Back in the driver’s seat: KPMG’s 25th Global Automotive Executive Survey reveals how industry leaders are accelerating past disruption

Key Highlights:

• • 36% 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.
  • 86% of OEMs are investing heavily in artificial intelligence (AI), yet only 20% of executives feel prepared to manage the disruption it will bring.
    • 48% of the leading companies say customer satisfaction is critical to their company’s long-term profitability, compared with just 10 percent of the rest of the respondents.
• 94% of companies that are “very prepared” for supply chain disruption report outperforming profit targets, compared to just 45% of those less prepared.

The global automotive industry stands at a pivotal moment. Amid intensifying cost pressures, geopolitical volatility, supply chain fragility, and shifting consumer expectations, many companies are struggling to adapt. KPMG’s 25th Annual Global Automotive Executive Survey (GAES) captures the perspectives of 775 senior executives across OEMs, suppliers, dealerships, mobility and financial services, offering a comprehensive view of how the sector is responding to disruption.

Now in its 25th year, the survey reveals a dramatically altered landscape. A small cohort of high-performing companies—representing the top 15% of respondents—are not only navigating change but leveraging it, outperforming peers in innovation, customer satisfaction, and operational efficiency. Their success is anchored in five strategic imperatives (five Ts of Transformation): Spearhead Transformation, Master Technology, Earn Trust, Navigate Tensions, and Thrive Together. This framework is emerging as a clear differentiator between industry leaders and those at risk of falling behind.

• Transformation: Redefining scale and speed, moving from volume-centric growth to value-driven innovation. As quoted, “Smart scale, not just big scale, is the new competitive differentiator”.
• Technology: AI, digital control towers, and software-defined vehicles are reshaping the industry yet require robust governance to maximize impact. Notably, 86 percent of OEMs are investing heavily in AI.
• Trust: Building hyper-personalized, data-driven customer experiences to strengthen loyalty, as 48 percent of leading companies believe customer satisfaction is critical to profitability.
• Tensions: Strategizing resilient, localized supply chains to counteract geopolitical and regulatory volatility.
• Togetherness: Creating value through partnerships and ecosystems, with 77 percent of leaders identifying such alliances as vital for growth.

Dr. Andreas Ries, Global Head of Automotive, KPMG International said, “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 roadmap for future leadership.”

Jeffry Jacob- Partner and National Sector Leader for Automotive, KPMG in India says, “The five Ts of transformation outlined in the study provide a clear blueprint for success and future winners will be those who are able to 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.”