Automotive industry executives have identified finding alternative fuel sources as the number one trend facing the industry and are focused on producing low cost cars and hybrids to meet consumer dema...
Automotive industry executives have identified finding alternative fuel sources as the number one trend facing the industry and are focused on producing low cost cars and hybrids to meet consumer demand, according to an annual global survey by KPMG LLP, the U. S. audit, tax and advisory firm.
In the KPMG survey, based on interviews with 113 senior executives at vehicle manufacturers and suppliers worldwide, auto execs said quality (86 per cent) and fuel efficiency (84 per cent) are the two key factors for consumers in making a purchase in the next five years.
Other top consumer criteria are safety (70 per cent) and affordability (69 per cent).
The execs also feel that car buyers will want vehicles using alternative fuel sources, which has jumped considerably in importance from KPMG’s survey a year ago (65 per cent versus 53 per cent).
“The industry knows where it is and knows where it needs to be,” said Daron Gifford, national automotive leader for KPMG LLP. “It needs to produce quality vehicles that are fuel efficient, especially in this economic cycle, and it needs to invest heavily in developing alternative sources of power. We found the execs in our survey more optimistic than past years, and that’s largely because the landscape before them is clearer on the direction they need to go.”
To meet demand, auto execs in the KPMG survey said that in the next five years, in terms of global market share and units sold, 81 per cent expect major increases in low cost/introduction cars and an equal percentage expect increases in hybrids.
Categories of vehicles expected to fall are SUVs and large pick-ups, with 47 per cent projecting a decrease in SUVs and 50 per cent projecting a decrease in large pickups.
Asked to rate the importance of automotive product innovations over the next five years, 79 per cent cited hybrid systems and 78 per cent fuel cell technology, with safety innovations trailing at 67 per cent.