Opportunities in the Automotive Industry from COVID-19

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As a result of the divergence of the global automotive industry market, 83% of global automotive executives agree that regulators and industry policies are driving technological agendas, as subsidy strategies and tax breaks will be even more essential in a post-COVID-19 world. Also, for the first time in the history of the study, the surveyed experts no longer believe that internal combustion engines (ICEs) will have the largest market share in the future.

Due to the crisis generated by the pandemic, vehicles are being japan consumer email list considered a means of protection compared to public transport, which gives manufacturers the opportunity to position themselves and create greater interaction with customers who want to invest in their safety, according to the Global Automotive Executive Survey 2020 , conducted by KPMG International, a global network of professional firms that provide Audit, Tax and Advisory services.

Regarding the results of the study, Oscar Silva, Leading Partner of KPMG's Global Strategy Group in Mexico, mentions: “The COVID-19 crisis is dramatically accelerating trends that already existed and our new survey confirms it: more than 76% of executives believe that by 2030 less than 5% of global production will originate in Europe, which represents a huge opportunity for Mexico . 60% believe that 20% to 30% of physical dealerships will cease to exist and will be replaced by virtual stores. In addition, 80% consider that there will not be a single mobility model and that several models will coexist for some time.”

For his part, Albrecht Ysenburg, Lead Partner for the Automotive Industry at KPMG in Mexico, comments: “COVID-19 may now shift the industry’s focus from technological development to a more operational and survival approach, which in turn presents Mexico as a global production player with threats and opportunities. Furthermore, a global response to all strategic directions does not reflect reality. Companies must develop independent regional strategies for both customers and markets. Mexican companies will need to position themselves to meet the different needs of the market.”

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