Samjong KPMG "Global Executives Less Confident in Automotive Industry Growth"

The proportion of global executives confident that the automotive industry will grow over the next five years has decreased.

Concerns about the stability of raw materials and parts supply over the next five years [Data provided by Samjong KPMG]

On the 31st, Samjong KPMG announced this in its report titled "24th KPMG Global Automotive Industry Trends." The report includes survey results from 1,041 executives in the automotive and related industries across 30 countries worldwide.

According to Samjong KPMG, the proportion of executives confident that "the automotive industry will grow with high profitability over the next five years" declined from 41% in 2022 to 34% last year.

In the survey regarding raw materials and parts supply, differences were observed between China and other countries. Over 40% of automotive industry executives outside China expressed concerns (very concerned or somewhat concerned) about the supply of raw materials and parts such as fossil fuels, rare earth elements, and semiconductors. In particular, 49% indicated concerns about the supply of lithium, cobalt, nickel, and other battery components.

In contrast, only 28% of Chinese executives expressed concerns about the supply of lithium, cobalt, nickel, and other battery components. This is interpreted as China holding raw materials and supplying them to other countries.

Meanwhile, support among automotive industry executives for electric vehicle purchase subsidy policies has strengthened. The proportion of executives who responded that subsidies should be applied to all electric vehicles, including high-priced models, increased from 21% in 2022 to 30% last year.

Seunghoon Wi, Vice President of Samjong KPMG, stated, "Global automotive industry executives emphasized important future agendas such as customer experience and responding to digital consumers, diversifying supply chain strategies based on various simulations, and discovering talent in artificial intelligence and autonomous driving fields."