Car execs expect connectivity to be more profitable than the vehicle itself | Smart Highways Magazine: Industry News

Car execs expect connectivity to be more profitable than the vehicle itself

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A survey of leading car manufacturer executives suggests the vast majority think connectivity will lead to greater revenues than the vehicle they are hosted in.

A survey by KPMG says that car itself will not be the main source of profit in the future, with 85% believing the “digital ecosystem” generate higher revenues than the hardware of the car itself.

They say vehicle independent features will become key purchasing criteria in the future and that vehicles will be the enabler for service- and data-driven business models.

Other views are that the majority of respondents believed half of today’s car owners will not want to own one by 2025, that four out of five think a Silicon Valley company will launch a car within four years.

You can read the summary here.

KPMG’s Global Automotive Executive Survey is an annual assessment of the current state and future prospects of the worldwide automotive industry, and this year researchers surveyed almost a thousand senior executives from the world’s leading automotive companies, including automakers, suppliers, dealers, financial services providers, rental companies, mobility services providers and companies from the information and communication technology sector.

It also spoke to more than 2,400 consumers from around the world to compare their opinion against those of the executives.

 
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