36 Pc Automotive Executives Feel Their Company Is Entering Into Deep Transformation: Report

2025-09-24 09:15:29

(MENAFN- IANS) New Delhi, Sep 24 (IANS) 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.”

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