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Key Points

A significant number of automotive executives feel their companies are entering a period of deep transformation. While most are investing in AI, very few feel ready for the changes it will bring. The report highlights that companies prepared for supply chain disruptions are far more likely to exceed profit goals. Ultimately, leveraging digital talent and focusing on customer experience are seen as keys to future leadership.

Key Points: 36% of Auto Executives Report Deep Industry Transformation KPMG

  • 86% of OEMs are heavily investing in AI yet only 20% feel prepared for its disruption
  • 94% of supply chain-prepared companies outperform profit targets versus 45%
  • 48% of leading firms see customer satisfaction as critical to long-term profitability
  • AI and software-defined vehicles are reshaping the industry but require strong governance
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36 pc automotive executives feel their company is entering into deep transformation: Report

KPMG report reveals 36% of auto executives see deep transformation ahead, with an AI investment gap and customer focus key to future profitability.

"The automotive industry is no longer merely evolving — it’s being fundamentally redefined. - Andreas Ries, Global Head of Automotive, KPMG International"

New Delhi, Sep 24

As many as 36 per cent of automotive executives say their company is entering a phase of deep transformation — with business models, products, and operations expected to change significantly over the next three years and beyond, a report said on Wednesday.

Meanwhile, 86 per cent of Original Equipment Manufacturers (OEMs) are investing heavily in Artificial Intelligence (AI), yet only 20 per cent of executives feel prepared to manage the disruption it will bring,

At the same time, 48 per cent of the leading companies say customer satisfaction is critical to their company’s long-term profitability, compared with just 10 per cent of the rest of the respondents, KPMG said in its report.

According to the report, 94 per cent of companies that are “very prepared” for supply chain disruption report outperforming profit targets, compared to just 45 per cent of those less prepared.

“The automotive industry is no longer merely evolving — it’s being fundamentally redefined. Emerging technologies, shifting consumer expectations, and geopolitical fragmentation are rewriting the rules of the road. To remain competitive, companies must embrace bold strategic realignment. The five-Ts framework is not just a response to disruption, it’s a road map for future leadership," said Andreas Ries, Global Head of Automotive, KPMG International.

According to the report, AI, digital control towers, and software-defined vehicles are reshaping the industry, yet they require robust governance to maximise impact.

Building hyper-personalised, data-driven customer experiences to strengthen loyalty, as 48 per cent of leading companies believe customer satisfaction is critical to profitability.

Jeffry Jacob, Partner and National Sector Leader for Automotive, KPMG in India, said, “The five Ts of transformation outlined in the study provide a clear blueprint for success, and future winners will be those who can turn disruption to their advantage. For India, this is a once-in-a-generation opportunity to harness our digital talent and manufacturing strengths to achieve global automotive leadership.”

- IANS

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Reader Comments

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Rohit P
Only 20% feel prepared for AI disruption? That's concerning. Indian auto companies need to upskill their workforce quickly. The gap between investment and preparedness could hurt our Make in India initiative.
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Ananya R
Customer satisfaction being critical makes complete sense. With so many options available now, companies that don't focus on customer experience will struggle. Hope Indian manufacturers take this seriously! 👍
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Michael C
The supply chain preparedness numbers are striking - 94% vs 45% profit performance. After the semiconductor shortage issues, Indian companies really need to build resilient supply chains. This is wake-up call material.
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Sarah B
While the transformation is necessary, I hope companies don't forget about affordability. Not everyone can afford high-tech vehicles. There should be options for middle-class families too.
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Vikram M
Software-defined vehicles are the future! Indian IT talent combined with manufacturing could create world-class products. Exciting times for our automotive sector. Jai Hind! 🚗

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