KPMG: Global Automakers Put Investment Focus Back on Gas

By Rob Starr, Content Manager, Big4.com

According to the KPMG International 14th Global Automotive Executive Survey, as fuel efficiency remains the top concern among a cost-conscious driving public, global automakers, with still no clear course on electro-mobility, plan to continue to optimize the internal-combustion engine (ICE), but will also put a greater investment in hybrid plug-in fuel systems through 2018.

Consumer interest in fuel efficiency for cost reasons is the primary factor in vehicle purchasing decisions, according to 92 percent of Global Automakers survey respondents. Environmental concerns such as reducing CO2 emissions is still important but slipped from second place in the KPMG 2012 global auto survey to fourth this year.

Twenty-nine percent of OEM and supplier executives say they will invest in downsizing and optimizing ICE technology. Chinese and Brazilian OEMs and suppliers also see a further window of opportunity for optimizing the ICE: 40 percent from China and 37 percent from Brazil are investing in the traditional powertrain technology.

Notable market growth among BRIC countries and other emerging markets is a predominant trend in this Global Automakers year’s survey with nearly 86 percent of respondents.

In fact, an average of nearly 6 out of 10 respondents say they will increase their investments in the BRICs, which are expected to account for nearly 50 percent of all global vehicle sales by 2018. China is the first choice for investment followed by India, Russia and Brazil.