executive summary

About the survey

Mobility culture What is driving consumer demand

Technological fit Are companies betting on the right technologies

16

Business model readiness Is the industry set for an unstable mobility eco-system

26

Prepared to harvest Who is best positioned for sustainable growth

KPMG Global Automotive thought leadership

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 3

4

6

8

34

38

Executive summary Key trends to 2025 Vehicle segment

preferences Investment priorities to 2020

E-car market penetration to 2025

Mobilityculture

Auto executiveslsquo views tend to refl ect

concerns over current commercial

challenges suggesting a lack of consensus

over the shape of the future mobility

eco-system

Auto execs are caught between regulations that create technological challenges and satisfying the target group of tech-savvy mobility consumers that are never offl ine

KPMG viewpoint

Many innovative key trends are lower on executivesrsquo agendas up to 2025

The majority of the executives still feel that growth of emerging markets is the number one key trend

Only a minority of respondents consider alternative powertrain technologies mobility services and vehicle connectivity as extremely important key trends until 2025

Please see p8-9

Purchasing criteria to 2020

Purchasing choices over the next fi ve years are not yet driven by innovative concepts and online services

Auto executives believe consumers are still fi xated on traditional product issues with fuel effi ciency rated clearly as number one closely followed by safety and comfort

Compared to the 2014 survey executives see a heavily increased emphasis on enhanced vehicle lifespan most likely due to the burst of product recalls in recent years

Please see p10-11

The small and basic car segment is expected to have a high growth potential in established and emerging markets over the next fi ve years

Executives from mature markets predict decreasing sales potential for the large car segment up to 2020 with a more positive view of the basic and small car segment

BRIC market respondents envisage tremendous growth potential for all car size segments in the next fi ve years particularly small and basic cars

Please see p12-13

Vehicle ownership versus usage

Vehicle ownership for all age groups is considered important up to 2020

Most respondents believe vehicle ownership will still be important for under-25s while those aged between 25-50 are expected to be even more reliant on their own cars for personal mobility

Mobility services are forecast to be an important source of profit in fi ve to 10 years in both established and emerging markets

Please see p14-15

Technologicalfi t

According to this yearrsquos survey

the optimization of traditional

fossil fuel-based propulsion

technologies still dominates the technological

roadmap

Downsizing is still the number one powertrain investment area over the next fi ve years

However since the 2014 survey auto execs from mature TRIAD markets have become relatively less focused on this area than their BRIC counterparts

The number two investment priority for both TRIAD and BRIC execs is fuel cell vehicles replacing pure battery electric technology

Please see p16-17

E-car technologytrends to 2020

Plug-in hybrids are set to attract the highest demand of all electrifi ed propulsion technologies

Although still rated as the most important e-technology plug-in hybridsrsquo popularity has diminished year-on-year

Battery electric vehicles remain in number two position However in contrast to prior years a higher proportion of respondents believe demand for fuel cell electrical vehicles will increase over the next fi ve years

Please see p18-19

High e-car market share forecasts appear contrary to investment priorities

The majority of auto execs from Western Europe and China believe that the share of electrified vehicles (among overall new car registrations) will be between 11-15 percent Respondents from North America are even more optimistic with most foreseeing a share of between 16-20 percent in 10 years

Please see p20-21

Connectivity The next big thing

The notion of self-driving cars as the last evolutionary step of connectivity seems to be more distant than media attention suggests

Auto execs from mature Asian countries like Japan and Korea are slightly more optimistic about autonomous driving believing there will be a breakthrough in the next 20 years Respondents from Western Europe North America and China are more hesitant

Please see p22-23

What is driving consumer demand

Are companies betting on the right technologies

4 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Business model disruption ahead

Readiness for a new mobility eco-system

Strategiesto survive

Race for market share until 2020

Auto companies should choose the core competencies around which to center their future business model Will success come to product-driven hardware manufacturers or brand-driven integrated mobility solutions providers

Business model

readiness Executives are very

optimistic that traditional automotive players can cope with

an increasingly unstable mobility eco-system in the

short term

Future automotive business models should view the customersrsquo wider lives beyond their role as drivers building up a personal relationship to increase loyalty in order to stay on top of the longer-term customer interface

KPMG viewpoint

No major business model change or disruptive event is expected over the next fi ve years

Most auto execs believe that original equipment manufacturers (OEMs) will continue to own the customer relationship up to 2020

Please see p26-27

Business and investment strategies should remain conservative until 2020

Organic growth is expected to be the number one strategy for future success with two-thirds of auto execs rating this factor as extremely important

Since 2014 an increasing number of respondents feel it will be necessary to diversify and expand the value chain and cooperate with players from converging industries to cope with a mobility eco-system that is becoming more and more unstable

Please see p28-29

Traditional automotive OEM brands should matter most in 10 yearsrsquo time

Auto execs believe it is extremely likely that automotive premium and mass market brands will dominate over the next decade followed by pure e-car manufacturer brands

Brands from the ICT sector are predicted to be more important than traditional Tier 1 supplier brands

Global players like Daimler BMW and GM are considered to be best prepared closely followed by Volkswagen Toyota and Ford

In the executivesrsquo eyes newcomers like Tesla still have a huge gap to close to achieve the awareness and reach of traditional OEM brands

Please see p30-31

OEMsrsquo key survival strategy is to achieve and maintain global reach

For globally established OEMs such as BMW Volkswagen and Toyota remaining independent is the top priority

OEMs with limited global reach mainly from China and mature Asian countries are most likely to merge with others in order to survive

Please see p32-33

Prepared toharvest

Executives feel there will be no major shift

of power between OEMs until 2020

In the medium term traditional OEMs are forecast to maintain their dominance However they should prepare for a more disruptive future

Auto execs are most optimistic that the Hyundai group will increase its global market share

Volkswagen is considered to have far greater potential than its closest competitors Toyota and GM

When it comes to Chinese OEMs respondents rate Chery as having the best chance of increasing market share up to 2020

Tata another emerging OEM is rated very positively and is expected to grow its market share

Please see p34-37KPMG viewpoint

Is the industry set for an unstable mobility eco-system

Who is best positioned for sustainable growth

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 5

200 senior executive respondents 2 Czech Republic

TRIAD MARKETS

BRIC MARKETS

FOLLOWER MARKETS

USA Canada Mexico

Germany Spain France UK Italy Belgium Netherlands Sweden Norway Switzerland

Japan South Korea

Brazil

Russia

India

SA

RoW

EE

IampA

Argentina Colombia

Australia Egypt South Africa

Czech Republic Hungary Poland Romania Turkey

About the survey

20 USA

1 Canada

4 Mexico

2 Colombia

20 Brazil

4 Argentina

15 Russia

8 South Korea

16 Japan

25 China

15 India

2 Indonesia

2 Thailand

4 Australia

1 Belgium

11 Norway 2 Romania

5 Turkey

1 Netherlands

1616 nyGermany

8 UK

1 Spain

6 Italy

8 France

1 Switzerland

2 Egypt

2 South Africa

2 Hungary 1 Sweden 3 Poland

N

NA

WE

MA

SA

EE

IampA

CN China

47 of survey respondents from TRIAD markets 38 of survey respondents from BRIC markets

Thailand Indonesia

16 of survey respondents from follower markets

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

6 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

DEMOGRAPHICS 200 senior executives ndash a clear picture of who they are and where they are from About the survey

CEOPresident

C-level Executive

Business Unit Head

Respondents by job title

5 2 7

45 Business Unit Manager

Head of Department

42

Respondents by regional cluster

Western Europe (WE) 44 (22)

South America (SA) 26 (13)

Mature Asia (MA) 24 (12)

North America (NA) 25 (13)

India amp ASEAN (IampA) 19 (10)

Eastern Europe (EE) 29 (15) China (CN)

25 (13)

Rest of World (RoW) 8 (4)

Respondents by company type Survey respondents

Vehicle (60)30 (60)Manufacturer

Supplier 40 (80)

Dealer 10

10

10

(20)

Financial Services Provider (20)

Mobility (20)Service Provider

Respondents by company revenue

18

10

39 33

2

Over $10 billion

$1 billion - $10 billion

$500 million - $1 billion

Two hundred automotive executives participated over half of whom are business unit heads or higher The respondents come from all parts of the automotive value chain including vehicle manufacturers Tier 1 2 and 3 suppliers dealers financial services providers and mobility service providers (including auto rental and car sharing companies)

Thirty-seven percent of the executives are based across Western and Eastern Europe with 13 percent in North America 13 percent in South America and 13 percent in China Over two-thirds of all participants represent companies with annual revenues greater than US$1 billion Nearly 40 percent of all respondents are from companies with an annual revenue of more than US$10 billion

The respondent interviews which were conducted by phone took place in July and August 2014

To find out more details about this yearrsquos survey respondents

please access the interactive online version of this survey on kpmgcom GAES2015

$100 million - $500 million

Less than $100 million

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 7

8 | KPMGrsquos Global Automotive Executive Survey 2015

The winds of change are sweeping through mobility culture withgrowing demand for new services from evermore sophisticatedcustomers ndash not just in mature markets but around the world

What is driving consumer demand

Mobility culture

Against this backdrop auto executives appear to be focused on traditional concerns such as optimization of fuel-driven combustion engines and cost efficiency programs trusting that emerging markets will be the main growth drivers for a long time to come

This mindset could leave the main players highly vulnerable to new competitors eager to attract the customer of tomorrow by lsquoowningrsquo innovative concepts like mobility services and vehicle connectivity technologies Only time will tell if the respondentsrsquo views on a number of issues prove to be accurate

The survey participants believe that customersrsquo key priority is fuel efficiency which is in line with their expectation that sales for small and basic models will be particularly strong and although car ownership is predicted to remain high across all age groups mobility services such as car sharing are expected to see profitable growth within the next decade

KEY TRENDS TO 2025 Importance of key trends for the automotive industry Mobility culture

Innovative long-term concepts are not high on executivesrsquo agenda

The auto executivesrsquo agenda is dominated

Survey results

2015

56

2014

52

2013

43

2015

49

2014

40

2013

36

48

2015

42

2014

2013

na

36

2015

2014

26

2013

na

2015

18

18

20

14

41

2013

2015

18

2014

19

13

2013

16

2015

14

2014

20

2013

16

2015

18

20

14

16

2013

920

15

12

2014

38

2013

2015

8

13

2014

18

20

13

320

15

2014

5

2013

na

Market Downsizing Increasing use Rationalization Fuel cell OEM captive Innovative Mobility-as-a- Battery electric Connected car Self driving growth in and of platforms of production electric fi nancing urban vehicle service mobility technologies cars emerging optimization and in Europe mobility and leasing design Autonomous markets of the internal standardization and shifting of concepts cars

combustion of modules the production engine (ICE) to emerging

markets

by traditional trends such as growth in emerging markets optimizing the internal combustion engine standardized platforms and rationalized production

Newer industry-changing developments such as self-driving cars connectivity urban vehicle design and mobility services are still considered as relatively less important

KPMG viewpoint

The survey results show that auto players are adapting to regulatory restrictions on CO

2

emissions and are aware of the signifi cant impact of cost pressures and portfolio shifts

However in the face of growing environmental pressures it is surprising that battery electric mobility and fuel cell electric mobility have signifi cantly decreased in importance since the corresponding 2013 survey

The respondents may be underestimating the effect on their business models of changing mobility needs A majority seem to underplay the importance of connected car technologies and automated driving even though these developments are at an advanced stage and receiving plenty of industry and media attention

2 5 8 10 3 6 9 11 1 4 7

Note of respondents rating a key trend as extremely important Na ndash answer not included in respective year Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 9

KPMG insight

Concerns over vehicle quality have risen following several high-profi le product recalls with more and more customers now seeking vehicles with longer lifespans OEMs have to maintain a careful balance between product quality and cost optimization

The intense cost pressures on suppliers in recent years combined with the increased use of platform strategies have raised the risk of quality problems

Markets of all levels of maturity are seeing growing demand for state-of the-art technology in vehicles The relatively low priority assigned to connectivity does not resonate with the growing consumer expectation of ubiquitous access to mobile online services

The high emphasis on fuel effi ciency and enhanced vehicle lifespan shows the rising prevalence of the idea of total cost of ownership (TCO) for private consumers

Our respondents believe that consumers still have a strong desire

for comfort which is slightly at odds with the quest for better mileage as more energy is needed to power the associated technology In building more effi cient vehicles automakers will have to focus not just on the powertrain but also on the communications infrastructure

A further consequence of connected driving is concern over safety as travelers cede control of the vehicle

Finally vehicle styling and exterior has risen sharply in importance between 2013 and 2015 Regardless of what is on the inside customers still want to buy from trusted brands that reflect their own self-image

Understanding what consumers want

Gary Silberg The Americas Head of Automotive KPMG in the US

10 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

67 66 68

PRODUCT ISSUES Importance of vehicle features to consumer purchase decisions until 2020 Mobility culture

Purchasing choices not yet driven by innovative concepts and online services

1 2 3 4 5

Survey results

Fuel effi ciency Enhanced vehicle lifespan

53 45 19

2015 2014 2013 2015 2014 2013

6 7

Vehicle stylingexterior Plug-in solutions for navigation speech

recognition amp mobile internet devices (eg iPhone Blackberry)

40 34 23

2015 2014 2013

2038 39

2015 2014 2013

Safety innovation

52 48 46

2015 2014 2013

8

Vehicle-bound internet connectivity amp built-in technologies such as navigation speech

recognition etc

24 26 17

2015 2014 2013

Ergonomics amp comfort

49 36 47

2015 2014 2013

9

Telematicspersonal assistance services

19 16 11

2015 2014 2013

Environmental friendliness

41 38 35

2015 2014 2013

10

Use of alternative fuel technologies such as fuel

cell electric power bioshyfuels solar power etc

18 15 21

2015 2014 2013

Auto executives believe that consumers are still fixated on traditional product issues like fuel efficiency safety and comfort

One factor that has leapt in importance is enhanced vehicle lifespan which was ranked just eighth in 2013 but is now the second most important factor infl uencing the buying decision

Although both rank relatively low on consumersrsquo wish lists there is still a preference for plug-in rather than vehicle-bound internet connectivity solutions

The use of alternative fuel technologies remains a lower priority suggesting strongly that like last yearrsquos survey the consumer purchase decision is driven more by the wallet than the conscience

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Note of respondents rating a product issue as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 11

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

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Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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FRA 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ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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ltFEFF005500740069006c0069007a00610163006900200061006300650073007400650020007300650074010300720069002000700065006e007400720075002000610020006300720065006100200064006f00630075006d0065006e00740065002000410064006f006200650020005000440046002000610064006500630076006100740065002000700065006e0074007200750020006100660069015f006100720065006100200070006500200065006300720061006e002c0020007400720069006d0069007400650072006500610020007000720069006e00200065002d006d00610069006c0020015f0069002000700065006e00740072007500200049006e007400650072006e00650074002e002000200044006f00630075006d0065006e00740065006c00650020005000440046002000630072006500610074006500200070006f00740020006600690020006400650073006300680069007300650020006300750020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200036002e00300020015f00690020007600650072007300690075006e0069006c006500200075006c0074006500720069006f006100720065002egt RUS 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Contents

Executive summary

About the survey

Mobility culture What is driving consumer demand

Technological fit Are companies betting on the right technologies

16

Business model readiness Is the industry set for an unstable mobility eco-system

26

Prepared to harvest Who is best positioned for sustainable growth

KPMG Global Automotive thought leadership

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 3

4

6

8

34

38

Executive summary Key trends to 2025 Vehicle segment

preferences Investment priorities to 2020

E-car market penetration to 2025

Mobilityculture

Auto executiveslsquo views tend to refl ect

concerns over current commercial

challenges suggesting a lack of consensus

over the shape of the future mobility

eco-system

Auto execs are caught between regulations that create technological challenges and satisfying the target group of tech-savvy mobility consumers that are never offl ine

KPMG viewpoint

Many innovative key trends are lower on executivesrsquo agendas up to 2025

The majority of the executives still feel that growth of emerging markets is the number one key trend

Only a minority of respondents consider alternative powertrain technologies mobility services and vehicle connectivity as extremely important key trends until 2025

Please see p8-9

Purchasing criteria to 2020

Purchasing choices over the next fi ve years are not yet driven by innovative concepts and online services

Auto executives believe consumers are still fi xated on traditional product issues with fuel effi ciency rated clearly as number one closely followed by safety and comfort

Compared to the 2014 survey executives see a heavily increased emphasis on enhanced vehicle lifespan most likely due to the burst of product recalls in recent years

Please see p10-11

The small and basic car segment is expected to have a high growth potential in established and emerging markets over the next fi ve years

Executives from mature markets predict decreasing sales potential for the large car segment up to 2020 with a more positive view of the basic and small car segment

BRIC market respondents envisage tremendous growth potential for all car size segments in the next fi ve years particularly small and basic cars

Please see p12-13

Vehicle ownership versus usage

Vehicle ownership for all age groups is considered important up to 2020

Most respondents believe vehicle ownership will still be important for under-25s while those aged between 25-50 are expected to be even more reliant on their own cars for personal mobility

Mobility services are forecast to be an important source of profit in fi ve to 10 years in both established and emerging markets

Please see p14-15

Technologicalfi t

According to this yearrsquos survey

the optimization of traditional

fossil fuel-based propulsion

technologies still dominates the technological

roadmap

Downsizing is still the number one powertrain investment area over the next fi ve years

However since the 2014 survey auto execs from mature TRIAD markets have become relatively less focused on this area than their BRIC counterparts

The number two investment priority for both TRIAD and BRIC execs is fuel cell vehicles replacing pure battery electric technology

Please see p16-17

E-car technologytrends to 2020

Plug-in hybrids are set to attract the highest demand of all electrifi ed propulsion technologies

Although still rated as the most important e-technology plug-in hybridsrsquo popularity has diminished year-on-year

Battery electric vehicles remain in number two position However in contrast to prior years a higher proportion of respondents believe demand for fuel cell electrical vehicles will increase over the next fi ve years

Please see p18-19

High e-car market share forecasts appear contrary to investment priorities

The majority of auto execs from Western Europe and China believe that the share of electrified vehicles (among overall new car registrations) will be between 11-15 percent Respondents from North America are even more optimistic with most foreseeing a share of between 16-20 percent in 10 years

Please see p20-21

Connectivity The next big thing

The notion of self-driving cars as the last evolutionary step of connectivity seems to be more distant than media attention suggests

Auto execs from mature Asian countries like Japan and Korea are slightly more optimistic about autonomous driving believing there will be a breakthrough in the next 20 years Respondents from Western Europe North America and China are more hesitant

Please see p22-23

What is driving consumer demand

Are companies betting on the right technologies

4 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Business model disruption ahead

Readiness for a new mobility eco-system

Strategiesto survive

Race for market share until 2020

Auto companies should choose the core competencies around which to center their future business model Will success come to product-driven hardware manufacturers or brand-driven integrated mobility solutions providers

Business model

readiness Executives are very

optimistic that traditional automotive players can cope with

an increasingly unstable mobility eco-system in the

short term

Future automotive business models should view the customersrsquo wider lives beyond their role as drivers building up a personal relationship to increase loyalty in order to stay on top of the longer-term customer interface

KPMG viewpoint

No major business model change or disruptive event is expected over the next fi ve years

Most auto execs believe that original equipment manufacturers (OEMs) will continue to own the customer relationship up to 2020

Please see p26-27

Business and investment strategies should remain conservative until 2020

Organic growth is expected to be the number one strategy for future success with two-thirds of auto execs rating this factor as extremely important

Since 2014 an increasing number of respondents feel it will be necessary to diversify and expand the value chain and cooperate with players from converging industries to cope with a mobility eco-system that is becoming more and more unstable

Please see p28-29

Traditional automotive OEM brands should matter most in 10 yearsrsquo time

Auto execs believe it is extremely likely that automotive premium and mass market brands will dominate over the next decade followed by pure e-car manufacturer brands

Brands from the ICT sector are predicted to be more important than traditional Tier 1 supplier brands

Global players like Daimler BMW and GM are considered to be best prepared closely followed by Volkswagen Toyota and Ford

In the executivesrsquo eyes newcomers like Tesla still have a huge gap to close to achieve the awareness and reach of traditional OEM brands

Please see p30-31

OEMsrsquo key survival strategy is to achieve and maintain global reach

For globally established OEMs such as BMW Volkswagen and Toyota remaining independent is the top priority

OEMs with limited global reach mainly from China and mature Asian countries are most likely to merge with others in order to survive

Please see p32-33

Prepared toharvest

Executives feel there will be no major shift

of power between OEMs until 2020

In the medium term traditional OEMs are forecast to maintain their dominance However they should prepare for a more disruptive future

Auto execs are most optimistic that the Hyundai group will increase its global market share

Volkswagen is considered to have far greater potential than its closest competitors Toyota and GM

When it comes to Chinese OEMs respondents rate Chery as having the best chance of increasing market share up to 2020

Tata another emerging OEM is rated very positively and is expected to grow its market share

Please see p34-37KPMG viewpoint

Is the industry set for an unstable mobility eco-system

Who is best positioned for sustainable growth

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 5

200 senior executive respondents 2 Czech Republic

TRIAD MARKETS

BRIC MARKETS

FOLLOWER MARKETS

USA Canada Mexico

Germany Spain France UK Italy Belgium Netherlands Sweden Norway Switzerland

Japan South Korea

Brazil

Russia

India

SA

RoW

EE

IampA

Argentina Colombia

Australia Egypt South Africa

Czech Republic Hungary Poland Romania Turkey

About the survey

20 USA

1 Canada

4 Mexico

2 Colombia

20 Brazil

4 Argentina

15 Russia

8 South Korea

16 Japan

25 China

15 India

2 Indonesia

2 Thailand

4 Australia

1 Belgium

11 Norway 2 Romania

5 Turkey

1 Netherlands

1616 nyGermany

8 UK

1 Spain

6 Italy

8 France

1 Switzerland

2 Egypt

2 South Africa

2 Hungary 1 Sweden 3 Poland

N

NA

WE

MA

SA

EE

IampA

CN China

47 of survey respondents from TRIAD markets 38 of survey respondents from BRIC markets

Thailand Indonesia

16 of survey respondents from follower markets

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

6 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

DEMOGRAPHICS 200 senior executives ndash a clear picture of who they are and where they are from About the survey

CEOPresident

C-level Executive

Business Unit Head

Respondents by job title

5 2 7

45 Business Unit Manager

Head of Department

42

Respondents by regional cluster

Western Europe (WE) 44 (22)

South America (SA) 26 (13)

Mature Asia (MA) 24 (12)

North America (NA) 25 (13)

India amp ASEAN (IampA) 19 (10)

Eastern Europe (EE) 29 (15) China (CN)

25 (13)

Rest of World (RoW) 8 (4)

Respondents by company type Survey respondents

Vehicle (60)30 (60)Manufacturer

Supplier 40 (80)

Dealer 10

10

10

(20)

Financial Services Provider (20)

Mobility (20)Service Provider

Respondents by company revenue

18

10

39 33

2

Over $10 billion

$1 billion - $10 billion

$500 million - $1 billion

Two hundred automotive executives participated over half of whom are business unit heads or higher The respondents come from all parts of the automotive value chain including vehicle manufacturers Tier 1 2 and 3 suppliers dealers financial services providers and mobility service providers (including auto rental and car sharing companies)

Thirty-seven percent of the executives are based across Western and Eastern Europe with 13 percent in North America 13 percent in South America and 13 percent in China Over two-thirds of all participants represent companies with annual revenues greater than US$1 billion Nearly 40 percent of all respondents are from companies with an annual revenue of more than US$10 billion

The respondent interviews which were conducted by phone took place in July and August 2014

To find out more details about this yearrsquos survey respondents

please access the interactive online version of this survey on kpmgcom GAES2015

$100 million - $500 million

Less than $100 million

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 7

8 | KPMGrsquos Global Automotive Executive Survey 2015

The winds of change are sweeping through mobility culture withgrowing demand for new services from evermore sophisticatedcustomers ndash not just in mature markets but around the world

What is driving consumer demand

Mobility culture

Against this backdrop auto executives appear to be focused on traditional concerns such as optimization of fuel-driven combustion engines and cost efficiency programs trusting that emerging markets will be the main growth drivers for a long time to come

This mindset could leave the main players highly vulnerable to new competitors eager to attract the customer of tomorrow by lsquoowningrsquo innovative concepts like mobility services and vehicle connectivity technologies Only time will tell if the respondentsrsquo views on a number of issues prove to be accurate

The survey participants believe that customersrsquo key priority is fuel efficiency which is in line with their expectation that sales for small and basic models will be particularly strong and although car ownership is predicted to remain high across all age groups mobility services such as car sharing are expected to see profitable growth within the next decade

KEY TRENDS TO 2025 Importance of key trends for the automotive industry Mobility culture

Innovative long-term concepts are not high on executivesrsquo agenda

The auto executivesrsquo agenda is dominated

Survey results

2015

56

2014

52

2013

43

2015

49

2014

40

2013

36

48

2015

42

2014

2013

na

36

2015

2014

26

2013

na

2015

18

18

20

14

41

2013

2015

18

2014

19

13

2013

16

2015

14

2014

20

2013

16

2015

18

20

14

16

2013

920

15

12

2014

38

2013

2015

8

13

2014

18

20

13

320

15

2014

5

2013

na

Market Downsizing Increasing use Rationalization Fuel cell OEM captive Innovative Mobility-as-a- Battery electric Connected car Self driving growth in and of platforms of production electric fi nancing urban vehicle service mobility technologies cars emerging optimization and in Europe mobility and leasing design Autonomous markets of the internal standardization and shifting of concepts cars

combustion of modules the production engine (ICE) to emerging

markets

by traditional trends such as growth in emerging markets optimizing the internal combustion engine standardized platforms and rationalized production

Newer industry-changing developments such as self-driving cars connectivity urban vehicle design and mobility services are still considered as relatively less important

KPMG viewpoint

The survey results show that auto players are adapting to regulatory restrictions on CO

2

emissions and are aware of the signifi cant impact of cost pressures and portfolio shifts

However in the face of growing environmental pressures it is surprising that battery electric mobility and fuel cell electric mobility have signifi cantly decreased in importance since the corresponding 2013 survey

The respondents may be underestimating the effect on their business models of changing mobility needs A majority seem to underplay the importance of connected car technologies and automated driving even though these developments are at an advanced stage and receiving plenty of industry and media attention

2 5 8 10 3 6 9 11 1 4 7

Note of respondents rating a key trend as extremely important Na ndash answer not included in respective year Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 9

KPMG insight

Concerns over vehicle quality have risen following several high-profi le product recalls with more and more customers now seeking vehicles with longer lifespans OEMs have to maintain a careful balance between product quality and cost optimization

The intense cost pressures on suppliers in recent years combined with the increased use of platform strategies have raised the risk of quality problems

Markets of all levels of maturity are seeing growing demand for state-of the-art technology in vehicles The relatively low priority assigned to connectivity does not resonate with the growing consumer expectation of ubiquitous access to mobile online services

The high emphasis on fuel effi ciency and enhanced vehicle lifespan shows the rising prevalence of the idea of total cost of ownership (TCO) for private consumers

Our respondents believe that consumers still have a strong desire

for comfort which is slightly at odds with the quest for better mileage as more energy is needed to power the associated technology In building more effi cient vehicles automakers will have to focus not just on the powertrain but also on the communications infrastructure

A further consequence of connected driving is concern over safety as travelers cede control of the vehicle

Finally vehicle styling and exterior has risen sharply in importance between 2013 and 2015 Regardless of what is on the inside customers still want to buy from trusted brands that reflect their own self-image

Understanding what consumers want

Gary Silberg The Americas Head of Automotive KPMG in the US

10 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

67 66 68

PRODUCT ISSUES Importance of vehicle features to consumer purchase decisions until 2020 Mobility culture

Purchasing choices not yet driven by innovative concepts and online services

1 2 3 4 5

Survey results

Fuel effi ciency Enhanced vehicle lifespan

53 45 19

2015 2014 2013 2015 2014 2013

6 7

Vehicle stylingexterior Plug-in solutions for navigation speech

recognition amp mobile internet devices (eg iPhone Blackberry)

40 34 23

2015 2014 2013

2038 39

2015 2014 2013

Safety innovation

52 48 46

2015 2014 2013

8

Vehicle-bound internet connectivity amp built-in technologies such as navigation speech

recognition etc

24 26 17

2015 2014 2013

Ergonomics amp comfort

49 36 47

2015 2014 2013

9

Telematicspersonal assistance services

19 16 11

2015 2014 2013

Environmental friendliness

41 38 35

2015 2014 2013

10

Use of alternative fuel technologies such as fuel

cell electric power bioshyfuels solar power etc

18 15 21

2015 2014 2013

Auto executives believe that consumers are still fixated on traditional product issues like fuel efficiency safety and comfort

One factor that has leapt in importance is enhanced vehicle lifespan which was ranked just eighth in 2013 but is now the second most important factor infl uencing the buying decision

Although both rank relatively low on consumersrsquo wish lists there is still a preference for plug-in rather than vehicle-bound internet connectivity solutions

The use of alternative fuel technologies remains a lower priority suggesting strongly that like last yearrsquos survey the consumer purchase decision is driven more by the wallet than the conscience

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Note of respondents rating a product issue as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 11

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

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Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

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Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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FRA 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GRE 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HEB 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zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR ltFEFF004200720075006b00200064006900730073006500200069006e006e007300740069006c006c0069006e00670065006e0065002000740069006c002000e50020006f0070007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740065007200200073006f006d00200065007200200062006500730074002000650067006e0065007400200066006f007200200073006b006a00650072006d007600690073006e0069006e0067002c00200065002d0070006f007300740020006f006700200049006e007400650072006e006500740074002e0020005000440046002d0064006f006b0075006d0065006e00740065006e00650020006b0061006e002000e50070006e00650073002000690020004100630072006f00620061007400200065006c006c00650072002000410064006f00620065002000520065006100640065007200200036002e003000200065006c006c00650072002000730065006e006500720065002egt POL 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ltFEFF04180441043f043e043b044c04370443043904420435002004340430043d043d044b04350020043d0430044104420440043e0439043a043800200434043b044f00200441043e043704340430043d0438044f00200434043e043a0443043c0435043d0442043e0432002000410064006f006200650020005000440046002c0020043c0430043a04410438043c0430043b044c043d043e0020043f043e04340445043e0434044f04490438044500200434043b044f0020044d043a04400430043d043d043e0433043e0020043f0440043e0441043c043e044204400430002c0020043f0435044004350441044b043b043a04380020043f043e0020044d043b0435043a04420440043e043d043d043e04390020043f043e044704420435002004380020044004300437043c043504490435043d0438044f0020043200200418043d044204350440043d043504420435002e002000200421043e043704340430043d043d044b04350020005000440046002d0434043e043a0443043c0435043d0442044b0020043c043e0436043d043e0020043e0442043a0440044b043204300442044c002004410020043f043e043c043e0449044c044e0020004100630072006f00620061007400200438002000410064006f00620065002000520065006100640065007200200036002e00300020043800200431043e043b043504350020043f043e04370434043d043804450020043204350440044104380439002egt 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

Executive summary Key trends to 2025 Vehicle segment

preferences Investment priorities to 2020

E-car market penetration to 2025

Mobilityculture

Auto executiveslsquo views tend to refl ect

concerns over current commercial

challenges suggesting a lack of consensus

over the shape of the future mobility

eco-system

Auto execs are caught between regulations that create technological challenges and satisfying the target group of tech-savvy mobility consumers that are never offl ine

KPMG viewpoint

Many innovative key trends are lower on executivesrsquo agendas up to 2025

The majority of the executives still feel that growth of emerging markets is the number one key trend

Only a minority of respondents consider alternative powertrain technologies mobility services and vehicle connectivity as extremely important key trends until 2025

Please see p8-9

Purchasing criteria to 2020

Purchasing choices over the next fi ve years are not yet driven by innovative concepts and online services

Auto executives believe consumers are still fi xated on traditional product issues with fuel effi ciency rated clearly as number one closely followed by safety and comfort

Compared to the 2014 survey executives see a heavily increased emphasis on enhanced vehicle lifespan most likely due to the burst of product recalls in recent years

Please see p10-11

The small and basic car segment is expected to have a high growth potential in established and emerging markets over the next fi ve years

Executives from mature markets predict decreasing sales potential for the large car segment up to 2020 with a more positive view of the basic and small car segment

BRIC market respondents envisage tremendous growth potential for all car size segments in the next fi ve years particularly small and basic cars

Please see p12-13

Vehicle ownership versus usage

Vehicle ownership for all age groups is considered important up to 2020

Most respondents believe vehicle ownership will still be important for under-25s while those aged between 25-50 are expected to be even more reliant on their own cars for personal mobility

Mobility services are forecast to be an important source of profit in fi ve to 10 years in both established and emerging markets

Please see p14-15

Technologicalfi t

According to this yearrsquos survey

the optimization of traditional

fossil fuel-based propulsion

technologies still dominates the technological

roadmap

Downsizing is still the number one powertrain investment area over the next fi ve years

However since the 2014 survey auto execs from mature TRIAD markets have become relatively less focused on this area than their BRIC counterparts

The number two investment priority for both TRIAD and BRIC execs is fuel cell vehicles replacing pure battery electric technology

Please see p16-17

E-car technologytrends to 2020

Plug-in hybrids are set to attract the highest demand of all electrifi ed propulsion technologies

Although still rated as the most important e-technology plug-in hybridsrsquo popularity has diminished year-on-year

Battery electric vehicles remain in number two position However in contrast to prior years a higher proportion of respondents believe demand for fuel cell electrical vehicles will increase over the next fi ve years

Please see p18-19

High e-car market share forecasts appear contrary to investment priorities

The majority of auto execs from Western Europe and China believe that the share of electrified vehicles (among overall new car registrations) will be between 11-15 percent Respondents from North America are even more optimistic with most foreseeing a share of between 16-20 percent in 10 years

Please see p20-21

Connectivity The next big thing

The notion of self-driving cars as the last evolutionary step of connectivity seems to be more distant than media attention suggests

Auto execs from mature Asian countries like Japan and Korea are slightly more optimistic about autonomous driving believing there will be a breakthrough in the next 20 years Respondents from Western Europe North America and China are more hesitant

Please see p22-23

What is driving consumer demand

Are companies betting on the right technologies

4 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Business model disruption ahead

Readiness for a new mobility eco-system

Strategiesto survive

Race for market share until 2020

Auto companies should choose the core competencies around which to center their future business model Will success come to product-driven hardware manufacturers or brand-driven integrated mobility solutions providers

Business model

readiness Executives are very

optimistic that traditional automotive players can cope with

an increasingly unstable mobility eco-system in the

short term

Future automotive business models should view the customersrsquo wider lives beyond their role as drivers building up a personal relationship to increase loyalty in order to stay on top of the longer-term customer interface

KPMG viewpoint

No major business model change or disruptive event is expected over the next fi ve years

Most auto execs believe that original equipment manufacturers (OEMs) will continue to own the customer relationship up to 2020

Please see p26-27

Business and investment strategies should remain conservative until 2020

Organic growth is expected to be the number one strategy for future success with two-thirds of auto execs rating this factor as extremely important

Since 2014 an increasing number of respondents feel it will be necessary to diversify and expand the value chain and cooperate with players from converging industries to cope with a mobility eco-system that is becoming more and more unstable

Please see p28-29

Traditional automotive OEM brands should matter most in 10 yearsrsquo time

Auto execs believe it is extremely likely that automotive premium and mass market brands will dominate over the next decade followed by pure e-car manufacturer brands

Brands from the ICT sector are predicted to be more important than traditional Tier 1 supplier brands

Global players like Daimler BMW and GM are considered to be best prepared closely followed by Volkswagen Toyota and Ford

In the executivesrsquo eyes newcomers like Tesla still have a huge gap to close to achieve the awareness and reach of traditional OEM brands

Please see p30-31

OEMsrsquo key survival strategy is to achieve and maintain global reach

For globally established OEMs such as BMW Volkswagen and Toyota remaining independent is the top priority

OEMs with limited global reach mainly from China and mature Asian countries are most likely to merge with others in order to survive

Please see p32-33

Prepared toharvest

Executives feel there will be no major shift

of power between OEMs until 2020

In the medium term traditional OEMs are forecast to maintain their dominance However they should prepare for a more disruptive future

Auto execs are most optimistic that the Hyundai group will increase its global market share

Volkswagen is considered to have far greater potential than its closest competitors Toyota and GM

When it comes to Chinese OEMs respondents rate Chery as having the best chance of increasing market share up to 2020

Tata another emerging OEM is rated very positively and is expected to grow its market share

Please see p34-37KPMG viewpoint

Is the industry set for an unstable mobility eco-system

Who is best positioned for sustainable growth

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 5

200 senior executive respondents 2 Czech Republic

TRIAD MARKETS

BRIC MARKETS

FOLLOWER MARKETS

USA Canada Mexico

Germany Spain France UK Italy Belgium Netherlands Sweden Norway Switzerland

Japan South Korea

Brazil

Russia

India

SA

RoW

EE

IampA

Argentina Colombia

Australia Egypt South Africa

Czech Republic Hungary Poland Romania Turkey

About the survey

20 USA

1 Canada

4 Mexico

2 Colombia

20 Brazil

4 Argentina

15 Russia

8 South Korea

16 Japan

25 China

15 India

2 Indonesia

2 Thailand

4 Australia

1 Belgium

11 Norway 2 Romania

5 Turkey

1 Netherlands

1616 nyGermany

8 UK

1 Spain

6 Italy

8 France

1 Switzerland

2 Egypt

2 South Africa

2 Hungary 1 Sweden 3 Poland

N

NA

WE

MA

SA

EE

IampA

CN China

47 of survey respondents from TRIAD markets 38 of survey respondents from BRIC markets

Thailand Indonesia

16 of survey respondents from follower markets

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

6 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

DEMOGRAPHICS 200 senior executives ndash a clear picture of who they are and where they are from About the survey

CEOPresident

C-level Executive

Business Unit Head

Respondents by job title

5 2 7

45 Business Unit Manager

Head of Department

42

Respondents by regional cluster

Western Europe (WE) 44 (22)

South America (SA) 26 (13)

Mature Asia (MA) 24 (12)

North America (NA) 25 (13)

India amp ASEAN (IampA) 19 (10)

Eastern Europe (EE) 29 (15) China (CN)

25 (13)

Rest of World (RoW) 8 (4)

Respondents by company type Survey respondents

Vehicle (60)30 (60)Manufacturer

Supplier 40 (80)

Dealer 10

10

10

(20)

Financial Services Provider (20)

Mobility (20)Service Provider

Respondents by company revenue

18

10

39 33

2

Over $10 billion

$1 billion - $10 billion

$500 million - $1 billion

Two hundred automotive executives participated over half of whom are business unit heads or higher The respondents come from all parts of the automotive value chain including vehicle manufacturers Tier 1 2 and 3 suppliers dealers financial services providers and mobility service providers (including auto rental and car sharing companies)

Thirty-seven percent of the executives are based across Western and Eastern Europe with 13 percent in North America 13 percent in South America and 13 percent in China Over two-thirds of all participants represent companies with annual revenues greater than US$1 billion Nearly 40 percent of all respondents are from companies with an annual revenue of more than US$10 billion

The respondent interviews which were conducted by phone took place in July and August 2014

To find out more details about this yearrsquos survey respondents

please access the interactive online version of this survey on kpmgcom GAES2015

$100 million - $500 million

Less than $100 million

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 7

8 | KPMGrsquos Global Automotive Executive Survey 2015

The winds of change are sweeping through mobility culture withgrowing demand for new services from evermore sophisticatedcustomers ndash not just in mature markets but around the world

What is driving consumer demand

Mobility culture

Against this backdrop auto executives appear to be focused on traditional concerns such as optimization of fuel-driven combustion engines and cost efficiency programs trusting that emerging markets will be the main growth drivers for a long time to come

This mindset could leave the main players highly vulnerable to new competitors eager to attract the customer of tomorrow by lsquoowningrsquo innovative concepts like mobility services and vehicle connectivity technologies Only time will tell if the respondentsrsquo views on a number of issues prove to be accurate

The survey participants believe that customersrsquo key priority is fuel efficiency which is in line with their expectation that sales for small and basic models will be particularly strong and although car ownership is predicted to remain high across all age groups mobility services such as car sharing are expected to see profitable growth within the next decade

KEY TRENDS TO 2025 Importance of key trends for the automotive industry Mobility culture

Innovative long-term concepts are not high on executivesrsquo agenda

The auto executivesrsquo agenda is dominated

Survey results

2015

56

2014

52

2013

43

2015

49

2014

40

2013

36

48

2015

42

2014

2013

na

36

2015

2014

26

2013

na

2015

18

18

20

14

41

2013

2015

18

2014

19

13

2013

16

2015

14

2014

20

2013

16

2015

18

20

14

16

2013

920

15

12

2014

38

2013

2015

8

13

2014

18

20

13

320

15

2014

5

2013

na

Market Downsizing Increasing use Rationalization Fuel cell OEM captive Innovative Mobility-as-a- Battery electric Connected car Self driving growth in and of platforms of production electric fi nancing urban vehicle service mobility technologies cars emerging optimization and in Europe mobility and leasing design Autonomous markets of the internal standardization and shifting of concepts cars

combustion of modules the production engine (ICE) to emerging

markets

by traditional trends such as growth in emerging markets optimizing the internal combustion engine standardized platforms and rationalized production

Newer industry-changing developments such as self-driving cars connectivity urban vehicle design and mobility services are still considered as relatively less important

KPMG viewpoint

The survey results show that auto players are adapting to regulatory restrictions on CO

2

emissions and are aware of the signifi cant impact of cost pressures and portfolio shifts

However in the face of growing environmental pressures it is surprising that battery electric mobility and fuel cell electric mobility have signifi cantly decreased in importance since the corresponding 2013 survey

The respondents may be underestimating the effect on their business models of changing mobility needs A majority seem to underplay the importance of connected car technologies and automated driving even though these developments are at an advanced stage and receiving plenty of industry and media attention

2 5 8 10 3 6 9 11 1 4 7

Note of respondents rating a key trend as extremely important Na ndash answer not included in respective year Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 9

KPMG insight

Concerns over vehicle quality have risen following several high-profi le product recalls with more and more customers now seeking vehicles with longer lifespans OEMs have to maintain a careful balance between product quality and cost optimization

The intense cost pressures on suppliers in recent years combined with the increased use of platform strategies have raised the risk of quality problems

Markets of all levels of maturity are seeing growing demand for state-of the-art technology in vehicles The relatively low priority assigned to connectivity does not resonate with the growing consumer expectation of ubiquitous access to mobile online services

The high emphasis on fuel effi ciency and enhanced vehicle lifespan shows the rising prevalence of the idea of total cost of ownership (TCO) for private consumers

Our respondents believe that consumers still have a strong desire

for comfort which is slightly at odds with the quest for better mileage as more energy is needed to power the associated technology In building more effi cient vehicles automakers will have to focus not just on the powertrain but also on the communications infrastructure

A further consequence of connected driving is concern over safety as travelers cede control of the vehicle

Finally vehicle styling and exterior has risen sharply in importance between 2013 and 2015 Regardless of what is on the inside customers still want to buy from trusted brands that reflect their own self-image

Understanding what consumers want

Gary Silberg The Americas Head of Automotive KPMG in the US

10 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

67 66 68

PRODUCT ISSUES Importance of vehicle features to consumer purchase decisions until 2020 Mobility culture

Purchasing choices not yet driven by innovative concepts and online services

1 2 3 4 5

Survey results

Fuel effi ciency Enhanced vehicle lifespan

53 45 19

2015 2014 2013 2015 2014 2013

6 7

Vehicle stylingexterior Plug-in solutions for navigation speech

recognition amp mobile internet devices (eg iPhone Blackberry)

40 34 23

2015 2014 2013

2038 39

2015 2014 2013

Safety innovation

52 48 46

2015 2014 2013

8

Vehicle-bound internet connectivity amp built-in technologies such as navigation speech

recognition etc

24 26 17

2015 2014 2013

Ergonomics amp comfort

49 36 47

2015 2014 2013

9

Telematicspersonal assistance services

19 16 11

2015 2014 2013

Environmental friendliness

41 38 35

2015 2014 2013

10

Use of alternative fuel technologies such as fuel

cell electric power bioshyfuels solar power etc

18 15 21

2015 2014 2013

Auto executives believe that consumers are still fixated on traditional product issues like fuel efficiency safety and comfort

One factor that has leapt in importance is enhanced vehicle lifespan which was ranked just eighth in 2013 but is now the second most important factor infl uencing the buying decision

Although both rank relatively low on consumersrsquo wish lists there is still a preference for plug-in rather than vehicle-bound internet connectivity solutions

The use of alternative fuel technologies remains a lower priority suggesting strongly that like last yearrsquos survey the consumer purchase decision is driven more by the wallet than the conscience

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Note of respondents rating a product issue as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 11

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 300 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 300 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 BGR 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

Business model disruption ahead

Readiness for a new mobility eco-system

Strategiesto survive

Race for market share until 2020

Auto companies should choose the core competencies around which to center their future business model Will success come to product-driven hardware manufacturers or brand-driven integrated mobility solutions providers

Business model

readiness Executives are very

optimistic that traditional automotive players can cope with

an increasingly unstable mobility eco-system in the

short term

Future automotive business models should view the customersrsquo wider lives beyond their role as drivers building up a personal relationship to increase loyalty in order to stay on top of the longer-term customer interface

KPMG viewpoint

No major business model change or disruptive event is expected over the next fi ve years

Most auto execs believe that original equipment manufacturers (OEMs) will continue to own the customer relationship up to 2020

Please see p26-27

Business and investment strategies should remain conservative until 2020

Organic growth is expected to be the number one strategy for future success with two-thirds of auto execs rating this factor as extremely important

Since 2014 an increasing number of respondents feel it will be necessary to diversify and expand the value chain and cooperate with players from converging industries to cope with a mobility eco-system that is becoming more and more unstable

Please see p28-29

Traditional automotive OEM brands should matter most in 10 yearsrsquo time

Auto execs believe it is extremely likely that automotive premium and mass market brands will dominate over the next decade followed by pure e-car manufacturer brands

Brands from the ICT sector are predicted to be more important than traditional Tier 1 supplier brands

Global players like Daimler BMW and GM are considered to be best prepared closely followed by Volkswagen Toyota and Ford

In the executivesrsquo eyes newcomers like Tesla still have a huge gap to close to achieve the awareness and reach of traditional OEM brands

Please see p30-31

OEMsrsquo key survival strategy is to achieve and maintain global reach

For globally established OEMs such as BMW Volkswagen and Toyota remaining independent is the top priority

OEMs with limited global reach mainly from China and mature Asian countries are most likely to merge with others in order to survive

Please see p32-33

Prepared toharvest

Executives feel there will be no major shift

of power between OEMs until 2020

In the medium term traditional OEMs are forecast to maintain their dominance However they should prepare for a more disruptive future

Auto execs are most optimistic that the Hyundai group will increase its global market share

Volkswagen is considered to have far greater potential than its closest competitors Toyota and GM

When it comes to Chinese OEMs respondents rate Chery as having the best chance of increasing market share up to 2020

Tata another emerging OEM is rated very positively and is expected to grow its market share

Please see p34-37KPMG viewpoint

Is the industry set for an unstable mobility eco-system

Who is best positioned for sustainable growth

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 5

200 senior executive respondents 2 Czech Republic

TRIAD MARKETS

BRIC MARKETS

FOLLOWER MARKETS

USA Canada Mexico

Germany Spain France UK Italy Belgium Netherlands Sweden Norway Switzerland

Japan South Korea

Brazil

Russia

India

SA

RoW

EE

IampA

Argentina Colombia

Australia Egypt South Africa

Czech Republic Hungary Poland Romania Turkey

About the survey

20 USA

1 Canada

4 Mexico

2 Colombia

20 Brazil

4 Argentina

15 Russia

8 South Korea

16 Japan

25 China

15 India

2 Indonesia

2 Thailand

4 Australia

1 Belgium

11 Norway 2 Romania

5 Turkey

1 Netherlands

1616 nyGermany

8 UK

1 Spain

6 Italy

8 France

1 Switzerland

2 Egypt

2 South Africa

2 Hungary 1 Sweden 3 Poland

N

NA

WE

MA

SA

EE

IampA

CN China

47 of survey respondents from TRIAD markets 38 of survey respondents from BRIC markets

Thailand Indonesia

16 of survey respondents from follower markets

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

6 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

DEMOGRAPHICS 200 senior executives ndash a clear picture of who they are and where they are from About the survey

CEOPresident

C-level Executive

Business Unit Head

Respondents by job title

5 2 7

45 Business Unit Manager

Head of Department

42

Respondents by regional cluster

Western Europe (WE) 44 (22)

South America (SA) 26 (13)

Mature Asia (MA) 24 (12)

North America (NA) 25 (13)

India amp ASEAN (IampA) 19 (10)

Eastern Europe (EE) 29 (15) China (CN)

25 (13)

Rest of World (RoW) 8 (4)

Respondents by company type Survey respondents

Vehicle (60)30 (60)Manufacturer

Supplier 40 (80)

Dealer 10

10

10

(20)

Financial Services Provider (20)

Mobility (20)Service Provider

Respondents by company revenue

18

10

39 33

2

Over $10 billion

$1 billion - $10 billion

$500 million - $1 billion

Two hundred automotive executives participated over half of whom are business unit heads or higher The respondents come from all parts of the automotive value chain including vehicle manufacturers Tier 1 2 and 3 suppliers dealers financial services providers and mobility service providers (including auto rental and car sharing companies)

Thirty-seven percent of the executives are based across Western and Eastern Europe with 13 percent in North America 13 percent in South America and 13 percent in China Over two-thirds of all participants represent companies with annual revenues greater than US$1 billion Nearly 40 percent of all respondents are from companies with an annual revenue of more than US$10 billion

The respondent interviews which were conducted by phone took place in July and August 2014

To find out more details about this yearrsquos survey respondents

please access the interactive online version of this survey on kpmgcom GAES2015

$100 million - $500 million

Less than $100 million

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 7

8 | KPMGrsquos Global Automotive Executive Survey 2015

The winds of change are sweeping through mobility culture withgrowing demand for new services from evermore sophisticatedcustomers ndash not just in mature markets but around the world

What is driving consumer demand

Mobility culture

Against this backdrop auto executives appear to be focused on traditional concerns such as optimization of fuel-driven combustion engines and cost efficiency programs trusting that emerging markets will be the main growth drivers for a long time to come

This mindset could leave the main players highly vulnerable to new competitors eager to attract the customer of tomorrow by lsquoowningrsquo innovative concepts like mobility services and vehicle connectivity technologies Only time will tell if the respondentsrsquo views on a number of issues prove to be accurate

The survey participants believe that customersrsquo key priority is fuel efficiency which is in line with their expectation that sales for small and basic models will be particularly strong and although car ownership is predicted to remain high across all age groups mobility services such as car sharing are expected to see profitable growth within the next decade

KEY TRENDS TO 2025 Importance of key trends for the automotive industry Mobility culture

Innovative long-term concepts are not high on executivesrsquo agenda

The auto executivesrsquo agenda is dominated

Survey results

2015

56

2014

52

2013

43

2015

49

2014

40

2013

36

48

2015

42

2014

2013

na

36

2015

2014

26

2013

na

2015

18

18

20

14

41

2013

2015

18

2014

19

13

2013

16

2015

14

2014

20

2013

16

2015

18

20

14

16

2013

920

15

12

2014

38

2013

2015

8

13

2014

18

20

13

320

15

2014

5

2013

na

Market Downsizing Increasing use Rationalization Fuel cell OEM captive Innovative Mobility-as-a- Battery electric Connected car Self driving growth in and of platforms of production electric fi nancing urban vehicle service mobility technologies cars emerging optimization and in Europe mobility and leasing design Autonomous markets of the internal standardization and shifting of concepts cars

combustion of modules the production engine (ICE) to emerging

markets

by traditional trends such as growth in emerging markets optimizing the internal combustion engine standardized platforms and rationalized production

Newer industry-changing developments such as self-driving cars connectivity urban vehicle design and mobility services are still considered as relatively less important

KPMG viewpoint

The survey results show that auto players are adapting to regulatory restrictions on CO

2

emissions and are aware of the signifi cant impact of cost pressures and portfolio shifts

However in the face of growing environmental pressures it is surprising that battery electric mobility and fuel cell electric mobility have signifi cantly decreased in importance since the corresponding 2013 survey

The respondents may be underestimating the effect on their business models of changing mobility needs A majority seem to underplay the importance of connected car technologies and automated driving even though these developments are at an advanced stage and receiving plenty of industry and media attention

2 5 8 10 3 6 9 11 1 4 7

Note of respondents rating a key trend as extremely important Na ndash answer not included in respective year Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 9

KPMG insight

Concerns over vehicle quality have risen following several high-profi le product recalls with more and more customers now seeking vehicles with longer lifespans OEMs have to maintain a careful balance between product quality and cost optimization

The intense cost pressures on suppliers in recent years combined with the increased use of platform strategies have raised the risk of quality problems

Markets of all levels of maturity are seeing growing demand for state-of the-art technology in vehicles The relatively low priority assigned to connectivity does not resonate with the growing consumer expectation of ubiquitous access to mobile online services

The high emphasis on fuel effi ciency and enhanced vehicle lifespan shows the rising prevalence of the idea of total cost of ownership (TCO) for private consumers

Our respondents believe that consumers still have a strong desire

for comfort which is slightly at odds with the quest for better mileage as more energy is needed to power the associated technology In building more effi cient vehicles automakers will have to focus not just on the powertrain but also on the communications infrastructure

A further consequence of connected driving is concern over safety as travelers cede control of the vehicle

Finally vehicle styling and exterior has risen sharply in importance between 2013 and 2015 Regardless of what is on the inside customers still want to buy from trusted brands that reflect their own self-image

Understanding what consumers want

Gary Silberg The Americas Head of Automotive KPMG in the US

10 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

67 66 68

PRODUCT ISSUES Importance of vehicle features to consumer purchase decisions until 2020 Mobility culture

Purchasing choices not yet driven by innovative concepts and online services

1 2 3 4 5

Survey results

Fuel effi ciency Enhanced vehicle lifespan

53 45 19

2015 2014 2013 2015 2014 2013

6 7

Vehicle stylingexterior Plug-in solutions for navigation speech

recognition amp mobile internet devices (eg iPhone Blackberry)

40 34 23

2015 2014 2013

2038 39

2015 2014 2013

Safety innovation

52 48 46

2015 2014 2013

8

Vehicle-bound internet connectivity amp built-in technologies such as navigation speech

recognition etc

24 26 17

2015 2014 2013

Ergonomics amp comfort

49 36 47

2015 2014 2013

9

Telematicspersonal assistance services

19 16 11

2015 2014 2013

Environmental friendliness

41 38 35

2015 2014 2013

10

Use of alternative fuel technologies such as fuel

cell electric power bioshyfuels solar power etc

18 15 21

2015 2014 2013

Auto executives believe that consumers are still fixated on traditional product issues like fuel efficiency safety and comfort

One factor that has leapt in importance is enhanced vehicle lifespan which was ranked just eighth in 2013 but is now the second most important factor infl uencing the buying decision

Although both rank relatively low on consumersrsquo wish lists there is still a preference for plug-in rather than vehicle-bound internet connectivity solutions

The use of alternative fuel technologies remains a lower priority suggesting strongly that like last yearrsquos survey the consumer purchase decision is driven more by the wallet than the conscience

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Note of respondents rating a product issue as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 11

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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 BGR 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS ltFEFF04180441043f043e043b044c04370443043904420435002004340430043d043d044b04350020043d0430044104420440043e0439043a043800200434043b044f00200441043e043704340430043d0438044f00200434043e043a0443043c0435043d0442043e0432002000410064006f006200650020005000440046002c0020043c0430043a04410438043c0430043b044c043d043e0020043f043e04340445043e0434044f04490438044500200434043b044f0020044d043a04400430043d043d043e0433043e0020043f0440043e0441043c043e044204400430002c0020043f0435044004350441044b043b043a04380020043f043e0020044d043b0435043a04420440043e043d043d043e04390020043f043e044704420435002004380020044004300437043c043504490435043d0438044f0020043200200418043d044204350440043d043504420435002e002000200421043e043704340430043d043d044b04350020005000440046002d0434043e043a0443043c0435043d0442044b0020043c043e0436043d043e0020043e0442043a0440044b043204300442044c002004410020043f043e043c043e0449044c044e0020004100630072006f00620061007400200438002000410064006f00620065002000520065006100640065007200200036002e00300020043800200431043e043b043504350020043f043e04370434043d043804450020043204350440044104380439002egt SKY ltFEFF0054006900650074006f0020006e006100730074006100760065006e0069006100200070006f0075017e0069007400650020006e00610020007600790074007600e100720061006e0069006500200064006f006b0075006d0065006e0074006f0076002000410064006f006200650020005000440046002c0020006b0074006f007200e90020007300610020006e0061006a006c0065007001610069006500200068006f0064006900610020006e00610020007a006f006200720061007a006f00760061006e006900650020006e00610020006f006200720061007a006f0076006b0065002c00200070006f007300690065006c0061006e0069006500200065002d006d00610069006c006f006d002000610020006e006100200049006e007400650072006e00650074002e00200056007900740076006f00720065006e00e900200064006f006b0075006d0065006e007400790020005000440046002000620075006400650020006d006f017e006e00e90020006f00740076006f00720069016500200076002000700072006f006700720061006d006f006300680020004100630072006f00620061007400200061002000410064006f00620065002000520065006100640065007200200036002e0030002000610020006e006f0076016100ed00630068002egt SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

200 senior executive respondents 2 Czech Republic

TRIAD MARKETS

BRIC MARKETS

FOLLOWER MARKETS

USA Canada Mexico

Germany Spain France UK Italy Belgium Netherlands Sweden Norway Switzerland

Japan South Korea

Brazil

Russia

India

SA

RoW

EE

IampA

Argentina Colombia

Australia Egypt South Africa

Czech Republic Hungary Poland Romania Turkey

About the survey

20 USA

1 Canada

4 Mexico

2 Colombia

20 Brazil

4 Argentina

15 Russia

8 South Korea

16 Japan

25 China

15 India

2 Indonesia

2 Thailand

4 Australia

1 Belgium

11 Norway 2 Romania

5 Turkey

1 Netherlands

1616 nyGermany

8 UK

1 Spain

6 Italy

8 France

1 Switzerland

2 Egypt

2 South Africa

2 Hungary 1 Sweden 3 Poland

N

NA

WE

MA

SA

EE

IampA

CN China

47 of survey respondents from TRIAD markets 38 of survey respondents from BRIC markets

Thailand Indonesia

16 of survey respondents from follower markets

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

6 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

DEMOGRAPHICS 200 senior executives ndash a clear picture of who they are and where they are from About the survey

CEOPresident

C-level Executive

Business Unit Head

Respondents by job title

5 2 7

45 Business Unit Manager

Head of Department

42

Respondents by regional cluster

Western Europe (WE) 44 (22)

South America (SA) 26 (13)

Mature Asia (MA) 24 (12)

North America (NA) 25 (13)

India amp ASEAN (IampA) 19 (10)

Eastern Europe (EE) 29 (15) China (CN)

25 (13)

Rest of World (RoW) 8 (4)

Respondents by company type Survey respondents

Vehicle (60)30 (60)Manufacturer

Supplier 40 (80)

Dealer 10

10

10

(20)

Financial Services Provider (20)

Mobility (20)Service Provider

Respondents by company revenue

18

10

39 33

2

Over $10 billion

$1 billion - $10 billion

$500 million - $1 billion

Two hundred automotive executives participated over half of whom are business unit heads or higher The respondents come from all parts of the automotive value chain including vehicle manufacturers Tier 1 2 and 3 suppliers dealers financial services providers and mobility service providers (including auto rental and car sharing companies)

Thirty-seven percent of the executives are based across Western and Eastern Europe with 13 percent in North America 13 percent in South America and 13 percent in China Over two-thirds of all participants represent companies with annual revenues greater than US$1 billion Nearly 40 percent of all respondents are from companies with an annual revenue of more than US$10 billion

The respondent interviews which were conducted by phone took place in July and August 2014

To find out more details about this yearrsquos survey respondents

please access the interactive online version of this survey on kpmgcom GAES2015

$100 million - $500 million

Less than $100 million

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 7

8 | KPMGrsquos Global Automotive Executive Survey 2015

The winds of change are sweeping through mobility culture withgrowing demand for new services from evermore sophisticatedcustomers ndash not just in mature markets but around the world

What is driving consumer demand

Mobility culture

Against this backdrop auto executives appear to be focused on traditional concerns such as optimization of fuel-driven combustion engines and cost efficiency programs trusting that emerging markets will be the main growth drivers for a long time to come

This mindset could leave the main players highly vulnerable to new competitors eager to attract the customer of tomorrow by lsquoowningrsquo innovative concepts like mobility services and vehicle connectivity technologies Only time will tell if the respondentsrsquo views on a number of issues prove to be accurate

The survey participants believe that customersrsquo key priority is fuel efficiency which is in line with their expectation that sales for small and basic models will be particularly strong and although car ownership is predicted to remain high across all age groups mobility services such as car sharing are expected to see profitable growth within the next decade

KEY TRENDS TO 2025 Importance of key trends for the automotive industry Mobility culture

Innovative long-term concepts are not high on executivesrsquo agenda

The auto executivesrsquo agenda is dominated

Survey results

2015

56

2014

52

2013

43

2015

49

2014

40

2013

36

48

2015

42

2014

2013

na

36

2015

2014

26

2013

na

2015

18

18

20

14

41

2013

2015

18

2014

19

13

2013

16

2015

14

2014

20

2013

16

2015

18

20

14

16

2013

920

15

12

2014

38

2013

2015

8

13

2014

18

20

13

320

15

2014

5

2013

na

Market Downsizing Increasing use Rationalization Fuel cell OEM captive Innovative Mobility-as-a- Battery electric Connected car Self driving growth in and of platforms of production electric fi nancing urban vehicle service mobility technologies cars emerging optimization and in Europe mobility and leasing design Autonomous markets of the internal standardization and shifting of concepts cars

combustion of modules the production engine (ICE) to emerging

markets

by traditional trends such as growth in emerging markets optimizing the internal combustion engine standardized platforms and rationalized production

Newer industry-changing developments such as self-driving cars connectivity urban vehicle design and mobility services are still considered as relatively less important

KPMG viewpoint

The survey results show that auto players are adapting to regulatory restrictions on CO

2

emissions and are aware of the signifi cant impact of cost pressures and portfolio shifts

However in the face of growing environmental pressures it is surprising that battery electric mobility and fuel cell electric mobility have signifi cantly decreased in importance since the corresponding 2013 survey

The respondents may be underestimating the effect on their business models of changing mobility needs A majority seem to underplay the importance of connected car technologies and automated driving even though these developments are at an advanced stage and receiving plenty of industry and media attention

2 5 8 10 3 6 9 11 1 4 7

Note of respondents rating a key trend as extremely important Na ndash answer not included in respective year Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 9

KPMG insight

Concerns over vehicle quality have risen following several high-profi le product recalls with more and more customers now seeking vehicles with longer lifespans OEMs have to maintain a careful balance between product quality and cost optimization

The intense cost pressures on suppliers in recent years combined with the increased use of platform strategies have raised the risk of quality problems

Markets of all levels of maturity are seeing growing demand for state-of the-art technology in vehicles The relatively low priority assigned to connectivity does not resonate with the growing consumer expectation of ubiquitous access to mobile online services

The high emphasis on fuel effi ciency and enhanced vehicle lifespan shows the rising prevalence of the idea of total cost of ownership (TCO) for private consumers

Our respondents believe that consumers still have a strong desire

for comfort which is slightly at odds with the quest for better mileage as more energy is needed to power the associated technology In building more effi cient vehicles automakers will have to focus not just on the powertrain but also on the communications infrastructure

A further consequence of connected driving is concern over safety as travelers cede control of the vehicle

Finally vehicle styling and exterior has risen sharply in importance between 2013 and 2015 Regardless of what is on the inside customers still want to buy from trusted brands that reflect their own self-image

Understanding what consumers want

Gary Silberg The Americas Head of Automotive KPMG in the US

10 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

67 66 68

PRODUCT ISSUES Importance of vehicle features to consumer purchase decisions until 2020 Mobility culture

Purchasing choices not yet driven by innovative concepts and online services

1 2 3 4 5

Survey results

Fuel effi ciency Enhanced vehicle lifespan

53 45 19

2015 2014 2013 2015 2014 2013

6 7

Vehicle stylingexterior Plug-in solutions for navigation speech

recognition amp mobile internet devices (eg iPhone Blackberry)

40 34 23

2015 2014 2013

2038 39

2015 2014 2013

Safety innovation

52 48 46

2015 2014 2013

8

Vehicle-bound internet connectivity amp built-in technologies such as navigation speech

recognition etc

24 26 17

2015 2014 2013

Ergonomics amp comfort

49 36 47

2015 2014 2013

9

Telematicspersonal assistance services

19 16 11

2015 2014 2013

Environmental friendliness

41 38 35

2015 2014 2013

10

Use of alternative fuel technologies such as fuel

cell electric power bioshyfuels solar power etc

18 15 21

2015 2014 2013

Auto executives believe that consumers are still fixated on traditional product issues like fuel efficiency safety and comfort

One factor that has leapt in importance is enhanced vehicle lifespan which was ranked just eighth in 2013 but is now the second most important factor infl uencing the buying decision

Although both rank relatively low on consumersrsquo wish lists there is still a preference for plug-in rather than vehicle-bound internet connectivity solutions

The use of alternative fuel technologies remains a lower priority suggesting strongly that like last yearrsquos survey the consumer purchase decision is driven more by the wallet than the conscience

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Note of respondents rating a product issue as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 11

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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 FRA 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 GRE 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 HEB ltFEFF05D405E905EA05DE05E905D5002005D105D405D205D305E805D505EA002005D005DC05D4002005DB05D305D9002005DC05D905E605D505E8002005DE05E105DE05DB05D9002000410064006F006200650020005000440046002005D405DE05D505EA05D005DE05D905DD002005DC05EA05E605D505D205EA002005DE05E105DA002C002005D305D505D005E8002005D005DC05E705D805E805D505E005D9002005D505D405D005D905E005D805E805E005D8002E002005DE05E105DE05DB05D90020005000440046002005E905E005D505E605E805D5002005E005D905EA05E005D905DD002005DC05E405EA05D905D705D4002005D105D005DE05E605E205D505EA0020004100630072006F006200610074002005D5002D00410064006F00620065002000520065006100640065007200200036002e0030002005D505D205E805E105D005D505EA002005DE05EA05E705D305DE05D505EA002005D905D505EA05E8002E002D0033002C002005E205D905D905E005D5002005D105DE05D305E805D905DA002005DC05DE05E905EA05DE05E9002005E905DC0020004100630072006F006200610074002E002005DE05E105DE05DB05D90020005000440046002005E905E005D505E605E805D5002005E005D905EA05E005D905DD002005DC05E405EA05D905D705D4002005D105D005DE05E605E205D505EA0020004100630072006F006200610074002005D5002D00410064006F00620065002000520065006100640065007200200036002e0030002005D505D205E805E105D005D505EA002005DE05EA05E705D305DE05D505EA002005D905D505EA05E8002Egt HRV ltFEFF005a00610020007300740076006100720061006e006a0065002000500044004600200064006f006b0075006d0065006e0061007400610020006e0061006a0070006f0067006f0064006e0069006a006900680020007a00610020007000720069006b0061007a0020006e00610020007a00610073006c006f006e0075002c00200065002d0070006f0161007400690020006900200049006e007400650072006e0065007400750020006b006f00720069007300740069007400650020006f0076006500200070006f0073007400610076006b0065002e00200020005300740076006f00720065006e0069002000500044004600200064006f006b0075006d0065006e007400690020006d006f006700750020007300650020006f00740076006f00720069007400690020004100630072006f00620061007400200069002000410064006f00620065002000520065006100640065007200200036002e0030002000690020006b00610073006e0069006a0069006d0020007600650072007a0069006a0061006d0061002egt HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue 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false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

DEMOGRAPHICS 200 senior executives ndash a clear picture of who they are and where they are from About the survey

CEOPresident

C-level Executive

Business Unit Head

Respondents by job title

5 2 7

45 Business Unit Manager

Head of Department

42

Respondents by regional cluster

Western Europe (WE) 44 (22)

South America (SA) 26 (13)

Mature Asia (MA) 24 (12)

North America (NA) 25 (13)

India amp ASEAN (IampA) 19 (10)

Eastern Europe (EE) 29 (15) China (CN)

25 (13)

Rest of World (RoW) 8 (4)

Respondents by company type Survey respondents

Vehicle (60)30 (60)Manufacturer

Supplier 40 (80)

Dealer 10

10

10

(20)

Financial Services Provider (20)

Mobility (20)Service Provider

Respondents by company revenue

18

10

39 33

2

Over $10 billion

$1 billion - $10 billion

$500 million - $1 billion

Two hundred automotive executives participated over half of whom are business unit heads or higher The respondents come from all parts of the automotive value chain including vehicle manufacturers Tier 1 2 and 3 suppliers dealers financial services providers and mobility service providers (including auto rental and car sharing companies)

Thirty-seven percent of the executives are based across Western and Eastern Europe with 13 percent in North America 13 percent in South America and 13 percent in China Over two-thirds of all participants represent companies with annual revenues greater than US$1 billion Nearly 40 percent of all respondents are from companies with an annual revenue of more than US$10 billion

The respondent interviews which were conducted by phone took place in July and August 2014

To find out more details about this yearrsquos survey respondents

please access the interactive online version of this survey on kpmgcom GAES2015

$100 million - $500 million

Less than $100 million

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 7

8 | KPMGrsquos Global Automotive Executive Survey 2015

The winds of change are sweeping through mobility culture withgrowing demand for new services from evermore sophisticatedcustomers ndash not just in mature markets but around the world

What is driving consumer demand

Mobility culture

Against this backdrop auto executives appear to be focused on traditional concerns such as optimization of fuel-driven combustion engines and cost efficiency programs trusting that emerging markets will be the main growth drivers for a long time to come

This mindset could leave the main players highly vulnerable to new competitors eager to attract the customer of tomorrow by lsquoowningrsquo innovative concepts like mobility services and vehicle connectivity technologies Only time will tell if the respondentsrsquo views on a number of issues prove to be accurate

The survey participants believe that customersrsquo key priority is fuel efficiency which is in line with their expectation that sales for small and basic models will be particularly strong and although car ownership is predicted to remain high across all age groups mobility services such as car sharing are expected to see profitable growth within the next decade

KEY TRENDS TO 2025 Importance of key trends for the automotive industry Mobility culture

Innovative long-term concepts are not high on executivesrsquo agenda

The auto executivesrsquo agenda is dominated

Survey results

2015

56

2014

52

2013

43

2015

49

2014

40

2013

36

48

2015

42

2014

2013

na

36

2015

2014

26

2013

na

2015

18

18

20

14

41

2013

2015

18

2014

19

13

2013

16

2015

14

2014

20

2013

16

2015

18

20

14

16

2013

920

15

12

2014

38

2013

2015

8

13

2014

18

20

13

320

15

2014

5

2013

na

Market Downsizing Increasing use Rationalization Fuel cell OEM captive Innovative Mobility-as-a- Battery electric Connected car Self driving growth in and of platforms of production electric fi nancing urban vehicle service mobility technologies cars emerging optimization and in Europe mobility and leasing design Autonomous markets of the internal standardization and shifting of concepts cars

combustion of modules the production engine (ICE) to emerging

markets

by traditional trends such as growth in emerging markets optimizing the internal combustion engine standardized platforms and rationalized production

Newer industry-changing developments such as self-driving cars connectivity urban vehicle design and mobility services are still considered as relatively less important

KPMG viewpoint

The survey results show that auto players are adapting to regulatory restrictions on CO

2

emissions and are aware of the signifi cant impact of cost pressures and portfolio shifts

However in the face of growing environmental pressures it is surprising that battery electric mobility and fuel cell electric mobility have signifi cantly decreased in importance since the corresponding 2013 survey

The respondents may be underestimating the effect on their business models of changing mobility needs A majority seem to underplay the importance of connected car technologies and automated driving even though these developments are at an advanced stage and receiving plenty of industry and media attention

2 5 8 10 3 6 9 11 1 4 7

Note of respondents rating a key trend as extremely important Na ndash answer not included in respective year Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 9

KPMG insight

Concerns over vehicle quality have risen following several high-profi le product recalls with more and more customers now seeking vehicles with longer lifespans OEMs have to maintain a careful balance between product quality and cost optimization

The intense cost pressures on suppliers in recent years combined with the increased use of platform strategies have raised the risk of quality problems

Markets of all levels of maturity are seeing growing demand for state-of the-art technology in vehicles The relatively low priority assigned to connectivity does not resonate with the growing consumer expectation of ubiquitous access to mobile online services

The high emphasis on fuel effi ciency and enhanced vehicle lifespan shows the rising prevalence of the idea of total cost of ownership (TCO) for private consumers

Our respondents believe that consumers still have a strong desire

for comfort which is slightly at odds with the quest for better mileage as more energy is needed to power the associated technology In building more effi cient vehicles automakers will have to focus not just on the powertrain but also on the communications infrastructure

A further consequence of connected driving is concern over safety as travelers cede control of the vehicle

Finally vehicle styling and exterior has risen sharply in importance between 2013 and 2015 Regardless of what is on the inside customers still want to buy from trusted brands that reflect their own self-image

Understanding what consumers want

Gary Silberg The Americas Head of Automotive KPMG in the US

10 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

67 66 68

PRODUCT ISSUES Importance of vehicle features to consumer purchase decisions until 2020 Mobility culture

Purchasing choices not yet driven by innovative concepts and online services

1 2 3 4 5

Survey results

Fuel effi ciency Enhanced vehicle lifespan

53 45 19

2015 2014 2013 2015 2014 2013

6 7

Vehicle stylingexterior Plug-in solutions for navigation speech

recognition amp mobile internet devices (eg iPhone Blackberry)

40 34 23

2015 2014 2013

2038 39

2015 2014 2013

Safety innovation

52 48 46

2015 2014 2013

8

Vehicle-bound internet connectivity amp built-in technologies such as navigation speech

recognition etc

24 26 17

2015 2014 2013

Ergonomics amp comfort

49 36 47

2015 2014 2013

9

Telematicspersonal assistance services

19 16 11

2015 2014 2013

Environmental friendliness

41 38 35

2015 2014 2013

10

Use of alternative fuel technologies such as fuel

cell electric power bioshyfuels solar power etc

18 15 21

2015 2014 2013

Auto executives believe that consumers are still fixated on traditional product issues like fuel efficiency safety and comfort

One factor that has leapt in importance is enhanced vehicle lifespan which was ranked just eighth in 2013 but is now the second most important factor infl uencing the buying decision

Although both rank relatively low on consumersrsquo wish lists there is still a preference for plug-in rather than vehicle-bound internet connectivity solutions

The use of alternative fuel technologies remains a lower priority suggesting strongly that like last yearrsquos survey the consumer purchase decision is driven more by the wallet than the conscience

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Note of respondents rating a product issue as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 11

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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8 | KPMGrsquos Global Automotive Executive Survey 2015

The winds of change are sweeping through mobility culture withgrowing demand for new services from evermore sophisticatedcustomers ndash not just in mature markets but around the world

What is driving consumer demand

Mobility culture

Against this backdrop auto executives appear to be focused on traditional concerns such as optimization of fuel-driven combustion engines and cost efficiency programs trusting that emerging markets will be the main growth drivers for a long time to come

This mindset could leave the main players highly vulnerable to new competitors eager to attract the customer of tomorrow by lsquoowningrsquo innovative concepts like mobility services and vehicle connectivity technologies Only time will tell if the respondentsrsquo views on a number of issues prove to be accurate

The survey participants believe that customersrsquo key priority is fuel efficiency which is in line with their expectation that sales for small and basic models will be particularly strong and although car ownership is predicted to remain high across all age groups mobility services such as car sharing are expected to see profitable growth within the next decade

KEY TRENDS TO 2025 Importance of key trends for the automotive industry Mobility culture

Innovative long-term concepts are not high on executivesrsquo agenda

The auto executivesrsquo agenda is dominated

Survey results

2015

56

2014

52

2013

43

2015

49

2014

40

2013

36

48

2015

42

2014

2013

na

36

2015

2014

26

2013

na

2015

18

18

20

14

41

2013

2015

18

2014

19

13

2013

16

2015

14

2014

20

2013

16

2015

18

20

14

16

2013

920

15

12

2014

38

2013

2015

8

13

2014

18

20

13

320

15

2014

5

2013

na

Market Downsizing Increasing use Rationalization Fuel cell OEM captive Innovative Mobility-as-a- Battery electric Connected car Self driving growth in and of platforms of production electric fi nancing urban vehicle service mobility technologies cars emerging optimization and in Europe mobility and leasing design Autonomous markets of the internal standardization and shifting of concepts cars

combustion of modules the production engine (ICE) to emerging

markets

by traditional trends such as growth in emerging markets optimizing the internal combustion engine standardized platforms and rationalized production

Newer industry-changing developments such as self-driving cars connectivity urban vehicle design and mobility services are still considered as relatively less important

KPMG viewpoint

The survey results show that auto players are adapting to regulatory restrictions on CO

2

emissions and are aware of the signifi cant impact of cost pressures and portfolio shifts

However in the face of growing environmental pressures it is surprising that battery electric mobility and fuel cell electric mobility have signifi cantly decreased in importance since the corresponding 2013 survey

The respondents may be underestimating the effect on their business models of changing mobility needs A majority seem to underplay the importance of connected car technologies and automated driving even though these developments are at an advanced stage and receiving plenty of industry and media attention

2 5 8 10 3 6 9 11 1 4 7

Note of respondents rating a key trend as extremely important Na ndash answer not included in respective year Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 9

KPMG insight

Concerns over vehicle quality have risen following several high-profi le product recalls with more and more customers now seeking vehicles with longer lifespans OEMs have to maintain a careful balance between product quality and cost optimization

The intense cost pressures on suppliers in recent years combined with the increased use of platform strategies have raised the risk of quality problems

Markets of all levels of maturity are seeing growing demand for state-of the-art technology in vehicles The relatively low priority assigned to connectivity does not resonate with the growing consumer expectation of ubiquitous access to mobile online services

The high emphasis on fuel effi ciency and enhanced vehicle lifespan shows the rising prevalence of the idea of total cost of ownership (TCO) for private consumers

Our respondents believe that consumers still have a strong desire

for comfort which is slightly at odds with the quest for better mileage as more energy is needed to power the associated technology In building more effi cient vehicles automakers will have to focus not just on the powertrain but also on the communications infrastructure

A further consequence of connected driving is concern over safety as travelers cede control of the vehicle

Finally vehicle styling and exterior has risen sharply in importance between 2013 and 2015 Regardless of what is on the inside customers still want to buy from trusted brands that reflect their own self-image

Understanding what consumers want

Gary Silberg The Americas Head of Automotive KPMG in the US

10 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

67 66 68

PRODUCT ISSUES Importance of vehicle features to consumer purchase decisions until 2020 Mobility culture

Purchasing choices not yet driven by innovative concepts and online services

1 2 3 4 5

Survey results

Fuel effi ciency Enhanced vehicle lifespan

53 45 19

2015 2014 2013 2015 2014 2013

6 7

Vehicle stylingexterior Plug-in solutions for navigation speech

recognition amp mobile internet devices (eg iPhone Blackberry)

40 34 23

2015 2014 2013

2038 39

2015 2014 2013

Safety innovation

52 48 46

2015 2014 2013

8

Vehicle-bound internet connectivity amp built-in technologies such as navigation speech

recognition etc

24 26 17

2015 2014 2013

Ergonomics amp comfort

49 36 47

2015 2014 2013

9

Telematicspersonal assistance services

19 16 11

2015 2014 2013

Environmental friendliness

41 38 35

2015 2014 2013

10

Use of alternative fuel technologies such as fuel

cell electric power bioshyfuels solar power etc

18 15 21

2015 2014 2013

Auto executives believe that consumers are still fixated on traditional product issues like fuel efficiency safety and comfort

One factor that has leapt in importance is enhanced vehicle lifespan which was ranked just eighth in 2013 but is now the second most important factor infl uencing the buying decision

Although both rank relatively low on consumersrsquo wish lists there is still a preference for plug-in rather than vehicle-bound internet connectivity solutions

The use of alternative fuel technologies remains a lower priority suggesting strongly that like last yearrsquos survey the consumer purchase decision is driven more by the wallet than the conscience

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Note of respondents rating a product issue as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 11

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 BGR ltFEFF04180437043f043e043b043704320430043904420435002004420435043704380020043d0430044104420440043e0439043a0438002c00200437043000200434043000200441044a0437043404300432043004420435002000410064006f00620065002000500044004600200434043e043a0443043c0435043d04420438002c0020043c0430043a04410438043c0430043b043d043e0020043f044004380433043e04340435043d04380020043704300020043f043e043a0430043704320430043d04350020043d043000200435043a04400430043d0430002c00200435043b0435043a04420440043e043d043d04300020043f043e044904300020043800200418043d044204350440043d04350442002e002000200421044a04370434043004340435043d043804420435002000500044004600200434043e043a0443043c0435043d044204380020043c043e0433043004420020043404300020044104350020043e0442043204300440044f0442002004410020004100630072006f00620061007400200438002000410064006f00620065002000520065006100640065007200200036002e00300020043800200441043b0435043404320430044904380020043204350440044104380438002egt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue 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false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

KEY TRENDS TO 2025 Importance of key trends for the automotive industry Mobility culture

Innovative long-term concepts are not high on executivesrsquo agenda

The auto executivesrsquo agenda is dominated

Survey results

2015

56

2014

52

2013

43

2015

49

2014

40

2013

36

48

2015

42

2014

2013

na

36

2015

2014

26

2013

na

2015

18

18

20

14

41

2013

2015

18

2014

19

13

2013

16

2015

14

2014

20

2013

16

2015

18

20

14

16

2013

920

15

12

2014

38

2013

2015

8

13

2014

18

20

13

320

15

2014

5

2013

na

Market Downsizing Increasing use Rationalization Fuel cell OEM captive Innovative Mobility-as-a- Battery electric Connected car Self driving growth in and of platforms of production electric fi nancing urban vehicle service mobility technologies cars emerging optimization and in Europe mobility and leasing design Autonomous markets of the internal standardization and shifting of concepts cars

combustion of modules the production engine (ICE) to emerging

markets

by traditional trends such as growth in emerging markets optimizing the internal combustion engine standardized platforms and rationalized production

Newer industry-changing developments such as self-driving cars connectivity urban vehicle design and mobility services are still considered as relatively less important

KPMG viewpoint

The survey results show that auto players are adapting to regulatory restrictions on CO

2

emissions and are aware of the signifi cant impact of cost pressures and portfolio shifts

However in the face of growing environmental pressures it is surprising that battery electric mobility and fuel cell electric mobility have signifi cantly decreased in importance since the corresponding 2013 survey

The respondents may be underestimating the effect on their business models of changing mobility needs A majority seem to underplay the importance of connected car technologies and automated driving even though these developments are at an advanced stage and receiving plenty of industry and media attention

2 5 8 10 3 6 9 11 1 4 7

Note of respondents rating a key trend as extremely important Na ndash answer not included in respective year Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 9

KPMG insight

Concerns over vehicle quality have risen following several high-profi le product recalls with more and more customers now seeking vehicles with longer lifespans OEMs have to maintain a careful balance between product quality and cost optimization

The intense cost pressures on suppliers in recent years combined with the increased use of platform strategies have raised the risk of quality problems

Markets of all levels of maturity are seeing growing demand for state-of the-art technology in vehicles The relatively low priority assigned to connectivity does not resonate with the growing consumer expectation of ubiquitous access to mobile online services

The high emphasis on fuel effi ciency and enhanced vehicle lifespan shows the rising prevalence of the idea of total cost of ownership (TCO) for private consumers

Our respondents believe that consumers still have a strong desire

for comfort which is slightly at odds with the quest for better mileage as more energy is needed to power the associated technology In building more effi cient vehicles automakers will have to focus not just on the powertrain but also on the communications infrastructure

A further consequence of connected driving is concern over safety as travelers cede control of the vehicle

Finally vehicle styling and exterior has risen sharply in importance between 2013 and 2015 Regardless of what is on the inside customers still want to buy from trusted brands that reflect their own self-image

Understanding what consumers want

Gary Silberg The Americas Head of Automotive KPMG in the US

10 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

67 66 68

PRODUCT ISSUES Importance of vehicle features to consumer purchase decisions until 2020 Mobility culture

Purchasing choices not yet driven by innovative concepts and online services

1 2 3 4 5

Survey results

Fuel effi ciency Enhanced vehicle lifespan

53 45 19

2015 2014 2013 2015 2014 2013

6 7

Vehicle stylingexterior Plug-in solutions for navigation speech

recognition amp mobile internet devices (eg iPhone Blackberry)

40 34 23

2015 2014 2013

2038 39

2015 2014 2013

Safety innovation

52 48 46

2015 2014 2013

8

Vehicle-bound internet connectivity amp built-in technologies such as navigation speech

recognition etc

24 26 17

2015 2014 2013

Ergonomics amp comfort

49 36 47

2015 2014 2013

9

Telematicspersonal assistance services

19 16 11

2015 2014 2013

Environmental friendliness

41 38 35

2015 2014 2013

10

Use of alternative fuel technologies such as fuel

cell electric power bioshyfuels solar power etc

18 15 21

2015 2014 2013

Auto executives believe that consumers are still fixated on traditional product issues like fuel efficiency safety and comfort

One factor that has leapt in importance is enhanced vehicle lifespan which was ranked just eighth in 2013 but is now the second most important factor infl uencing the buying decision

Although both rank relatively low on consumersrsquo wish lists there is still a preference for plug-in rather than vehicle-bound internet connectivity solutions

The use of alternative fuel technologies remains a lower priority suggesting strongly that like last yearrsquos survey the consumer purchase decision is driven more by the wallet than the conscience

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Note of respondents rating a product issue as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 11

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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(Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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FRA 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 GRE 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 HEB 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 HRV ltFEFF005a00610020007300740076006100720061006e006a0065002000500044004600200064006f006b0075006d0065006e0061007400610020006e0061006a0070006f0067006f0064006e0069006a006900680020007a00610020007000720069006b0061007a0020006e00610020007a00610073006c006f006e0075002c00200065002d0070006f0161007400690020006900200049006e007400650072006e0065007400750020006b006f00720069007300740069007400650020006f0076006500200070006f0073007400610076006b0065002e00200020005300740076006f00720065006e0069002000500044004600200064006f006b0075006d0065006e007400690020006d006f006700750020007300650020006f00740076006f00720069007400690020004100630072006f00620061007400200069002000410064006f00620065002000520065006100640065007200200036002e0030002000690020006b00610073006e0069006a0069006d0020007600650072007a0069006a0061006d0061002egt HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR ltFEFF004200720075006b00200064006900730073006500200069006e006e007300740069006c006c0069006e00670065006e0065002000740069006c002000e50020006f0070007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740065007200200073006f006d00200065007200200062006500730074002000650067006e0065007400200066006f007200200073006b006a00650072006d007600690073006e0069006e0067002c00200065002d0070006f007300740020006f006700200049006e007400650072006e006500740074002e0020005000440046002d0064006f006b0075006d0065006e00740065006e00650020006b0061006e002000e50070006e00650073002000690020004100630072006f00620061007400200065006c006c00650072002000410064006f00620065002000520065006100640065007200200036002e003000200065006c006c00650072002000730065006e006500720065002egt POL 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 PTB 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 RUM ltFEFF005500740069006c0069007a00610163006900200061006300650073007400650020007300650074010300720069002000700065006e007400720075002000610020006300720065006100200064006f00630075006d0065006e00740065002000410064006f006200650020005000440046002000610064006500630076006100740065002000700065006e0074007200750020006100660069015f006100720065006100200070006500200065006300720061006e002c0020007400720069006d0069007400650072006500610020007000720069006e00200065002d006d00610069006c0020015f0069002000700065006e00740072007500200049006e007400650072006e00650074002e002000200044006f00630075006d0065006e00740065006c00650020005000440046002000630072006500610074006500200070006f00740020006600690020006400650073006300680069007300650020006300750020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200036002e00300020015f00690020007600650072007300690075006e0069006c006500200075006c0074006500720069006f006100720065002egt RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

KPMG insight

Concerns over vehicle quality have risen following several high-profi le product recalls with more and more customers now seeking vehicles with longer lifespans OEMs have to maintain a careful balance between product quality and cost optimization

The intense cost pressures on suppliers in recent years combined with the increased use of platform strategies have raised the risk of quality problems

Markets of all levels of maturity are seeing growing demand for state-of the-art technology in vehicles The relatively low priority assigned to connectivity does not resonate with the growing consumer expectation of ubiquitous access to mobile online services

The high emphasis on fuel effi ciency and enhanced vehicle lifespan shows the rising prevalence of the idea of total cost of ownership (TCO) for private consumers

Our respondents believe that consumers still have a strong desire

for comfort which is slightly at odds with the quest for better mileage as more energy is needed to power the associated technology In building more effi cient vehicles automakers will have to focus not just on the powertrain but also on the communications infrastructure

A further consequence of connected driving is concern over safety as travelers cede control of the vehicle

Finally vehicle styling and exterior has risen sharply in importance between 2013 and 2015 Regardless of what is on the inside customers still want to buy from trusted brands that reflect their own self-image

Understanding what consumers want

Gary Silberg The Americas Head of Automotive KPMG in the US

10 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

67 66 68

PRODUCT ISSUES Importance of vehicle features to consumer purchase decisions until 2020 Mobility culture

Purchasing choices not yet driven by innovative concepts and online services

1 2 3 4 5

Survey results

Fuel effi ciency Enhanced vehicle lifespan

53 45 19

2015 2014 2013 2015 2014 2013

6 7

Vehicle stylingexterior Plug-in solutions for navigation speech

recognition amp mobile internet devices (eg iPhone Blackberry)

40 34 23

2015 2014 2013

2038 39

2015 2014 2013

Safety innovation

52 48 46

2015 2014 2013

8

Vehicle-bound internet connectivity amp built-in technologies such as navigation speech

recognition etc

24 26 17

2015 2014 2013

Ergonomics amp comfort

49 36 47

2015 2014 2013

9

Telematicspersonal assistance services

19 16 11

2015 2014 2013

Environmental friendliness

41 38 35

2015 2014 2013

10

Use of alternative fuel technologies such as fuel

cell electric power bioshyfuels solar power etc

18 15 21

2015 2014 2013

Auto executives believe that consumers are still fixated on traditional product issues like fuel efficiency safety and comfort

One factor that has leapt in importance is enhanced vehicle lifespan which was ranked just eighth in 2013 but is now the second most important factor infl uencing the buying decision

Although both rank relatively low on consumersrsquo wish lists there is still a preference for plug-in rather than vehicle-bound internet connectivity solutions

The use of alternative fuel technologies remains a lower priority suggesting strongly that like last yearrsquos survey the consumer purchase decision is driven more by the wallet than the conscience

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Note of respondents rating a product issue as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 11

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 300 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 300 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 BGR 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN ltFEFF004200720075006700200069006e0064007300740069006c006c0069006e006700650072006e0065002000740069006c0020006100740020006f007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e007400650072002c0020006400650072002000620065006400730074002000650067006e006500720020007300690067002000740069006c00200073006b00e60072006d007600690073006e0069006e0067002c00200065002d006d00610069006c0020006f006700200069006e007400650072006e00650074002e0020004400650020006f007000720065007400740065006400650020005000440046002d0064006f006b0075006d0065006e0074006500720020006b0061006e002000e50062006e00650073002000690020004100630072006f00620061007400200065006c006c006500720020004100630072006f006200610074002000520065006100640065007200200036002e00300020006f00670020006e0079006500720065002egt DEU ltFEFF00560065007200770065006e00640065006e0020005300690065002000640069006500730065002000450069006e007300740065006c006c0075006e00670065006e0020007a0075006d002000450072007300740065006c006c0065006e00200076006f006e002000410064006f006200650020005000440046002d0044006f006b0075006d0065006e00740065006e002c00200064006900650020006600fc00720020006400690065002000420069006c006400730063006800690072006d0061006e007a0065006900670065002c00200045002d004d00610069006c0020006f006400650072002000640061007300200049006e007400650072006e00650074002000760065007200770065006e006400650074002000770065007200640065006e00200073006f006c006c0065006e002e002000450072007300740065006c006c007400650020005000440046002d0044006f006b0075006d0065006e007400650020006b00f6006e006e0065006e0020006d006900740020004100630072006f00620061007400200075006e0064002000410064006f00620065002000520065006100640065007200200036002e00300020006f0064006500720020006800f600680065007200200067006500f600660066006e00650074002000770065007200640065006e002egt ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI ltFEFF004b00610073007500740061006700650020006e0065006900640020007300e400740074006500690064002000730065006c006c0069007300740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740069006400650020006c006f006f006d006900730065006b0073002c0020006d0069007300200073006f006200690076006100640020006b00f500690067006500200070006100720065006d0069006e006900200065006b007200610061006e0069006c0020006b007500760061006d006900730065006b0073002c00200065002d0070006f0073007400690067006100200073006100610074006d006900730065006b00730020006a006100200049006e007400650072006e00650074006900730020006100760061006c00640061006d006900730065006b0073002e00200020004c006f006f0064007500640020005000440046002d0064006f006b0075006d0065006e00740065002000730061006100740065002000610076006100640061002000700072006f006700720061006d006d006900640065006700610020004100630072006f0062006100740020006e0069006e0067002000410064006f00620065002000520065006100640065007200200036002e00300020006a00610020007500750065006d006100740065002000760065007200730069006f006f006e00690064006500670061002egt FRA 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 GRE ltFEFF03a703c103b703c303b903bc03bf03c003bf03b903ae03c303c403b5002003b103c503c403ad03c2002003c403b903c2002003c103c503b803bc03af03c303b503b903c2002003b303b903b1002003bd03b1002003b403b703bc03b903bf03c503c103b303ae03c303b503c403b5002003ad03b303b303c103b103c603b1002000410064006f006200650020005000440046002003c003bf03c5002003b503af03bd03b103b9002003ba03b103c42019002003b503be03bf03c703ae03bd002003ba03b103c403ac03bb03bb03b703bb03b1002003b303b903b1002003c003b103c103bf03c503c303af03b103c303b7002003c303c403b703bd002003bf03b803cc03bd03b7002c002003b303b903b100200065002d006d00610069006c002c002003ba03b103b9002003b303b903b1002003c403bf0020039403b903b1002d03b403af03ba03c403c503bf002e0020002003a403b10020005000440046002003ad03b303b303c103b103c603b1002003c003bf03c5002003ad03c703b503c403b5002003b403b703bc03b903bf03c503c103b303ae03c303b503b9002003bc03c003bf03c103bf03cd03bd002003bd03b1002003b103bd03bf03b903c703c403bf03cd03bd002003bc03b5002003c403bf0020004100630072006f006200610074002c002003c403bf002000410064006f00620065002000520065006100640065007200200036002e0030002003ba03b103b9002003bc03b503c403b103b303b503bd03ad03c303c403b503c103b503c2002003b503ba03b403cc03c303b503b903c2002egt HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL ltFEFF0055007300740061007700690065006e0069006100200064006f002000740077006f0072007a0065006e0069006100200064006f006b0075006d0065006e007400f300770020005000440046002000700072007a0065007a006e00610063007a006f006e00790063006800200064006f002000770079015b0077006900650074006c0061006e006900610020006e006100200065006b00720061006e00690065002c0020007700790073007901420061006e0069006100200070006f0063007a0074010500200065006c0065006b00740072006f006e00690063007a006e01050020006f00720061007a00200064006c006100200069006e007400650072006e006500740075002e002000200044006f006b0075006d0065006e0074007900200050004400460020006d006f017c006e00610020006f007400770069006500720061010700200077002000700072006f006700720061006d006900650020004100630072006f00620061007400200069002000410064006f00620065002000520065006100640065007200200036002e0030002000690020006e006f00770073007a0079006d002egt PTB 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 RUM ltFEFF005500740069006c0069007a00610163006900200061006300650073007400650020007300650074010300720069002000700065006e007400720075002000610020006300720065006100200064006f00630075006d0065006e00740065002000410064006f006200650020005000440046002000610064006500630076006100740065002000700065006e0074007200750020006100660069015f006100720065006100200070006500200065006300720061006e002c0020007400720069006d0069007400650072006500610020007000720069006e00200065002d006d00610069006c0020015f0069002000700065006e00740072007500200049006e007400650072006e00650074002e002000200044006f00630075006d0065006e00740065006c00650020005000440046002000630072006500610074006500200070006f00740020006600690020006400650073006300680069007300650020006300750020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200036002e00300020015f00690020007600650072007300690075006e0069006c006500200075006c0074006500720069006f006100720065002egt RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

67 66 68

PRODUCT ISSUES Importance of vehicle features to consumer purchase decisions until 2020 Mobility culture

Purchasing choices not yet driven by innovative concepts and online services

1 2 3 4 5

Survey results

Fuel effi ciency Enhanced vehicle lifespan

53 45 19

2015 2014 2013 2015 2014 2013

6 7

Vehicle stylingexterior Plug-in solutions for navigation speech

recognition amp mobile internet devices (eg iPhone Blackberry)

40 34 23

2015 2014 2013

2038 39

2015 2014 2013

Safety innovation

52 48 46

2015 2014 2013

8

Vehicle-bound internet connectivity amp built-in technologies such as navigation speech

recognition etc

24 26 17

2015 2014 2013

Ergonomics amp comfort

49 36 47

2015 2014 2013

9

Telematicspersonal assistance services

19 16 11

2015 2014 2013

Environmental friendliness

41 38 35

2015 2014 2013

10

Use of alternative fuel technologies such as fuel

cell electric power bioshyfuels solar power etc

18 15 21

2015 2014 2013

Auto executives believe that consumers are still fixated on traditional product issues like fuel efficiency safety and comfort

One factor that has leapt in importance is enhanced vehicle lifespan which was ranked just eighth in 2013 but is now the second most important factor infl uencing the buying decision

Although both rank relatively low on consumersrsquo wish lists there is still a preference for plug-in rather than vehicle-bound internet connectivity solutions

The use of alternative fuel technologies remains a lower priority suggesting strongly that like last yearrsquos survey the consumer purchase decision is driven more by the wallet than the conscience

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Note of respondents rating a product issue as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 11

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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(Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI ltFEFF0049007a006d0061006e0074006f006a00690065007400200161006f00730020006900650073007400610074012b006a0075006d00750073002c0020006c0061006900200076006500690064006f00740075002000410064006f00620065002000500044004600200064006f006b0075006d0065006e007400750073002c0020006b006100730020006900720020012b00700061016100690020007000690065006d01130072006f007400690020007201010064012b01610061006e0061006900200065006b00720101006e0101002c00200065002d00700061007300740061006d00200075006e00200069006e007400650072006e006500740061006d002e00200049007a0076006500690064006f006a006900650074002000500044004600200064006f006b0075006d0065006e007400750073002c0020006b006f002000760061007200200061007400760113007200740020006100720020004100630072006f00620061007400200075006e002000410064006f00620065002000520065006100640065007200200036002e0030002c0020006b0101002000610072012b00200074006f0020006a00610075006e0101006b0101006d002000760065007200730069006a0101006d002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL ltFEFF0055007300740061007700690065006e0069006100200064006f002000740077006f0072007a0065006e0069006100200064006f006b0075006d0065006e007400f300770020005000440046002000700072007a0065007a006e00610063007a006f006e00790063006800200064006f002000770079015b0077006900650074006c0061006e006900610020006e006100200065006b00720061006e00690065002c0020007700790073007901420061006e0069006100200070006f0063007a0074010500200065006c0065006b00740072006f006e00690063007a006e01050020006f00720061007a00200064006c006100200069006e007400650072006e006500740075002e002000200044006f006b0075006d0065006e0074007900200050004400460020006d006f017c006e00610020006f007400770069006500720061010700200077002000700072006f006700720061006d006900650020004100630072006f00620061007400200069002000410064006f00620065002000520065006100640065007200200036002e0030002000690020006e006f00770073007a0079006d002egt PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

139

139

139139139

139

139

139139139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139

139139

139

139

139139

139

139

139139

139

139

139139

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Segment prospects

The good news for the industry is that all segments are predicted to increase in volume Within the next two years global vehicle sales will pass the magical 100 million mark and continue to rise until the end of this decade on the back of increasing demand in emerging markets like China

Yet as the next page shows the majority of auto executives cling to the expectation of growth of small and basic vehicles ndash so-called budget cars ndash based upon a historical preference for such automobiles in developing countries Formal forecasts for light vehicle sales present a different picture compared to that of many of the executives involved in our survey with small and basic cars not predicted to increase their market share which is set to remain at just six percent

Conversely the compact-sized pick-up amp SUV and sports segments are forecast to outpace overall market growth rates up to 2020 with compact-sized being the real success story Almost one-third of all vehicles sold worldwide are expected to come from this segment in 2020 This puts the spotlight on recent efforts by global OEMs to invest in small budget cars in the BRICs and other high-growth territories with a question mark hanging over the long-term sales volume and margin potential for this segment

CAGR + 41

Light vehicle sales forecast by segment market share | 2011-2020

111m 107m

104m 100m

95m 90m

87m 84m

81m 77m

7

10

10

27

20

6

17

2 2

7

9

10

29

18

6

17

3 2

7

8

10

31

18

6

17

3 3

7

8

10

32

17

6

17 2 3

7

8

10

32

17

6

17

2 32

32 1 3

2 3 3

2 3

7

8

9

32

18

6

17

8

6

9

32

19

6

17

8

6

9

32

19

6

17

8

6

9

32

6

17

18

8

6

9

32

17

5

18

Unclassifi ed

MPV amp Van CAGR + 19

Pick-up amp SUVCAGR + 43

Sports CAGR + 45

Large (-Plus) CAGR + 33

Midsize CAGR + 30

Compact-size CAGR + 62

Sub-compact-size CAGR + 38

Small amp basic CAGR + 26

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Note - segment market share CAGR ndash compound annual growth rate Percentages may not add up to 100 due to rounding in million units Source KPMGrsquos Competence Centre Automotive LMC Automotive

12 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 BGR 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN ltFEFF004200720075006700200069006e0064007300740069006c006c0069006e006700650072006e0065002000740069006c0020006100740020006f007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e007400650072002c0020006400650072002000620065006400730074002000650067006e006500720020007300690067002000740069006c00200073006b00e60072006d007600690073006e0069006e0067002c00200065002d006d00610069006c0020006f006700200069006e007400650072006e00650074002e0020004400650020006f007000720065007400740065006400650020005000440046002d0064006f006b0075006d0065006e0074006500720020006b0061006e002000e50062006e00650073002000690020004100630072006f00620061007400200065006c006c006500720020004100630072006f006200610074002000520065006100640065007200200036002e00300020006f00670020006e0079006500720065002egt DEU ltFEFF00560065007200770065006e00640065006e0020005300690065002000640069006500730065002000450069006e007300740065006c006c0075006e00670065006e0020007a0075006d002000450072007300740065006c006c0065006e00200076006f006e002000410064006f006200650020005000440046002d0044006f006b0075006d0065006e00740065006e002c00200064006900650020006600fc00720020006400690065002000420069006c006400730063006800690072006d0061006e007a0065006900670065002c00200045002d004d00610069006c0020006f006400650072002000640061007300200049006e007400650072006e00650074002000760065007200770065006e006400650074002000770065007200640065006e00200073006f006c006c0065006e002e002000450072007300740065006c006c007400650020005000440046002d0044006f006b0075006d0065006e007400650020006b00f6006e006e0065006e0020006d006900740020004100630072006f00620061007400200075006e0064002000410064006f00620065002000520065006100640065007200200036002e00300020006f0064006500720020006800f600680065007200200067006500f600660066006e00650074002000770065007200640065006e002egt ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP ltFEFF005500740069006c0069006300650020006500730074006100200063006f006e0066006900670075007200610063006900f3006e0020007000610072006100200063007200650061007200200064006f00630075006d0065006e0074006f00730020005000440046002000640065002000410064006f0062006500200061006400650063007500610064006f007300200070006100720061002000760069007300750061006c0069007a00610063006900f3006e00200065006e002000700061006e00740061006c006c0061002c00200063006f007200720065006f00200065006c006500630074007200f3006e00690063006f0020006500200049006e007400650072006e00650074002e002000530065002000700075006500640065006e00200061006200720069007200200064006f00630075006d0065006e0074006f00730020005000440046002000630072006500610064006f007300200063006f006e0020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200036002e003000200079002000760065007200730069006f006e0065007300200070006f00730074006500720069006f007200650073002egt ETI 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN ltFEFF753b97624e0a3067306e8868793a3001307e305f306f96fb5b5030e130fc30eb308430a430f330bf30fc30cd30c330c87d4c7531306790014fe13059308b305f3081306e002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b9069305730663044307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200036002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a3067306f30d530a930f330c8306e57cb30818fbc307f3092884c306a308f305a300130d530a130a430eb30b530a430ba306f67005c0f9650306b306a308a307e30593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

41

34

31

22

11

21

10

16

9

4Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

Basic and small

Sub-compact

Compact

Midsize

Large amp Large Plus

Sports

Pick-up amp SUV

MPV amp Van

BRIC VIEWPOINT

81

51

11

24

26

27

79

75

53

15

TRIAD VIEWPOINT

CONSUMER DEMAND Development of vehicle size segments until 2020 Mobility culture

TRIAD executives no longer believe in large car segments ndash is this the end of a trend

75 16

Survey results

61 23

49 41

25 34

30 35

27 42

72 20 8

73 24 3

57 31 13

60 20 20

59 23 18

Note Percentages may not add up to 100 due to rounding Note of respondents expecting a car segmentrsquos market share to increaseremain the samedecrease until 2020

Increase Remain the same Decrease

Source KPMGrsquos Global Automotive Executive Survey 2015

1

Most auto executives from the TRIAD markets anticipate a significant drop in sales of larger cars which could signal the end of an era

BRIC executives are particularly optimistic with a majority expecting significant growth in all car segments although sales of small basic and medium-sized cars are predicted to increase faster than larger segments like limousines pick-ups amp SUVs

KPMG viewpoint

The expected fall in sales of larger vehicles is probably rather due to the stricter environmental restrictions than to any decline in popularity of bigger cars However buyers are likely to switch back as soon as oil prices drop further (a probable scenario) More effi cient powertrains like hybrids could also signifi cantly reduce the total cost of ownership

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

North American respondentsrsquo views are notable and surprising with 92 percent forecasting an increased demand for small and basic cars

In China on the other hand sports cars sales are expected to grow strongly reflecting a fast-maturing consumer with evermore sophisticated tastes

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 13

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

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Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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FRA 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HEB 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

100

CONSUMER PREFERENCES Importance of vehicle ownership for personal mobility needs

Survey results

According to the auto executives in our survey ndash regardless of which part of the value chain they represent ndash people of all ages will continue to desire their own set of wheels Although the younger generation is considered more open to alternative mobility solutions the respondents still feel that under-25-year-olds are keen to possess a vehicle

Even the fi nancial services and mobility service providers ndash whose business model is largely focused around vehicle usage rather than ownership ndash are suggesting that their customers will still want to own cars

KPMG viewpoint

Despite a universal preference for possessing onersquos own vehicle the main auto players need to consider carefully which user segments are most susceptible to alternatives With increasing vehicle restrictions in inner city areas and a greater awareness of total cost of ownership more and more customers are likely to reappraise whether to have their personal set of wheels Consequently all mobility stakeholders should be ready to offer easy-to-use price-competitive solutions

The under-25-year-olds may appear to be the most obvious target but with mature markets in particular experiencing aging populations those over 50 could also be seeking better and cheaper ways to get around

Importance of vehicle ownership undisputed across all age groups

Consumers from 25 to 35 years

Consumers from 35 to 50 years

Consumers 50+ years

Vehicle manufacturerrsquos viewpoint

Dealerrsquos viewpoint

Financial services and mobility services providerrsquos viewpoint

45

35

20

72

100

23

0

5

0

0

0

0

78

13

8

45

38

17

80

15

5

95

5

80

20

65

30

5

85

15

90

8

3

65

30

5

Consumers younger than 25 years

Important Neutral Not Important Neutral Not Important Neutral Not Important Neutral Not important important important important

Important Neutral Not important

Note Percentages may not add up to 100 due to rounding Important = Respondents answering with Not important = Respondents answering with Source KPMGrsquos Global Automotive Executive Survey 2015 ldquoextremely importantrdquo or ldquosomewhat importantrdquo ldquosomewhat unimportantrdquo or ldquonot at all importantrdquo

14 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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HEB 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HRV 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 HUN 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 ITA ltFEFF005500740069006c0069007a007a006100720065002000710075006500730074006500200069006d0070006f007300740061007a0069006f006e00690020007000650072002000630072006500610072006500200064006f00630075006d0065006e00740069002000410064006f00620065002000500044004600200070006900f9002000610064006100740074006900200070006500720020006c0061002000760069007300750061006c0069007a007a0061007a0069006f006e0065002000730075002000730063006800650072006d006f002c0020006c006100200070006f00730074006100200065006c0065007400740072006f006e0069006300610020006500200049006e007400650072006e00650074002e0020004900200064006f00630075006d0065006e007400690020005000440046002000630072006500610074006900200070006f00730073006f006e006f0020006500730073006500720065002000610070006500720074006900200063006f006e0020004100630072006f00620061007400200065002000410064006f00620065002000520065006100640065007200200036002e003000200065002000760065007200730069006f006e006900200073007500630063006500730073006900760065002egt JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

rsquo

ON-DEMAND MOBILITY Share of mobility services in 15 yearsrsquo time and time horizon for profitability by maturity cluster Mobility culture

TRIAD countries are setting the pace for on-demand mobility services such as car sharing

What do you believe will be the share of on-demand services in 15 years time

Below 5

6-15

16-25

more than 25

When do you expect mobility solutions to become an important source of profi t

They are already

In 5 years

In 10 years

gt 10 years

Never

TRIAD VIEWPOINT

42

12 11 35

34

27

27

4 8

BRIC VIEWPOINT

7

16 47

31

11

16

32

41

The rapid pace of urbanization in China should see a rise in car sharing over the next few years in Tier 1 cities with Generation Y consumers being the early adopters Nevertheless the size of this market will remain small with Chinese drivers not yet ready to follow countries like Germany because Chinese consumers still want to own cars

Car sharing in China has to compete with a diverse range of services such as short-term car rentals carpooling and peer-to-peer driver dispatch services As mobility concepts evolve we expect to see new approaches to car sharing much of which target the business-toshybusiness segment such as Volkswagens V Rentrsquos car pools that are marketed to various companies The Chinese market will develop slowly although the potential is high in a number of cities With limited financial and political support from local government the business case for car sharing is unproven

Mirko Hilsheimer Partner KPMG in China

KPMG Insight

The dawn of car sharing in China

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 15

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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FRA 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HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

rsquo

Focusing solely on the further development of the internal

combustion engine could mean the main global automakers fall behind

their more innovative rivals

Are companies betting on the right technologies

As the mobility eco-system becomes more complex the main players must choose between several different and in some cases confl icting technologies raising the stakes for critical investment decisions

By betting too much and too soon on future trends automakers could lose existing loyal customers But if they fail to gain a foothold in new mobility solutions they risk falling behind competitors

Although downsizing the internal combustion engine remains the number one investment priority such a route leaves automakers vulnerable to increasingly strict environmental regulations in both

established and high-growth markets Recent marketing initiatives supported by wide media coverage

suggest the age of innovative technologies like fuel cell vehicles and self-driving cars (a last evolutionary step of vehicle connectivity) is rapidly approaching Despite such signals most executives in our survey do not anticipate such developments becoming signifi cant in the next 20 years

16 | KPMG s Global Automotive Executive Survey 2015

Technological fit

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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FRA 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HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS ltFEFF04180441043f043e043b044c04370443043904420435002004340430043d043d044b04350020043d0430044104420440043e0439043a043800200434043b044f00200441043e043704340430043d0438044f00200434043e043a0443043c0435043d0442043e0432002000410064006f006200650020005000440046002c0020043c0430043a04410438043c0430043b044c043d043e0020043f043e04340445043e0434044f04490438044500200434043b044f0020044d043a04400430043d043d043e0433043e0020043f0440043e0441043c043e044204400430002c0020043f0435044004350441044b043b043a04380020043f043e0020044d043b0435043a04420440043e043d043d043e04390020043f043e044704420435002004380020044004300437043c043504490435043d0438044f0020043200200418043d044204350440043d043504420435002e002000200421043e043704340430043d043d044b04350020005000440046002d0434043e043a0443043c0435043d0442044b0020043c043e0436043d043e0020043e0442043a0440044b043204300442044c002004410020043f043e043c043e0449044c044e0020004100630072006f00620061007400200438002000410064006f00620065002000520065006100640065007200200036002e00300020043800200431043e043b043504350020043f043e04370434043d043804450020043204350440044104380439002egt SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

BRIC VIEWPOINT

Technological fit

Downsizing is still the number one investment priority

TRIAD VIEWPOINT

ICE downsizing

32

46

20 19

11 8

Fuel cell electrical vehicles

18

11

19

Hybrid fuel systems

15 13

29

Plug-in hybrid fuel systems

15

19

24

Battery electrifi ed vehicles1

INVESTMENT PRIORITIES Top powertrain technology investment areas up to 2020

Survey results

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

4241

33

23 2220 20 17

16 14 14 13 12

8 7

2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013

Despite the promise of new cleaner technologies automotive executives still believe downsizing the traditional internal combustion engine is likely to yield the best results in the short-to-medium-term

When it comes to alternatives fuel cells have moved ahead of battery electric systems to become the number two priority for investments until 2020

KPMG viewpoint

The interactive online version of this survey on kpmgcom

GAES2015 reveals regional differences among auto executivesrsquo opinions

In the past 12 months respondents from TRIAD have reduced their interest in ICE downsizing which is possibly an acknowledgment of more onerous regulations on CO

2 emissions in their

home markets This trend is even more profound among

the OEM TRIAD respondents who have already shifted their investment priority from ICE downsizing to hybrid fuel systems

Such laws are not as well-developed in some emerging markets hence the relatively higher priority assigned to ICE downsizing among the BRIC auto executives

Note of respondents rating a powertrain investment area as extremely important

Note 1 With and without range extender

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 17

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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HEB 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HRV 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 HUN ltFEFF00410020006b00e9007000650072006e00790151006e0020006d00650067006a0065006c0065006e00ed007400e9007300680065007a002c00200065002d006d00610069006c002000fc007a0065006e006500740065006b00620065006e002000e90073002000200049006e007400650072006e006500740065006e0020006800610073007a006e00e1006c00610074006e0061006b0020006c006500670069006e006b00e1006200620020006d0065006700660065006c0065006c0151002000410064006f00620065002000500044004600200064006f006b0075006d0065006e00740075006d006f006b0061007400200065007a0065006b006b0065006c0020006100200062006500e1006c006c00ed007400e10073006f006b006b0061006c0020006b00e90073007a00ed0074006800650074002e0020002000410020006c00e90074007200650068006f007a006f00740074002000500044004600200064006f006b0075006d0065006e00740075006d006f006b00200061007a0020004100630072006f006200610074002000e9007300200061007a002000410064006f00620065002000520065006100640065007200200036002e0030002c0020007600610067007900200061007a002000610074007400f3006c0020006b00e9007301510062006200690020007600650072007a006900f3006b006b0061006c0020006e00790069007400680061007400f3006b0020006d00650067002egt ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL ltFEFF0055007300740061007700690065006e0069006100200064006f002000740077006f0072007a0065006e0069006100200064006f006b0075006d0065006e007400f300770020005000440046002000700072007a0065007a006e00610063007a006f006e00790063006800200064006f002000770079015b0077006900650074006c0061006e006900610020006e006100200065006b00720061006e00690065002c0020007700790073007901420061006e0069006100200070006f0063007a0074010500200065006c0065006b00740072006f006e00690063007a006e01050020006f00720061007a00200064006c006100200069006e007400650072006e006500740075002e002000200044006f006b0075006d0065006e0074007900200050004400460020006d006f017c006e00610020006f007400770069006500720061010700200077002000700072006f006700720061006d006900650020004100630072006f00620061007400200069002000410064006f00620065002000520065006100640065007200200036002e0030002000690020006e006f00770073007a0079006d002egt PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Just 46 of engine production to be electric

The day when most of us drive fully electric cars is still on the distant horizon In 2020 less than one in 20 vehicles produced are forecast to be equipped with electrified powertrains the majority of which will be only slightly electrifi ed full or partial hybrids

While the survey respondents believe that plug-in hybrids will generate the most consumer demand by the end of this decade projections show that this segment will make up just one percent of total worldwide engine production in 2020

The excitement over the potential of fuel cell electric cars is also likely to be overhyped by 2020 a mere 001 percent of cars are likely to be equipped with this type of propulsion ndash which equates to approximately 16000 fuel cell drive units per annum

To find out more details about the electric engine production

prospects until 2020 by regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Electrified powertrain production forecast | 2011-2020

012

139

51m 49m 001 FullMild Hybrid 001

46m 001

014 007

218

055

080

297

46 Plug-in Hybrid

018 010

216

060

087

300

of total 41m

049

068

286

powertrain 001 Battery EVs

062

099

296

production (with amp without range extender) 36m

worldwide

Fuel Cell 31m

26m

21m 19m

12m

032

019

250

044

053

276

038

036

262

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source KPMGlsquos Competence Centre Automotive LMC Automotive Note - share of overall powertrain production volume in respective year in million units

18 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

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Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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FRA 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HRV 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 HUN 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 ITA ltFEFF005500740069006c0069007a007a006100720065002000710075006500730074006500200069006d0070006f007300740061007a0069006f006e00690020007000650072002000630072006500610072006500200064006f00630075006d0065006e00740069002000410064006f00620065002000500044004600200070006900f9002000610064006100740074006900200070006500720020006c0061002000760069007300750061006c0069007a007a0061007a0069006f006e0065002000730075002000730063006800650072006d006f002c0020006c006100200070006f00730074006100200065006c0065007400740072006f006e0069006300610020006500200049006e007400650072006e00650074002e0020004900200064006f00630075006d0065006e007400690020005000440046002000630072006500610074006900200070006f00730073006f006e006f0020006500730073006500720065002000610070006500720074006900200063006f006e0020004100630072006f00620061007400200065002000410064006f00620065002000520065006100640065007200200036002e003000200065002000760065007200730069006f006e006900200073007500630063006500730073006900760065002egt JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI ltFEFF0049007a006d0061006e0074006f006a00690065007400200161006f00730020006900650073007400610074012b006a0075006d00750073002c0020006c0061006900200076006500690064006f00740075002000410064006f00620065002000500044004600200064006f006b0075006d0065006e007400750073002c0020006b006100730020006900720020012b00700061016100690020007000690065006d01130072006f007400690020007201010064012b01610061006e0061006900200065006b00720101006e0101002c00200065002d00700061007300740061006d00200075006e00200069006e007400650072006e006500740061006d002e00200049007a0076006500690064006f006a006900650074002000500044004600200064006f006b0075006d0065006e007400750073002c0020006b006f002000760061007200200061007400760113007200740020006100720020004100630072006f00620061007400200075006e002000410064006f00620065002000520065006100640065007200200036002e0030002c0020006b0101002000610072012b00200074006f0020006a00610075006e0101006b0101006d002000760065007200730069006a0101006d002egt NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

Non-plug-in hybrids (FullMildMicro)

4

Plug-in hybrids1

Battery electrified vehicles12

Fuel cell electrical vehicles3

KPMGrsquos Global Automotive Executive Survey 2015 | 19

When asked to rank the most popular form of electric technology by 2020 respondents chose plug-in hybrids although the gap with battery electrified cars has closed to one percentage point

Fuel cell electric vehicles are the biggest risers jumping from just 17 percent in 2013 to 27 percent in this yearrsquos survey

Plug-in hybrids are seen as number one although losing groundSurvey results

Note of respondents rating an electrified propulsion technology as extremely importantNote 1 With and without range extenderSource KPMGrsquos Global Automotive Executive Survey 2015

2015

2014

2013

30

35

36

2015

2014

2013

29

31

28

2015

2014

2013

27

24

17

2015

2014

2013

16

12

20

Technological fitCONSUMER DEMANDElectrified propulsion technology attracting the most demand until 2020

KPMG viewpoint

The announcement that amongst others Toyota is to market a fuel cell electric vehicle in 2015 has generated considerable media attention recently but as our powertrain forecasts predict this technology is unlikely to gain more than a tiny proportion of the overall market until 2020

Without a comprehensive refueling infrastructure and eco-friendly production of hydrogen from renewable energy sources fuel cells remain a long-term aspiration rather than a commercial reality in the foreseeable future ndash especially in less developed regions

To find out more details about the views of our respondents by

stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcomGAES2015

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 300 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 300 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE ltFEFF005400610074006f0020006e006100730074006100760065006e00ed00200070006f0075017e0069006a007400650020006b0020007600790074007600e101590065006e00ed00200064006f006b0075006d0065006e0074016f002000410064006f006200650020005000440046002c0020006b00740065007200e90020007300650020006e0065006a006c00e90070006500200068006f006400ed002000700072006f0020007a006f006200720061007a006f007600e1006e00ed0020006e00610020006f006200720061007a006f007600630065002c00200070006f007300ed006c00e1006e00ed00200065002d006d00610069006c0065006d00200061002000700072006f00200069006e007400650072006e00650074002e002000200056007900740076006f01590065006e00e900200064006f006b0075006d0065006e007400790020005000440046002000620075006400650020006d006f017e006e00e90020006f007400650076015900ed007400200076002000700072006f006700720061006d0065006300680020004100630072006f00620061007400200061002000410064006f00620065002000520065006100640065007200200036002e0030002000610020006e006f0076011b006a016100ed00630068002egt DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 FRA 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GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR ltFEFF04120438043a043e0440043804410442043e043204430439044204350020044604560020043f043004400430043c043504420440043800200434043b044f0020044104420432043e04400435043d043d044f00200434043e043a0443043c0435043d044204560432002000410064006f006200650020005000440046002c0020044f043a0456043d04300439043a04400430044904350020043f045604340445043e0434044f0442044c00200434043b044f0020043f0435044004350433043b044f043404430020043700200435043a04400430043d044300200442043000200406043d044204350440043d043504420443002e00200020042104420432043e04400435043d045600200434043e043a0443043c0435043d0442043800200050004400460020043c043e0436043d04300020043204560434043a0440043804420438002004430020004100630072006f006200610074002004420430002000410064006f00620065002000520065006100640065007200200036002e0030002004300431043e0020043f04560437043d04560448043e04570020043204350440044104560457002egt gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

KPMG insight

Chinarsquos government and automotive industry both have high hopes that electric cars will signal a new era in the worldrsquos fastest growing car market Not content with catching up with more established players in traditional combustion engine technology China aspires to leapfrog rivals to become the premier market for e-mobility With hard work and not a little innovation forecasts suggest that China will meet this objective by 2020

Vehicle and battery cell production is still in its early stages with a need for Chinese firms to improve capabilities in design and development of core e-vehicle components Current electric models from domestic OEMs have not proven particularly popular with consumers Regardless of these humble beginnings China has by far the worldrsquos largest RampD budget indicating a patient mid-to-long-term perspective

Despite strong political funding for programs across multiple cities and a huge population seeking greater

mobility demand for electric-powered autos is currently restricted to small fleets for a few government institutions However growing pressures from air pollution rising fuel costs strict emission standards and rapid urbanization should ensure that the huge potential for electric cars is eventually realized although this will require further innovation and disruption across the automotive eco-system

Whatrsquos next for e-mobility in China

Danny Le Partner KPMG in China

20 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 BGR 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP ltFEFF005500740069006c0069006300650020006500730074006100200063006f006e0066006900670075007200610063006900f3006e0020007000610072006100200063007200650061007200200064006f00630075006d0065006e0074006f00730020005000440046002000640065002000410064006f0062006500200061006400650063007500610064006f007300200070006100720061002000760069007300750061006c0069007a00610063006900f3006e00200065006e002000700061006e00740061006c006c0061002c00200063006f007200720065006f00200065006c006500630074007200f3006e00690063006f0020006500200049006e007400650072006e00650074002e002000530065002000700075006500640065006e00200061006200720069007200200064006f00630075006d0065006e0074006f00730020005000440046002000630072006500610064006f007300200063006f006e0020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200036002e003000200079002000760065007200730069006f006e0065007300200070006f00730074006500720069006f007200650073002egt ETI 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 FRA 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 GRE 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 HEB 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 HRV ltFEFF005a00610020007300740076006100720061006e006a0065002000500044004600200064006f006b0075006d0065006e0061007400610020006e0061006a0070006f0067006f0064006e0069006a006900680020007a00610020007000720069006b0061007a0020006e00610020007a00610073006c006f006e0075002c00200065002d0070006f0161007400690020006900200049006e007400650072006e0065007400750020006b006f00720069007300740069007400650020006f0076006500200070006f0073007400610076006b0065002e00200020005300740076006f00720065006e0069002000500044004600200064006f006b0075006d0065006e007400690020006d006f006700750020007300650020006f00740076006f00720069007400690020004100630072006f00620061007400200069002000410064006f00620065002000520065006100640065007200200036002e0030002000690020006b00610073006e0069006a0069006d0020007600650072007a0069006a0061006d0061002egt HUN 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 ITA ltFEFF005500740069006c0069007a007a006100720065002000710075006500730074006500200069006d0070006f007300740061007a0069006f006e00690020007000650072002000630072006500610072006500200064006f00630075006d0065006e00740069002000410064006f00620065002000500044004600200070006900f9002000610064006100740074006900200070006500720020006c0061002000760069007300750061006c0069007a007a0061007a0069006f006e0065002000730075002000730063006800650072006d006f002c0020006c006100200070006f00730074006100200065006c0065007400740072006f006e0069006300610020006500200049006e007400650072006e00650074002e0020004900200064006f00630075006d0065006e007400690020005000440046002000630072006500610074006900200070006f00730073006f006e006f0020006500730073006500720065002000610070006500720074006900200063006f006e0020004100630072006f00620061007400200065002000410064006f00620065002000520065006100640065007200200036002e003000200065002000760065007200730069006f006e006900200073007500630063006500730073006900760065002egt JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

E-CAR MARKET PENETRATION Share of electrified vehicles among overall new car registrations by 2025 Technological fit

Survey results At least every tenth vehicle sold in 2025 to be electric according to auto execsrsquo opinions

Western European viewpoint

1-5

6-10

11-15

16-20

21-25

Nearly half of all North American respondents expect the share of e-vehicles to be between 16 and 20 percent of overall new car registrations in 10 yearsrsquo time

This is a more optimistic view than Western European auto executives have nearly half of whom believe that the share will be between 11 and 15 percent

Chinese automakers express similar sentiment More than two-thirds of these respondents believe the share of e-vehicles in their home country will be between 11 and 15 percent by 2025

KPMG viewpoint

Electric technology has yet to deliver on its early promise and consequently most companies have focused their efforts on improving ICE effi ciency

Nevertheless the results show that the auto executives still feel that e-cars can thrive although investors continue to face considerable uncertaintyThe biggest drivers for e-mobility are likely to be regulations and tax incentives rather than actual consumer demand as governments in emerging as well as mature markets strive to create low carbon economies

North American viewpoint

1-5

6-10

11-15

16-20

21-25

5

20

43

18

14

0

12

28

48

12

Chinese viewpoint

41-5

206-10

6811-15

816-20

21-25 0

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 21

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN 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 DEU ltFEFF00560065007200770065006e00640065006e0020005300690065002000640069006500730065002000450069006e007300740065006c006c0075006e00670065006e0020007a0075006d002000450072007300740065006c006c0065006e00200076006f006e002000410064006f006200650020005000440046002d0044006f006b0075006d0065006e00740065006e002c00200064006900650020006600fc00720020006400690065002000420069006c006400730063006800690072006d0061006e007a0065006900670065002c00200045002d004d00610069006c0020006f006400650072002000640061007300200049006e007400650072006e00650074002000760065007200770065006e006400650074002000770065007200640065006e00200073006f006c006c0065006e002e002000450072007300740065006c006c007400650020005000440046002d0044006f006b0075006d0065006e007400650020006b00f6006e006e0065006e0020006d006900740020004100630072006f00620061007400200075006e0064002000410064006f00620065002000520065006100640065007200200036002e00300020006f0064006500720020006800f600680065007200200067006500f600660066006e00650074002000770065007200640065006e002egt ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e40020006e00e40079007400f60073007400e40020006c0075006b0065006d0069007300650065006e002c0020007300e40068006b00f60070006f0073007400690069006e0020006a006100200049006e007400650072006e0065007400690069006e0020007400610072006b006f006900740065007400740075006a0061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200036002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

KPMG insight

When can we expect to see perfect self-driving cars Most available forecasts suggest that by 2020 up to 10 percent of all mass-produced vehicles will be driverless

In the meantime we are already enjoying many of the benefi ts of autonomous driving including parking assistance alerts for approaching vehicles people and objects traffi c congestion assistance lane departure warnings and cruise control There is also an increasing convergence of sensor- and connectivity-based solutions that mimic the human senses to instruct the car to act as its driver would choose and make decisions based upon information from the surrounding environment In this respect self-driving cars can be positioned as a safer form of motoring reducing the risk of driver error

These vehicles are far more than just another way of getting around They generate huge amounts of valuable data about travelersrsquo habits and characteristics creating new

business opportunities to target consumers with infotainment education healthcare and other services

Before such vehicles can become ubiquitous a number of issues must be clarified such as cost legal responsibility security and privacy The substantial investment required for this technology could arguably have a very positive return in terms of increased safety higher fuel effi ciency and shorter more productive journeys where occupants not only get to their destination faster but can also work along the way

As the future rapidly becomes todayrsquos lsquonew normalrsquo and consumers get accustomed to hands-free driving process power ndash rather than horsepower ndash may become the biggest differentiator

Seung Hoon Wi Asia Pacifi c Head of Automotive KPMG in Korea

Self-driving is not a future dream but todayrsquos reality

22 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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(Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH ltFEFF004e006100750064006f006b0069007400650020016100690075006f007300200070006100720061006d006500740072007500730020006e006f0072011700640061006d00690020006b0075007200740069002000410064006f00620065002000500044004600200064006f006b0075006d0065006e007400750073002c0020006b00750072006900650020006c0061006200690061007500730069006100690020007000720069007400610069006b00790074006900200072006f006400790074006900200065006b00720061006e0065002c00200065006c002e002000700061016100740075006900200061007200200069006e007400650072006e0065007400750069002e0020002000530075006b0075007200740069002000500044004600200064006f006b0075006d0065006e007400610069002000670061006c006900200062016b007400690020006100740069006400610072006f006d00690020004100630072006f006200610074002000690072002000410064006f00620065002000520065006100640065007200200036002e0030002000610072002000760117006c00650073006e0117006d00690073002000760065007200730069006a006f006d00690073002egt LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB ltFEFF005500740069006c0069007a006500200065007300730061007300200063006f006e00660069006700750072006100e700f50065007300200064006500200066006f0072006d00610020006100200063007200690061007200200064006f00630075006d0065006e0074006f0073002000410064006f0062006500200050004400460020006d00610069007300200061006400650071007500610064006f00730020007000610072006100200065007800690062006900e700e3006f0020006e0061002000740065006c0061002c0020007000610072006100200065002d006d00610069006c007300200065002000700061007200610020006100200049006e007400650072006e00650074002e0020004f007300200064006f00630075006d0065006e0074006f00730020005000440046002000630072006900610064006f007300200070006f00640065006d0020007300650072002000610062006500720074006f007300200063006f006d0020006f0020004100630072006f006200610074002000650020006f002000410064006f00620065002000520065006100640065007200200036002e0030002000650020007600650072007300f50065007300200070006f00730074006500720069006f007200650073002egt RUM 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 RUS ltFEFF04180441043f043e043b044c04370443043904420435002004340430043d043d044b04350020043d0430044104420440043e0439043a043800200434043b044f00200441043e043704340430043d0438044f00200434043e043a0443043c0435043d0442043e0432002000410064006f006200650020005000440046002c0020043c0430043a04410438043c0430043b044c043d043e0020043f043e04340445043e0434044f04490438044500200434043b044f0020044d043a04400430043d043d043e0433043e0020043f0440043e0441043c043e044204400430002c0020043f0435044004350441044b043b043a04380020043f043e0020044d043b0435043a04420440043e043d043d043e04390020043f043e044704420435002004380020044004300437043c043504490435043d0438044f0020043200200418043d044204350440043d043504420435002e002000200421043e043704340430043d043d044b04350020005000440046002d0434043e043a0443043c0435043d0442044b0020043c043e0436043d043e0020043e0442043a0440044b043204300442044c002004410020043f043e043c043e0449044c044e0020004100630072006f00620061007400200438002000410064006f00620065002000520065006100640065007200200036002e00300020043800200431043e043b043504350020043f043e04370434043d043804450020043204350440044104380439002egt SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

CONNECTIVITY THE NEXT BIG THING Technological fit Self-driving cars the final evolutionary step of connectivity

BMW

Daimler

General Motors

Volkswagen Group

Toyota

Tesla

Ford

Honda

FCA

HyundaiKia

Chery

Nissan

PSA

Renault

Google

Isuzu Motors

Mitsubishi

Suzuki

11

20

25

43

8

4

60

28

28

20

17

33

29

21

52

5-10 years

Western European

viewpoint

North A

merican

viewpoint

Chinese

viewpoint

Mature A

sian view

point

5-10 years

5-10 years 0

5-10 years

11-20 years

11-20 years

11-20 years

11-20 years

21+ years

21+ years

21+ years

21+ years

never

never

never

never

245

155

115

100

95

60

55

45

35

35

10

10

10

10

05

05

05

05

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Note Industry players ranked 1 according to respondents sorted in descending order Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Autonomous drivingrsquos breakthrough is Global OEMs seen as leading in the field of further away according to auto executives connectivity and self-driving cars Survey results

A commercial market for self-driving cars seems no closer even though initial pilots have produced positive results with plenty of coverage in the mass media

Auto executives from Western Europe North America and China are the most pessimistic and feel it will take more than 20 years before these vehicles are commonly seen on our roads In Japan and Korea there is greater hope with an expected time span of 11 to 20 years

KPMG viewpoint

Self-driving cars are the final step of true connectivity enabling car occupants to treat their vehicles as true extensions of their homes offices or smartphones freed from the responsibility of driving The daily commute will offer customer relationship owners incredible opportunities to tap into additional revenue streams

This market will not succeed without overcoming critical legal and liability issues associated with driverless motoring

With potentially fierce competition from information communication and technology (ICT) companies traditional OEMs must ask themselves whether they are in-line to be the pace setters in this sector

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 23

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR ltFEFF004200720075006b00200064006900730073006500200069006e006e007300740069006c006c0069006e00670065006e0065002000740069006c002000e50020006f0070007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740065007200200073006f006d00200065007200200062006500730074002000650067006e0065007400200066006f007200200073006b006a00650072006d007600690073006e0069006e0067002c00200065002d0070006f007300740020006f006700200049006e007400650072006e006500740074002e0020005000440046002d0064006f006b0075006d0065006e00740065006e00650020006b0061006e002000e50070006e00650073002000690020004100630072006f00620061007400200065006c006c00650072002000410064006f00620065002000520065006100640065007200200036002e003000200065006c006c00650072002000730065006e006500720065002egt POL ltFEFF0055007300740061007700690065006e0069006100200064006f002000740077006f0072007a0065006e0069006100200064006f006b0075006d0065006e007400f300770020005000440046002000700072007a0065007a006e00610063007a006f006e00790063006800200064006f002000770079015b0077006900650074006c0061006e006900610020006e006100200065006b00720061006e00690065002c0020007700790073007901420061006e0069006100200070006f0063007a0074010500200065006c0065006b00740072006f006e00690063007a006e01050020006f00720061007a00200064006c006100200069006e007400650072006e006500740075002e002000200044006f006b0075006d0065006e0074007900200050004400460020006d006f017c006e00610020006f007400770069006500720061010700200077002000700072006f006700720061006d006900650020004100630072006f00620061007400200069002000410064006f00620065002000520065006100640065007200200036002e0030002000690020006e006f00770073007a0079006d002egt PTB 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 RUM ltFEFF005500740069006c0069007a00610163006900200061006300650073007400650020007300650074010300720069002000700065006e007400720075002000610020006300720065006100200064006f00630075006d0065006e00740065002000410064006f006200650020005000440046002000610064006500630076006100740065002000700065006e0074007200750020006100660069015f006100720065006100200070006500200065006300720061006e002c0020007400720069006d0069007400650072006500610020007000720069006e00200065002d006d00610069006c0020015f0069002000700065006e00740072007500200049006e007400650072006e00650074002e002000200044006f00630075006d0065006e00740065006c00650020005000440046002000630072006500610074006500200070006f00740020006600690020006400650073006300680069007300650020006300750020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200036002e00300020015f00690020007600650072007300690075006e0069006c006500200075006c0074006500720069006f006100720065002egt RUS 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 SKY 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 SLV ltFEFF005400650020006e006100730074006100760069007400760065002000750070006f0072006100620069007400650020007a00610020007500730074007600610072006a0061006e006a006500200064006f006b0075006d0065006e0074006f0076002000410064006f006200650020005000440046002c0020006b006900200073006f0020006e0061006a007000720069006d00650072006e0065006a016100690020007a00610020007000720069006b0061007a0020006e00610020007a00610073006c006f006e0075002c00200065002d0070006f01610074006f00200069006e00200069006e007400650072006e00650074002e00200020005500730074007600610072006a0065006e006500200064006f006b0075006d0065006e0074006500200050004400460020006a00650020006d006f0067006f010d00650020006f0064007000720065007400690020007a0020004100630072006f00620061007400200069006e002000410064006f00620065002000520065006100640065007200200036002e003000200069006e0020006e006f00760065006a01610069006d002egt SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

rsquo

The next big thing ndash a look into the future

Communication technologies such as car-2-car car-2-infrastructure or car-2-home may bring signifi cant benefits to consumers but these factors known collectively as the lsquointernet of thingsrsquo simply represent a commodity To capture the real value of connectivity vehicle manufacturers have to use the power of data to get inside customersrsquo heads understand what drives their behavior and adapt business models to ever-smaller target groups of like-minded individuals

Connected car technologies can be a crucial interactive media especially when linked to location offering not just traffic guidance but also useful local retail or leisure options personalized news and entertainment and other services ndash all of which can provide a healthy revenue stream Ultimately it should be possible to predict what products and services the customer is most likely to want

To move to the lucrative upper right-hand quadrant (refer to chart on page 25) ndash the lsquoInternet of Behavior

ndash and harvest the undoubted potential of data OEMs should consider customersrsquo lives as a whole rather than viewing them as lsquodriversrsquo only towards building a personal relationship to increase loyalty

Technology also enables predictive product analytics where automakers can constantly monitor vehicle performance and component wear and tear Such a strategy is supported by modularization and standardization which enables more cost-effi cient production and makes it easier to replace or adapt different parts of the automobile

As a warning development cycles can differ widely between hardware and software so these two areas should be managed separately with a central interface to ensure compatibility

Dieter Becker Global Head of Automotive KPMG International

Automakers need to understand what drives customersrsquo behavior

24 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 300 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 300 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 BGR 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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 FRA 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 GRE ltFEFF03a703c103b703c303b903bc03bf03c003bf03b903ae03c303c403b5002003b103c503c403ad03c2002003c403b903c2002003c103c503b803bc03af03c303b503b903c2002003b303b903b1002003bd03b1002003b403b703bc03b903bf03c503c103b303ae03c303b503c403b5002003ad03b303b303c103b103c603b1002000410064006f006200650020005000440046002003c003bf03c5002003b503af03bd03b103b9002003ba03b103c42019002003b503be03bf03c703ae03bd002003ba03b103c403ac03bb03bb03b703bb03b1002003b303b903b1002003c003b103c103bf03c503c303af03b103c303b7002003c303c403b703bd002003bf03b803cc03bd03b7002c002003b303b903b100200065002d006d00610069006c002c002003ba03b103b9002003b303b903b1002003c403bf0020039403b903b1002d03b403af03ba03c403c503bf002e0020002003a403b10020005000440046002003ad03b303b303c103b103c603b1002003c003bf03c5002003ad03c703b503c403b5002003b403b703bc03b903bf03c503c103b303ae03c303b503b9002003bc03c003bf03c103bf03cd03bd002003bd03b1002003b103bd03bf03b903c703c403bf03cd03bd002003bc03b5002003c403bf0020004100630072006f006200610074002c002003c403bf002000410064006f00620065002000520065006100640065007200200036002e0030002003ba03b103b9002003bc03b503c403b103b303b503bd03ad03c303c403b503c103b503c2002003b503ba03b403cc03c303b503b903c2002egt HEB 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 HRV ltFEFF005a00610020007300740076006100720061006e006a0065002000500044004600200064006f006b0075006d0065006e0061007400610020006e0061006a0070006f0067006f0064006e0069006a006900680020007a00610020007000720069006b0061007a0020006e00610020007a00610073006c006f006e0075002c00200065002d0070006f0161007400690020006900200049006e007400650072006e0065007400750020006b006f00720069007300740069007400650020006f0076006500200070006f0073007400610076006b0065002e00200020005300740076006f00720065006e0069002000500044004600200064006f006b0075006d0065006e007400690020006d006f006700750020007300650020006f00740076006f00720069007400690020004100630072006f00620061007400200069002000410064006f00620065002000520065006100640065007200200036002e0030002000690020006b00610073006e0069006a0069006d0020007600650072007a0069006a0061006d0061002egt HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR ltFEFF004200720075006b00200064006900730073006500200069006e006e007300740069006c006c0069006e00670065006e0065002000740069006c002000e50020006f0070007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740065007200200073006f006d00200065007200200062006500730074002000650067006e0065007400200066006f007200200073006b006a00650072006d007600690073006e0069006e0067002c00200065002d0070006f007300740020006f006700200049006e007400650072006e006500740074002e0020005000440046002d0064006f006b0075006d0065006e00740065006e00650020006b0061006e002000e50070006e00650073002000690020004100630072006f00620061007400200065006c006c00650072002000410064006f00620065002000520065006100640065007200200036002e003000200065006c006c00650072002000730065006e006500720065002egt POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

How do we cut through complexityView the interactive version of this survey online and filter the results based on your own preferences | kpmgcomGAES2015

KPMGrsquos Global Automotive Executive Survey 2015 | 25

Technological fitTHE NEXT BIG THINGIncreased connectivity means increasing convergences between largely separated industry sectors

Prox

imit

y to

cur

rent

bus

ines

s m

odel

s

Revenue potential for new business models

High (vehicle

dependent)

Moderate Very high

Low (vehicle

independent)Facebook

Twitter

News

VOIP

Social Networking amp Communication

Car-2-Infrastructure

Safety amp Efficiency Features

Car-2-Car

Trafficmanagement

Collisionavoidance

Behavior based cross-selling

Location based cross-selling

Predictive Consumer Analytics

Predictive ProductAnalytics

Car-2-OEM

Continuous monitoring of wear amp tear components

Real-time residual value calculation

INTER

NET O

F B

EH

AV

IOR

INTER

NET O

F TH

ING

S

Source KPMG Competence Centre Automotive

As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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 ETI 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH ltFEFF004e006100750064006f006b0069007400650020016100690075006f007300200070006100720061006d006500740072007500730020006e006f0072011700640061006d00690020006b0075007200740069002000410064006f00620065002000500044004600200064006f006b0075006d0065006e007400750073002c0020006b00750072006900650020006c0061006200690061007500730069006100690020007000720069007400610069006b00790074006900200072006f006400790074006900200065006b00720061006e0065002c00200065006c002e002000700061016100740075006900200061007200200069006e007400650072006e0065007400750069002e0020002000530075006b0075007200740069002000500044004600200064006f006b0075006d0065006e007400610069002000670061006c006900200062016b007400690020006100740069006400610072006f006d00690020004100630072006f006200610074002000690072002000410064006f00620065002000520065006100640065007200200036002e0030002000610072002000760117006c00650073006e0117006d00690073002000760065007200730069006a006f006d00690073002egt LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed 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As more players join the mobility market it is vital for companies to

both diversify and differentiate to maintain success

Is the industry set for an unstable mobility eco-system

The unpredictability of new technologies makes it hard to plan for disruptive changes such as e-vehicles connectivity and autonomous driving However an evolving mobility culture which eschews traditional car ownership in favor of more flexible options means that automotive companies must prepare for lsquoblack swansrsquo on the horizon

As the mobility eco-system broadens automakers can no longer rely on organic growth and will have to build strategic alliances

crossing sector boundaries and think lsquoout of the boxrsquo to find ways to intelligently expand value chains and diversify A unique brand becomes even more critical to differentiate yourself in a market teeming with new competitors from other sectors and offering customers a wider range of products and services

26 | KPMGrsquos Global Automotive Executive Survey 2015

Business model readiness

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 300 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 300 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 BGR 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 FRA 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GRE 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 HEB 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 HRV 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 HUN 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ITA ltFEFF005500740069006c0069007a007a006100720065002000710075006500730074006500200069006d0070006f007300740061007a0069006f006e00690020007000650072002000630072006500610072006500200064006f00630075006d0065006e00740069002000410064006f00620065002000500044004600200070006900f9002000610064006100740074006900200070006500720020006c0061002000760069007300750061006c0069007a007a0061007a0069006f006e0065002000730075002000730063006800650072006d006f002c0020006c006100200070006f00730074006100200065006c0065007400740072006f006e0069006300610020006500200049006e007400650072006e00650074002e0020004900200064006f00630075006d0065006e007400690020005000440046002000630072006500610074006900200070006f00730073006f006e006f0020006500730073006500720065002000610070006500720074006900200063006f006e0020004100630072006f00620061007400200065002000410064006f00620065002000520065006100640065007200200036002e003000200065002000760065007200730069006f006e006900200073007500630063006500730073006900760065002egt JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

Business model readinessBLACK SWAN AHEAD Likelihood of major business model disruption by 2020

No major change ahead as OEMs are expected to continue to own customer relationships

How likely is a major business model Who will be the lsquoownerrsquo of the customer disruption in the next 5 years relationship in the next 5 years

3 43 Extremely Somewhat 72 2

likely unlikely OEMs Other

4 Connectivity

provider

8 Mobility solutions provider

9 32 14 15 Somewhat Neutral Not likely Retailers

likely at all

Note Percentages may not add up to 100 due to rounding Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Over half of all auto executives think it is somewhat unlikely or not likely at all that a major disruption to existing business models will occur in the next fi ve years with just approximately one in 10 expecting a major change

This conservative outlook extends to expectations of market dominance with almost three out of four respondents expecting OEMs to continue owning the customer relationship until 2020

KPMG viewpoint

As an alternative perspective nearly one-third confess to being neutral over the likelihood of a disruptive event implying that change is at least at the back of many executivesrsquo minds

Breakthroughs such as mobility services and e-vehicles may be a few years away but that does not mean that these potential lsquoblack swansrsquo can be taken off the senior management agenda

Arguably the current period of stability could be a great opportunity to prepare for a very different future If the main auto companies fail to get ready now they risk being overtaken by new competitors such as connectivity service providers and lose those all-important customer relationships

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 27

28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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(Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN ltFEFF00410020006b00e9007000650072006e00790151006e0020006d00650067006a0065006c0065006e00ed007400e9007300680065007a002c00200065002d006d00610069006c002000fc007a0065006e006500740065006b00620065006e002000e90073002000200049006e007400650072006e006500740065006e0020006800610073007a006e00e1006c00610074006e0061006b0020006c006500670069006e006b00e1006200620020006d0065006700660065006c0065006c0151002000410064006f00620065002000500044004600200064006f006b0075006d0065006e00740075006d006f006b0061007400200065007a0065006b006b0065006c0020006100200062006500e1006c006c00ed007400e10073006f006b006b0061006c0020006b00e90073007a00ed0074006800650074002e0020002000410020006c00e90074007200650068006f007a006f00740074002000500044004600200064006f006b0075006d0065006e00740075006d006f006b00200061007a0020004100630072006f006200610074002000e9007300200061007a002000410064006f00620065002000520065006100640065007200200036002e0030002c0020007600610067007900200061007a002000610074007400f3006c0020006b00e9007301510062006200690020007600650072007a006900f3006b006b0061006c0020006e00790069007400680061007400f3006b0020006d00650067002egt ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB ltFEFF005500740069006c0069007a006500200065007300730061007300200063006f006e00660069006700750072006100e700f50065007300200064006500200066006f0072006d00610020006100200063007200690061007200200064006f00630075006d0065006e0074006f0073002000410064006f0062006500200050004400460020006d00610069007300200061006400650071007500610064006f00730020007000610072006100200065007800690062006900e700e3006f0020006e0061002000740065006c0061002c0020007000610072006100200065002d006d00610069006c007300200065002000700061007200610020006100200049006e007400650072006e00650074002e0020004f007300200064006f00630075006d0065006e0074006f00730020005000440046002000630072006900610064006f007300200070006f00640065006d0020007300650072002000610062006500720074006f007300200063006f006d0020006f0020004100630072006f006200610074002000650020006f002000410064006f00620065002000520065006100640065007200200036002e0030002000650020007600650072007300f50065007300200070006f00730074006500720069006f007200650073002egt RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed 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28 | KPMGrsquos Global Automotive Executive Survey 2015

KPMG insight

As this yearrsquos survey demonstrates the world inhabited by future auto customers is changing fast It is no surprise then that relationships with brands and mobility providers are up for grabs with emerging consumers more inclined to trust a tech company than an OEM to provide an autonomous vehicle

Given the potential value streams from connectivity and associated services it is easy to see why black swans are flying overhead in the form of new brands and disruptive services and products

But ndash and this is the big ldquobutrdquo ndash will these new offerings come from existing major OEMs or from some other source And will key players from converging industries want to cooperate compete or even position themselves at the top of the new value chain

With these challenges looming OEMs need to ask themselves some searching questions

How do I think about my brands from a consumer rather than an automotive perspective - to attract the new generation of lsquodigital nativesrsquo

How do I learn to be a high value branded services business while

making the most of my strong product and engineering heritage

Should I build buy or partner to achieve this goal

How do I change my vehicle and system architectures to enable me to refresh products in a cycle measured in months rather than years

Who do I work with to develop these technologies and how do I reconfigure my product development capabilities

How do I create the investment capacity to do all of this while continuing to develop and deliver todayrsquos products and maintain returns to shareholders What level of resilience to market event and volatility risk should I maintain during this period

Member firms are seeing our clients across the automotive value chain starting to address these questions and the next few years are going to be fascinating

Roger Bayly PartnerKPMG in the UK

Spotting a black swan in the dark

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 300 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 300 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 BGR 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE ltFEFF005400610074006f0020006e006100730074006100760065006e00ed00200070006f0075017e0069006a007400650020006b0020007600790074007600e101590065006e00ed00200064006f006b0075006d0065006e0074016f002000410064006f006200650020005000440046002c0020006b00740065007200e90020007300650020006e0065006a006c00e90070006500200068006f006400ed002000700072006f0020007a006f006200720061007a006f007600e1006e00ed0020006e00610020006f006200720061007a006f007600630065002c00200070006f007300ed006c00e1006e00ed00200065002d006d00610069006c0065006d00200061002000700072006f00200069006e007400650072006e00650074002e002000200056007900740076006f01590065006e00e900200064006f006b0075006d0065006e007400790020005000440046002000620075006400650020006d006f017e006e00e90020006f007400650076015900ed007400200076002000700072006f006700720061006d0065006300680020004100630072006f00620061007400200061002000410064006f00620065002000520065006100640065007200200036002e0030002000610020006e006f0076011b006a016100ed00630068002egt DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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ltFEFF004b00610073007500740061006700650020006e0065006900640020007300e400740074006500690064002000730065006c006c0069007300740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740069006400650020006c006f006f006d006900730065006b0073002c0020006d0069007300200073006f006200690076006100640020006b00f500690067006500200070006100720065006d0069006e006900200065006b007200610061006e0069006c0020006b007500760061006d006900730065006b0073002c00200065002d0070006f0073007400690067006100200073006100610074006d006900730065006b00730020006a006100200049006e007400650072006e00650074006900730020006100760061006c00640061006d006900730065006b0073002e00200020004c006f006f0064007500640020005000440046002d0064006f006b0075006d0065006e00740065002000730061006100740065002000610076006100640061002000700072006f006700720061006d006d006900640065006700610020004100630072006f0062006100740020006e0069006e0067002000410064006f00620065002000520065006100640065007200200036002e00300020006a00610020007500750065006d006100740065002000760065007200730069006f006f006e00690064006500670061002egt FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

PREPARE FOR THE BLACK SWAN Business model readinessMost important business and investment strategies

Organic growth considered the number one strategy for future success

1 Organic growth

2015

2014

2013 24

67

63

2 Expansion of the value chain and diversifi cation

2015

2014

2013 22

49

54

Cooperation with 2015 49

3 players from converging industries (eg ICT sector)

2014 48

2013 20

4 Corporate partnerships like joint ventures and strategic alliances

2015

2014

2013

38

34

45

Outsourcing of (non) 2015 30

5 core activities to supplierscontract manufacturers

2014 24

2013 18

6 Mergers and acquisitions

2015

2014

2013

23

16

14

Note of respondents rating a business and investment strategy as extremely important Source KPMGrsquos Global Automotive Executive Survey 2015

Survey results

Two-thirds of respondents see organic growth as the most important strategy In second place is expansion of the value chain and diversifi cation as companies move into new markets such as mobility services

Interestingly cooperation with converging industry players is ranked ahead of partnerships with other automakers reflecting the growing importance of technology and the rising influence of new competitors

KPMG viewpoint

Organic growth alone will not meet the needs of tomorrowrsquos mobility culture and OEMs must shorten innovation cycles to bring new products and services to the market In the crucial battle to attain customersrsquo loyalty automakers will have to cooperate with companies offering innovative technologies and services This influx of new players makes it much harder to keep control of the interface with drivers and passengers

Mergers and acquisitions (MampAs) with peers are a lower priority given the associated cost and risks Even if they are inclined traditional automakers may struggle to achieve MampA investments in the connectivity and infotainment sector due to the financial strength of the likes of Apple and Google

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 29

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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FRA 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HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Most significant mobility stakeholders over the next 10 years

Survey results

A vast majority of respondents believe that the established premium and mass market OEMs will continue to dominate the automotive landscape over the next decade

However in an unstable mobility eco-system Tier 1 suppliers are feeling the warm breath of new competitors with brands from the technology and communication industry now considered equally likely to play a role in the mobility space

KPMG viewpoint

As the mobility culture evolves strong brand image and a premium positioning are the best defense against new entrants

If the ICT sector is not yet able to displace traditional automakers then it is certainly intruding into the territory of Tier 1 suppliers as hardware components become evermore commoditized and software and services rapidly gain in importance

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmgcom GAES2015

Traditional automotive players set to prevail ndash but are Tier 1 suppliers most under threat

1 Leading premium market OEM brands (eg Mercedes BMW)

34 48 17

2 Leading mass market OEM brands (eg NissanVW)

32 52 14

3 Pure e-car brands sub-brands (egTesla BMW i)

13 54 29 5

4 Softwareinternet brands (eg Google Apple Intel) 5 17 35 36 8

5 Traditional Tier 1 suppliers (eg Continental Valeo)

3 19 50 27

6 Other technology companies (eg Panasonic IBM)

2 14 30 40 15

2

2

2

Extremely Somewhat Somewhat Not at allNote Percentages may not add up to 100 due to rounding Neutral likely likely unlikely likely Source KPMGrsquos Global Automotive Executive Survey 2015

30 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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ltFEFF04180437043f043e043b043704320430043904420435002004420435043704380020043d0430044104420440043e0439043a0438002c00200437043000200434043000200441044a0437043404300432043004420435002000410064006f00620065002000500044004600200434043e043a0443043c0435043d04420438002c0020043c0430043a04410438043c0430043b043d043e0020043f044004380433043e04340435043d04380020043704300020043f043e043a0430043704320430043d04350020043d043000200435043a04400430043d0430002c00200435043b0435043a04420440043e043d043d04300020043f043e044904300020043800200418043d044204350440043d04350442002e002000200421044a04370434043004340435043d043804420435002000500044004600200434043e043a0443043c0435043d044204380020043c043e0433043004420020043404300020044104350020043e0442043204300440044f0442002004410020004100630072006f00620061007400200438002000410064006f00620065002000520065006100640065007200200036002e00300020043800200441043b0435043404320430044904380020043204350440044104380438002egt CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV ltFEFF005400650020006e006100730074006100760069007400760065002000750070006f0072006100620069007400650020007a00610020007500730074007600610072006a0061006e006a006500200064006f006b0075006d0065006e0074006f0076002000410064006f006200650020005000440046002c0020006b006900200073006f0020006e0061006a007000720069006d00650072006e0065006a016100690020007a00610020007000720069006b0061007a0020006e00610020007a00610073006c006f006e0075002c00200065002d0070006f01610074006f00200069006e00200069006e007400650072006e00650074002e00200020005500730074007600610072006a0065006e006500200064006f006b0075006d0065006e0074006500200050004400460020006a00650020006d006f0067006f010d00650020006f0064007000720065007400690020007a0020004100630072006f00620061007400200069006e002000410064006f00620065002000520065006100640065007200200036002e003000200069006e0020006e006f00760065006a01610069006d002egt SUO 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 SVE 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 TUR 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 UKR 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READINESS FOR AN UNSTABLE MOBILITY ECO-SYSTEM Automotive OEMs that are considered to be best prepared Business model readiness

Global players such as Daimler BMW and GM are considered to be the best prepared

of r

espo

nden

ts c

onsi

derin

g O

EM t

o be

am

ong

the

top

5 pr

oduc

t an

d te

chno

logy

-driv

en O

EMs

70

60

50

40

30

20

10

RENAULT

TATA

TESLA

FORD

HYUNDAIKIA

FIAT CHRYSLER AUTOMOBILES

(FCA)

TOYOTA

VOLKSWAGEN GROUP

DAIMLER

BMW

GENERAL MOTORS

MAZDA

SUZUKI

MITSUBISHI

HONDA

0 10 20 30 40 50 60 70

of respondents considering OEM to be among the top 5 brand-driven OEMs

Survey results

In a fast-changing eco-system Daimler is seen as the number one brand closely followed by GM and BMW These companies have successfully positioned themselves as product- technology- and brand-driven

At the other end of the scale newcomers such as Tesla still face a huge uphill struggle to establish a universally strong brand and technology-oriented image Despite its investment in innovation and its undeniable large achievements regarding e-car technology the gap between established brands and newcomers could still take longer to close

KPMG viewpoint

In an unstable mobility eco-system the relationship between brand products and technology is becoming more complex As products and technologies become more commoditized brand reputation could be the decisive differentiating factor

As mobility players contemplate their brand strategies for this brave new world they could consider taking a look at the direction taken by highly ranked OEMs like BMW and Daimler and their approaches to fi nely balance their activities

Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 31

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 CHS 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 DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 FRA 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GRE 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HEB 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HRV 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 HUN 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ITA 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 JPN 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR ltFEFF004200720075006b00200064006900730073006500200069006e006e007300740069006c006c0069006e00670065006e0065002000740069006c002000e50020006f0070007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e00740065007200200073006f006d00200065007200200062006500730074002000650067006e0065007400200066006f007200200073006b006a00650072006d007600690073006e0069006e0067002c00200065002d0070006f007300740020006f006700200049006e007400650072006e006500740074002e0020005000440046002d0064006f006b0075006d0065006e00740065006e00650020006b0061006e002000e50070006e00650073002000690020004100630072006f00620061007400200065006c006c00650072002000410064006f00620065002000520065006100640065007200200036002e003000200065006c006c00650072002000730065006e006500720065002egt POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

STRATEGIES TO SURVIVE Who remains independent needs to strengthen alliances or has to merge in order to survive

Survey results

As they consider future strategies respondents see the big OEMs primed to go it alone rather than partner with others Even smaller newcomers like Tesla are expected to remain independent despite the high costs of building a global brand and reach

Executives from emerging market OEMs however are more likely to favor stronger alliances to achieve the critical mass necessary to compete effectively This is mainly due to their lack of sophisticated products and solutions making them highly reliant on know-how transfer from established global technology leaders from Western countries through cooperation

The Chinese company considered best equipped to stay independent is Chery which interestingly has a greater global reach than its domestic counterparts making it Chinarsquos largest passenger vehicle exporter

For globally established OEMs remaining independent is the number one survival strategy

1

9

5

13

3

11

7

15

2

10

6

14

4

12

8

16

BMW

Volkswagen Group

Toyota

HyundaiKia

General Motors

Tesla

Renault

Tata (incl JLR)

Nissan

Ford

Honda

Daimler

Chery

FCA

Mitsubishi

Avtovaz

78

76

53

60

47

65

52

56

40

52

59

44

63

51

55

37

12

19

36

24

36

28

28

25

40

30

24

27

29

31

32

49

10

6

12

17

18

8

20

20

21

18

17

30

9

19

14

15

Remain independent Strengthen alliances Merge with other OEMs

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

32 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

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Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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FRA 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HEB 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ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB ltFEFF005500740069006c0069007a006500200065007300730061007300200063006f006e00660069006700750072006100e700f50065007300200064006500200066006f0072006d00610020006100200063007200690061007200200064006f00630075006d0065006e0074006f0073002000410064006f0062006500200050004400460020006d00610069007300200061006400650071007500610064006f00730020007000610072006100200065007800690062006900e700e3006f0020006e0061002000740065006c0061002c0020007000610072006100200065002d006d00610069006c007300200065002000700061007200610020006100200049006e007400650072006e00650074002e0020004f007300200064006f00630075006d0065006e0074006f00730020005000440046002000630072006900610064006f007300200070006f00640065006d0020007300650072002000610062006500720074006f007300200063006f006d0020006f0020004100630072006f006200610074002000650020006f002000410064006f00620065002000520065006100640065007200200036002e0030002000650020007600650072007300f50065007300200070006f00730074006500720069006f007200650073002egt RUM ltFEFF005500740069006c0069007a00610163006900200061006300650073007400650020007300650074010300720069002000700065006e007400720075002000610020006300720065006100200064006f00630075006d0065006e00740065002000410064006f006200650020005000440046002000610064006500630076006100740065002000700065006e0074007200750020006100660069015f006100720065006100200070006500200065006300720061006e002c0020007400720069006d0069007400650072006500610020007000720069006e00200065002d006d00610069006c0020015f0069002000700065006e00740072007500200049006e007400650072006e00650074002e002000200044006f00630075006d0065006e00740065006c00650020005000440046002000630072006500610074006500200070006f00740020006600690020006400650073006300680069007300650020006300750020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200036002e00300020015f00690020007600650072007300690075006e0069006c006500200075006c0074006500720069006f006100720065002egt RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

37 40

Business model readiness

OEMs with limited global reach may have the greatest need for mergers Survey results

17

25

21

29

19

27

23

31

18

26

22

30

20

28

24

32

24Suzuki

34 48 disposed to mergers This is probably due

19 Respondents believe that certain Japanese OEMs ndash notably Mazda Isuzu

19 and Fuji HeavySubaru ndash are more

Mahindra Group 35 47

BAIC

33 39 to a lack of growth potential in their focus 29SAIC

32 46

markets forcing them to look further afield to expand 23BYD

31 34 36Dongfeng KPMG viewpoint

Brilliance-Jinbei 18 Although the stronger established OEMs with global reach are better positioned to

31 52

31 36 34 thrive as independent companies the instability of the future mobility eco-system

PSA

25 51 24 could necessitate a rethink Given the need to bet on a range of

Changan

24 37 40 different technologies and business models alliances could spread the cost and risk

Geely

23 42 36 and bring valuable new intellectual property This may even apply to largely independent

Great Wall Motor

22 36 43 global players for whom cooperation is not an immediate priority

Mazda

20 44 More details on the past yearrsquos results can be found in our

36FAW

20 42 39 interactive online version of the survey on kpmgcomGAES2015

Jianghuai Automotive

18 36 47 Compared to the 2014 survey this yearrsquos results are more optimistic In 2014 only

Isuzu Motors

12 38 51 six companies were thought to have the strength to survive independently a fi gure

Fuji HeavySubaru

Merge with other OEMs that has risen to 12 in 2015 Remain independent Strengthen alliances

Note Percentages may not add up to 100 due to rounding Sorted descending by remain independent Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 33

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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HEB 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HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR ltFEFF0045006b00720061006e002000fc0073007400fc0020006700f6007200fc006e00fc006d00fc002c00200065002d0070006f00730074006100200076006500200069006e007400650072006e006500740020006900e70069006e00200065006e00200075007900670075006e002000410064006f006200650020005000440046002000620065006c00670065006c0065007200690020006f006c0075015f007400750072006d0061006b0020006900e70069006e00200062007500200061007900610072006c0061007201310020006b0075006c006c0061006e0131006e002e00200020004f006c0075015f0074007500720075006c0061006e0020005000440046002000620065006c00670065006c0065007200690020004100630072006f0062006100740020007600650020004100630072006f006200610074002000520065006100640065007200200036002e003000200076006500200073006f006e0072006100730131006e00640061006b00690020007300fc007200fc006d006c00650072006c00650020006100e70131006c006100620069006c00690072002egt UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

rsquo

34 | KPMG s Global Automotive Executive Survey 2015

Prepared to harvest

In the medium term the traditional OEMs are forecast to

maintain their dominance but itrsquos vital they prepare for a more

disruptive future in the long term

Who is best positioned for sustainable growth

As the survey indicates the winners in the new mobility culture will be those companies that achieve the right balance of marketable technologies and apply the appropriate business models to cater to increasingly tech-savvy heterogeneous customer groups

The existing order is not about to be shattered with the top 10 OEMs all forecast to be from mature markets in 2020 and German manufacturers continuing to dominate the premium end The main changes in market position involve Volkswagen potentially stealing the number 1 mass market spot from Toyota as of 2016 and Tata rising

on the back of strategic acquisitions of JLR (Jaguar Land Rover) Hyundairsquos continued rise in market share expected by the majority of respondents on the other hand is predicted to stall somewhat according to recent market forecasts

Nevertheless the traditional OEMs will need to check their blind spots in a proactive way as the tremendous growth in new technologies and customization options is likely to completely change the automotive eco-system as we know it today

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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HEB 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HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB ltFEFF005500740069006c0069007a006500200065007300730061007300200063006f006e00660069006700750072006100e700f50065007300200064006500200066006f0072006d00610020006100200063007200690061007200200064006f00630075006d0065006e0074006f0073002000410064006f0062006500200050004400460020006d00610069007300200061006400650071007500610064006f00730020007000610072006100200065007800690062006900e700e3006f0020006e0061002000740065006c0061002c0020007000610072006100200065002d006d00610069006c007300200065002000700061007200610020006100200049006e007400650072006e00650074002e0020004f007300200064006f00630075006d0065006e0074006f00730020005000440046002000630072006900610064006f007300200070006f00640065006d0020007300650072002000610062006500720074006f007300200063006f006d0020006f0020004100630072006f006200610074002000650020006f002000410064006f00620065002000520065006100640065007200200036002e0030002000650020007600650072007300f50065007300200070006f00730074006500720069006f007200650073002egt RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

Prepared to harvest FIT AND READY TO HARVEST Top 20 OEMs expected to increase their global market share until 2020

Survey results

KPMG viewpoint

Ford

Nissan

Tata (incl JLR)

Chery

Volkswagen Group

Avtovaz

BMW

Renault

General Motors

Mahindra Group

SAIC

Changan

BYD

Brilliance-Jinbei

Tesla

Honda

Daimler

9

HyundaiKia78

75

71

69

69

62

62

58

55

52

52

51

48

46

45

59

58

58

18

18

13

14

22

23

17

16

20

22

20

38

25

32

28

32

30

32

27

23

27

29

9

10 31

16

16

14

5

10

6

8

23

23

18

20

20

17

23

32

Toyota 59

BAIC60

Executives are most optimistic about Hyundairsquos market share increase

1

5

3

7

2

6

4

8

HyundaiKia is expected to gain market share in the next fi ve years according to this yearrsquos respondents

Just behind is Volkswagen with its nearest rivals Toyota and GM in ninth and 14th place respectively

Of the Chinese OEMs Chery is once again the most highly rated while another company from a high growth market Tata performed promisingly ranked in sixth place

13

11

15

10

14

12

16

17

18

19

20

The ranking of who is going to win or lose market share has always been a frequently quoted result in the history of our Global Automotive Executive Survey In order to give the opportunity to compare the survey results with the most recent market forecasts we have included a detailed reality check on the survey fi ndings on the following two pages

To find out more details about the views of our respondents

by stakeholder group or regional cluster please access the interactive online version of this survey on kpmg comGAES2015

Note Percentages may not add up to 100 due to rounding Increase Remain stableDecrease Source KPMGrsquos Global Automotive Executive Survey 2015

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 35

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

kpmgcomsocialmedia

Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY ltFEFF0054006900650074006f0020006e006100730074006100760065006e0069006100200070006f0075017e0069007400650020006e00610020007600790074007600e100720061006e0069006500200064006f006b0075006d0065006e0074006f0076002000410064006f006200650020005000440046002c0020006b0074006f007200e90020007300610020006e0061006a006c0065007001610069006500200068006f0064006900610020006e00610020007a006f006200720061007a006f00760061006e006900650020006e00610020006f006200720061007a006f0076006b0065002c00200070006f007300690065006c0061006e0069006500200065002d006d00610069006c006f006d002000610020006e006100200049006e007400650072006e00650074002e00200056007900740076006f00720065006e00e900200064006f006b0075006d0065006e007400790020005000440046002000620075006400650020006d006f017e006e00e90020006f00740076006f00720069016500200076002000700072006f006700720061006d006f006300680020004100630072006f00620061007400200061002000410064006f00620065002000520065006100640065007200200036002e0030002000610020006e006f0076016100ed00630068002egt SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

KPMG REALITY CHECK ON SURVEY FINDINGS AND OUTLOOK

Leading mass market OEMs ndash Sales ranking 2011-2020 Not a single emerging market OEM is predicted to make the top 10 by the end of this decade in the mass market segment

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1

2

3

4

5

6

7

8

9

10

General Motors Group

Hyundai Group

Volkswagen Group

Toyota Group

Renault-Nissan Group

Volkswagen is predicted to take over Toyotarsquos crown as number one mass market OEM from 2016 onwards

GM has lost its leading position dropping from first place in 2011 to fourth in 2014

Contrary to the executivesrsquo highly optimistic views on Hyundairsquos prospects the Korean automaker is forecast to remain in fi fth place until 2020

Chinese automakers are still unable to make the top 10 despite technology transfer from leading global OEMs like VW Toyota or GM that has benefi ted the likes of First Automobile Works (FAW) Shanghai Automotive Industry Corporation (SAIC) and Beijing Automotive Industry Holding Co (BAIC)

Ford Group

Fiat Chrysler Automobiles

Honda Group

PSA Group

Suzuki Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

36 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

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Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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FRA 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HEB 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ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

Prepared to harvest

Leading premium market OEMs ndash Sales ranking 2011-2020 German automakers are set to continue their domination of the premium segment

1

2

3

4

5

6

7

8

9

10

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

BMW Group

German automakers are forecast to remain dominant in the premium segment up to 2020 and almost certainly way beyond

Volkswagen Group

Daimler Group

Tata Group

Geely Group

Toyota Group

Note OEMs ranked descending by sales volume in respective year Source KPMG Competence Centre Automotive LMC Automotive

Geely and Tata occupy the next two ranks and will outpace Toyota thanks to their premium brand acquisitions (of Volvo and JLR respectively) over the last couple of years

General Motors Group

Renault-Nissan Group

FCA which dipped out of the top 10 in 2013 is predicted to win back its place in the elite by 2017

Honda Group

Fiat Chrysler Automobiles

Ford Group

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 37

KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

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Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN 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 DEU ltFEFF00560065007200770065006e00640065006e0020005300690065002000640069006500730065002000450069006e007300740065006c006c0075006e00670065006e0020007a0075006d002000450072007300740065006c006c0065006e00200076006f006e002000410064006f006200650020005000440046002d0044006f006b0075006d0065006e00740065006e002c00200064006900650020006600fc00720020006400690065002000420069006c006400730063006800690072006d0061006e007a0065006900670065002c00200045002d004d00610069006c0020006f006400650072002000640061007300200049006e007400650072006e00650074002000760065007200770065006e006400650074002000770065007200640065006e00200073006f006c006c0065006e002e002000450072007300740065006c006c007400650020005000440046002d0044006f006b0075006d0065006e007400650020006b00f6006e006e0065006e0020006d006900740020004100630072006f00620061007400200075006e0064002000410064006f00620065002000520065006100640065007200200036002e00300020006f0064006500720020006800f600680065007200200067006500f600660066006e00650074002000770065007200640065006e002egt ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP ltFEFF005500740069006c0069006300650020006500730074006100200063006f006e0066006900670075007200610063006900f3006e0020007000610072006100200063007200650061007200200064006f00630075006d0065006e0074006f00730020005000440046002000640065002000410064006f0062006500200061006400650063007500610064006f007300200070006100720061002000760069007300750061006c0069007a00610063006900f3006e00200065006e002000700061006e00740061006c006c0061002c00200063006f007200720065006f00200065006c006500630074007200f3006e00690063006f0020006500200049006e007400650072006e00650074002e002000530065002000700075006500640065006e00200061006200720069007200200064006f00630075006d0065006e0074006f00730020005000440046002000630072006500610064006f007300200063006f006e0020004100630072006f006200610074002c002000410064006f00620065002000520065006100640065007200200036002e003000200079002000760065007200730069006f006e0065007300200070006f00730074006500720069006f007200650073002egt ETI 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed 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KPMG Global Automotive thought leadership

KPMGrsquos dedicated global Automotive team works with some of the worldrsquos largest and most successful auto companies

Our Automotive network linking more than 4000 professionals within our member fi rms around the world brings together KPMG Audit Tax and Advisory professionals to help us take a comprehensive approach to clientsrsquo activities within the industry

Our services focus on assisting member firmsrsquo clients address major issues and market priorities facing the automotive industry including

bull Converging industry topics (bridging knowledge between industries)

bull Operating business model restructuring (managing the risks of expansion)

bull Market entrysegment entry (understanding cultures and business partners)

bull Consumer trends (creating new business models or managing risk eg from IT)

bull Evolving distribution channels (aligning with customer needs)

bull Reporting regulation and compliance (using new technologies from Big Data initiatives for audit tax deal advice and consulting)

bull Improving operational effi ciencies (generating economies of scale while maintaining quality)

KPMGrsquos Global Automotive teams offer a proactive forward-thinking service to clients helping them take advantage of the sectorrsquos growth potential and overcome the main issues and challenges

38 | KPMGrsquos Global Automotive Executive Survey 2015 copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated

Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

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Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 300 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 300 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 BGR 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 FRA ltFEFF005500740069006c006900730065007a00200063006500730020006f007000740069006f006e00730020006100660069006e00200064006500200063007200e900650072002000640065007300200064006f00630075006d0065006e00740073002000410064006f006200650020005000440046002000640065007300740069006e00e90073002000e000200049006e007400650072006e00650074002c002000e0002000ea007400720065002000610066006600690063006800e90073002000e00020006c002700e9006300720061006e002000650074002000e0002000ea00740072006500200065006e0076006f007900e9007300200070006100720020006d006500730073006100670065007200690065002e0020004c0065007300200064006f00630075006d0065006e00740073002000500044004600200063007200e900e90073002000700065007500760065006e0074002000ea0074007200650020006f007500760065007200740073002000640061006e00730020004100630072006f006200610074002c002000610069006e00730069002000710075002700410064006f00620065002000520065006100640065007200200036002e0030002000650074002000760065007200730069006f006e007300200075006c007400e90072006900650075007200650073002egt GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN ltFEFF753b97624e0a3067306e8868793a3001307e305f306f96fb5b5030e130fc30eb308430a430f330bf30fc30cd30c330c87d4c7531306790014fe13059308b305f3081306e002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b9069305730663044307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200036002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a3067306f30d530a930f330c8306e57cb30818fbc307f3092884c306a308f305a300130d530a130a430eb30b530a430ba306f67005c0f9650306b306a308a307e30593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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SKY 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 SLV 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FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed 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Global Automotive thought leadership

Me My Car My Life (November 2014) In this study KPMG sets out to better understand how the automotive industry will adapt to and shape the converging worlds of personalized mobility and the internet of everything

AutomotiveNow (December 2014) In emerging markets competition is fi erce for Western truck manufacturers This is why more and more of them are choosing to cooperate with local brands and to offer simpler models But is this the right way to go This issue of the AutomotiveNow Magazine gives you a comprehensive insight of challenges for truck manufacturers in emerging markets

Practical Aspects of IFRS a guide for automotive companies (Spring 2015) The Automotive IFRS and Indian GAAP report examines the sector-specifi c IFRS and GAAP issues and is designed to strengthen the clientrsquos technical IFRS GAAP expertise

Global Heavy Truck Brand Value Study (Summer 2015)

KPMGlsquos Global HeavyTruck Brand Value Report will map and analyze all important truck brands from around the globe measure the brand attributes that define the brand value and assess which are most important in defining the individual brand strength

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated KPMGrsquos Global Automotive Executive Survey 2015 | 39

Contact us

Global Americas Asia Pacific EMEA

Additional key contacts Functional leaders

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity Although we endeavor to provide accurate and timely information there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future No one should act on such information without appropriate professional advice after a thorough examination of the particular situation

copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

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Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 300 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 300 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE ltFEFF005400610074006f0020006e006100730074006100760065006e00ed00200070006f0075017e0069006a007400650020006b0020007600790074007600e101590065006e00ed00200064006f006b0075006d0065006e0074016f002000410064006f006200650020005000440046002c0020006b00740065007200e90020007300650020006e0065006a006c00e90070006500200068006f006400ed002000700072006f0020007a006f006200720061007a006f007600e1006e00ed0020006e00610020006f006200720061007a006f007600630065002c00200070006f007300ed006c00e1006e00ed00200065002d006d00610069006c0065006d00200061002000700072006f00200069006e007400650072006e00650074002e002000200056007900740076006f01590065006e00e900200064006f006b0075006d0065006e007400790020005000440046002000620075006400650020006d006f017e006e00e90020006f007400650076015900ed007400200076002000700072006f006700720061006d0065006300680020004100630072006f00620061007400200061002000410064006f00620065002000520065006100640065007200200036002e0030002000610020006e006f0076011b006a016100ed00630068002egt DAN ltFEFF004200720075006700200069006e0064007300740069006c006c0069006e006700650072006e0065002000740069006c0020006100740020006f007000720065007400740065002000410064006f006200650020005000440046002d0064006f006b0075006d0065006e007400650072002c0020006400650072002000620065006400730074002000650067006e006500720020007300690067002000740069006c00200073006b00e60072006d007600690073006e0069006e0067002c00200065002d006d00610069006c0020006f006700200069006e007400650072006e00650074002e0020004400650020006f007000720065007400740065006400650020005000440046002d0064006f006b0075006d0065006e0074006500720020006b0061006e002000e50062006e00650073002000690020004100630072006f00620061007400200065006c006c006500720020004100630072006f006200610074002000520065006100640065007200200036002e00300020006f00670020006e0079006500720065002egt DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN ltFEFF753b97624e0a3067306e8868793a3001307e305f306f96fb5b5030e130fc30eb308430a430f330bf30fc30cd30c330c87d4c7531306790014fe13059308b305f3081306e002000410064006f0062006500200050004400460020658766f8306e4f5c6210306b9069305730663044307e305930023053306e8a2d5b9a30674f5c62103055308c305f0020005000440046002030d530a130a430eb306f3001004100630072006f0062006100740020304a30883073002000410064006f00620065002000520065006100640065007200200036002e003000204ee5964d3067958b304f30533068304c3067304d307e305930023053306e8a2d5b9a3067306f30d530a930f330c8306e57cb30818fbc307f3092884c306a308f305a300130d530a130a430eb30b530a430ba306f67005c0f9650306b306a308a307e30593002gt KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH 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 LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS 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 SKY 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 SLV 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 SUO ltFEFF004b00e40079007400e40020006e00e40069007400e4002000610073006500740075006b007300690061002c0020006b0075006e0020006c0075006f00740020006c00e400680069006e006e00e40020006e00e40079007400f60073007400e40020006c0075006b0065006d0069007300650065006e002c0020007300e40068006b00f60070006f0073007400690069006e0020006a006100200049006e007400650072006e0065007400690069006e0020007400610072006b006f006900740065007400740075006a0061002000410064006f0062006500200050004400460020002d0064006f006b0075006d0065006e007400740065006a0061002e0020004c0075006f0064007500740020005000440046002d0064006f006b0075006d0065006e00740069007400200076006f0069006400610061006e0020006100760061007400610020004100630072006f0062006100740069006c006c00610020006a0061002000410064006f00620065002000520065006100640065007200200036002e0030003a006c006c00610020006a006100200075007500640065006d006d0069006c006c0061002egt SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue 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false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice

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copy 2015 KPMG International Cooperative (ldquoKPMG Internationalrdquo) a Swiss entity Member firms of the KPMG network of independent firms are affiliated with KPMG International KPMG International provides no client services No member firm has any authority to obligate or bind KPMG International or any other member firm vis-agrave-vis third parties nor does KPMG International have any such authority to obligate or bind any member firm All rights reserved The KPMG name logo and ldquocutting through complexityrdquo are registered trademarks or trademarks of KPMG International

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Dieter BeckerGlobal Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Gary SilbergThe Americas Head of AutomotiveKPMG in the USgsilbergkpmgcom

Seung Hoon WiAsia Pacific Head of AutomotiveKPMG in Koreaswikrkpmgcom

Dieter BeckerEMEA and German Head of AutomotiveKPMG in Germanydieterbeckerkpmgcom

Moritz PawelkeGlobal EMEA and German Executive for AutomotiveKPMG in Germanympawelkekpmgcom

Alana MohanGlobal Marketing Manager for AutomotiveKPMG in Canadaaamohankpmgca

Please visit kpmgcomGAES2015 for a full copy of the survey or to use the interactive online tool to filter survey results

Ulrik AndersenKPMG in Russiauandersen1kpmgru

Laurent Des PlacesKPMG in Franceldesplaceskpmgfr

Erguumln KisKPMG in Turkeyergunkiskpmgcom

John D LeechKPMG in the UKjohnleechkpmgcouk

Gavin MaileKPMG in South Africagmailekpmgcom

Fabrizio RicciKPMG in Italyfabrizioriccikpmgit

Francisco Roger RullKPMG in Spainfrogerkpmges

Rajeev SinghKPMG in Indiarpsinghkpmgcom

Megumu KomikadoKPMG in Japanmegumukomikadojpkpmgcom

Danny LeKPMG in Chinadannylekpmgcom

Charles KrieckKPMG in Brazilckrieckkpmgcombr

Roger BaylyGlobal Automotive Advisory LeaderKPMG in the United Kingdomrogerbaylykpmgcouk

Ulrich BergmannGlobal Automotive Financial Services LeaderKPMG in Germanyubergmannkpmgcom

Brigitte RomaniGlobal Automotive Tax LeaderKPMG in Germanybromanikpmgcom

Axel ThuumlmlerGlobal Automotive Audit LeaderKPMG in Germanyathuemlerkpmgcom

Americas country leaders Asia Pacific country leaders EMEA country leaders

Jeff DobbsGlobal Sector Chair Industrial ManufacturingKPMG in the USjdobbskpmgcom

Publication number 132042 Published by Haymarket Network Ltd Publication date January 2015Pre-press by Haymarket Pre-pressPhotography and illustration Vetta View Stock RF Coneyl JayGetty Images 123RF RawpixelFotoliacom Shutterstock

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PreserveOverprintSettings true StartPage 1 SubsetFonts true TransferFunctionInfo Apply UCRandBGInfo Remove UsePrologue false ColorSettingsFile () AlwaysEmbed [ true ] NeverEmbed [ true ] AntiAliasColorImages false CropColorImages false ColorImageMinResolution 100 ColorImageMinResolutionPolicy OK DownsampleColorImages true ColorImageDownsampleType Bicubic ColorImageResolution 100 ColorImageDepth -1 ColorImageMinDownsampleDepth 1 ColorImageDownsampleThreshold 150000 EncodeColorImages true ColorImageFilter DCTEncode AutoFilterColorImages true ColorImageAutoFilterStrategy JPEG ColorACSImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt ColorImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt JPEG2000ColorACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt JPEG2000ColorImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt AntiAliasGrayImages false CropGrayImages false GrayImageMinResolution 150 GrayImageMinResolutionPolicy OK DownsampleGrayImages true GrayImageDownsampleType Bicubic GrayImageResolution 150 GrayImageDepth -1 GrayImageMinDownsampleDepth 2 GrayImageDownsampleThreshold 150000 EncodeGrayImages true GrayImageFilter DCTEncode AutoFilterGrayImages true GrayImageAutoFilterStrategy JPEG GrayACSImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt GrayImageDict ltlt QFactor 130 HSamples [2 1 1 2] VSamples [2 1 1 2] gtgt JPEG2000GrayACSImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt JPEG2000GrayImageDict ltlt TileWidth 256 TileHeight 256 Quality 10 gtgt AntiAliasMonoImages false CropMonoImages false MonoImageMinResolution 300 MonoImageMinResolutionPolicy OK DownsampleMonoImages true MonoImageDownsampleType Bicubic MonoImageResolution 300 MonoImageDepth -1 MonoImageDownsampleThreshold 150000 EncodeMonoImages true MonoImageFilter CCITTFaxEncode MonoImageDict ltlt K -1 gtgt AllowPSXObjects true CheckCompliance [ None ] PDFX1aCheck false PDFX3Check false PDFXCompliantPDFOnly false PDFXNoTrimBoxError true PDFXTrimBoxToMediaBoxOffset [ 000000 000000 000000 000000 ] PDFXSetBleedBoxToMediaBox true PDFXBleedBoxToTrimBoxOffset [ 000000 000000 000000 000000 ] PDFXOutputIntentProfile () PDFXOutputConditionIdentifier () PDFXOutputCondition () PDFXRegistryName () PDFXTrapped False CreateJDFFile false Description ltlt ARA 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 BGR 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 CHS ltFEFF4f7f75288fd94e9b8bbe5b9a521b5efa7684002000410064006f006200650020005000440046002065876863900275284e8e5c4f5e55663e793a3001901a8fc775355b5090ae4ef653d190014ee553ca901a8fc756e072797f5153d15e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c676562535f00521b5efa768400200050004400460020658768633002gt CHT ltFEFF4f7f752890194e9b8a2d7f6e5efa7acb7684002000410064006f006200650020005000440046002065874ef69069752865bc87a25e55986f793a3001901a904e96fb5b5090f54ef650b390014ee553ca57287db2969b7db28def4e0a767c5e03300260a853ef4ee54f7f75280020004100630072006f0062006100740020548c002000410064006f00620065002000520065006100640065007200200036002e003000204ee553ca66f49ad87248672c4f86958b555f5df25efa7acb76840020005000440046002065874ef63002gt CZE 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 DAN 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 DEU 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 ENU (Use these settings to create Adobe PDF documents best suited for on-screen display e-mail and the Internet Created PDF documents can be opened with Acrobat and Adobe Reader 60 and later) ESP 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 ETI 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 FRA 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 GRE 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 HEB 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 HRV 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 HUN 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 ITA 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 JPN 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 KOR ltFEFFc7740020c124c815c7440020c0acc6a9d558c5ec0020d654ba740020d45cc2dc002c0020c804c7900020ba54c77c002c0020c778d130b137c5d00020ac00c7a50020c801d569d55c002000410064006f0062006500200050004400460020bb38c11cb97c0020c791c131d569b2c8b2e4002e0020c774b807ac8c0020c791c131b41c00200050004400460020bb38c11cb2940020004100630072006f0062006100740020bc0f002000410064006f00620065002000520065006100640065007200200036002e00300020c774c0c1c5d0c11c0020c5f40020c2180020c788c2b5b2c8b2e4002egt LTH ltFEFF004e006100750064006f006b0069007400650020016100690075006f007300200070006100720061006d006500740072007500730020006e006f0072011700640061006d00690020006b0075007200740069002000410064006f00620065002000500044004600200064006f006b0075006d0065006e007400750073002c0020006b00750072006900650020006c0061006200690061007500730069006100690020007000720069007400610069006b00790074006900200072006f006400790074006900200065006b00720061006e0065002c00200065006c002e002000700061016100740075006900200061007200200069006e007400650072006e0065007400750069002e0020002000530075006b0075007200740069002000500044004600200064006f006b0075006d0065006e007400610069002000670061006c006900200062016b007400690020006100740069006400610072006f006d00690020004100630072006f006200610074002000690072002000410064006f00620065002000520065006100640065007200200036002e0030002000610072002000760117006c00650073006e0117006d00690073002000760065007200730069006a006f006d00690073002egt LVI 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 NLD (Gebruik deze instellingen om Adobe PDF-documenten te maken die zijn geoptimaliseerd voor weergave op een beeldscherm e-mail en internet De gemaakte PDF-documenten kunnen worden geopend met Acrobat en Adobe Reader 60 en hoger) NOR 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 POL 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 PTB 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 RUM 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 RUS ltFEFF04180441043f043e043b044c04370443043904420435002004340430043d043d044b04350020043d0430044104420440043e0439043a043800200434043b044f00200441043e043704340430043d0438044f00200434043e043a0443043c0435043d0442043e0432002000410064006f006200650020005000440046002c0020043c0430043a04410438043c0430043b044c043d043e0020043f043e04340445043e0434044f04490438044500200434043b044f0020044d043a04400430043d043d043e0433043e0020043f0440043e0441043c043e044204400430002c0020043f0435044004350441044b043b043a04380020043f043e0020044d043b0435043a04420440043e043d043d043e04390020043f043e044704420435002004380020044004300437043c043504490435043d0438044f0020043200200418043d044204350440043d043504420435002e002000200421043e043704340430043d043d044b04350020005000440046002d0434043e043a0443043c0435043d0442044b0020043c043e0436043d043e0020043e0442043a0440044b043204300442044c002004410020043f043e043c043e0449044c044e0020004100630072006f00620061007400200438002000410064006f00620065002000520065006100640065007200200036002e00300020043800200431043e043b043504350020043f043e04370434043d043804450020043204350440044104380439002egt SKY 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 SLV 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 SUO 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 SVE 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 TUR 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 UKR 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 gtgt Namespace [ (Adobe) (Common) (10) ] OtherNamespaces [ ltlt AsReaderSpreads false CropImagesToFrames true ErrorControl WarnAndContinue FlattenerIgnoreSpreadOverrides false IncludeGuidesGrids false IncludeNonPrinting false IncludeSlug false Namespace [ (Adobe) (InDesign) (40) ] OmitPlacedBitmaps false OmitPlacedEPS false OmitPlacedPDF false SimulateOverprint Legacy gtgt ltlt AddBleedMarks false AddColorBars false AddCropMarks false AddPageInfo false AddRegMarks false BleedOffset [ 0 0 0 0 ] ConvertColors ConvertToRGB DestinationProfileName (sRGB IEC61966-21) DestinationProfileSelector UseName Downsample16BitImages true FlattenerPreset ltlt PresetSelector MediumResolution gtgt FormElements false GenerateStructure true IncludeBookmarks false IncludeHyperlinks false IncludeInteractive false IncludeLayers false IncludeProfiles true MarksOffset 6 MarksWeight 0250000 MultimediaHandling UseObjectSettings Namespace [ (Adobe) (CreativeSuite) (20) ] PDFXOutputIntentProfileSelector NA PageMarksFile RomanDefault PreserveEditing false UntaggedCMYKHandling UseDocumentProfile UntaggedRGBHandling UseDocumentProfile UseDocumentBleed false gtgt ltlt AllowImageBreaks true AllowTableBreaks true ExpandPage false HonorBaseURL true HonorRolloverEffect false IgnoreHTMLPageBreaks false IncludeHeaderFooter false MarginOffset [ 0 0 0 0 ] MetadataAuthor () MetadataKeywords () MetadataSubject () MetadataTitle () MetricPageSize [ 0 0 ] MetricUnit inch MobileCompatible 0 Namespace [ (Adobe) (GoLive) (80) ] OpenZoomToHTMLFontSize false PageOrientation Portrait RemoveBackground false ShrinkContent true TreatColorsAs MainMonitorColors UseEmbeddedProfiles false UseHTMLTitleAsMetadata true gtgt ]gtgt setdistillerparamsltlt HWResolution [600 600] PageSize [612000 792000]gtgt setpagedevice