China will be the king of electrics, and dealers are on the way out, according to a KPMG report

Luc Williams

Changing the car distribution model by 2030

According to representatives' estimates automotive industry by 2030, almost seven in ten new cars will be sold directly through online platforms or by car manufacturers, according to the report “Global Automotive Executive Survey” presented on Thursday by KPMG, which presents the leading trends in the automotive industry worldwide. As reported, the role of dealers in car distribution will decrease in the coming years. This opinion was expressed not only by the surveyed staff representatives, but also by the owners of traditional showrooms, the authors of the study emphasized.

According to the report's results, the position of dealers in Europe will be slightly stronger than in the world. It is expected that in 2030, 35 percent new cars will still be purchased in dealerships. 25 percent will be sold directly by the manufacturers in the model D2C (direct-to-consumer). 20 percent each transactions will be concluded on digital sales platforms and in the agency sales model in digital channels.

Investments in electromobility and the future of electric vehicles

The automotive industry – as indicated – has already invested over $0.5 trillion in transformation towards electromobility. And according to updated forecasts, battery-powered electric vehicles will account for about one third of global car sales. It is expected that the leading position in the global electric vehicle markets will be taken by manufacturers from Chinawith a share of 36 percent

However, sales of electric cars will grow slower than forecasts included in reports published in previous years. This is due to, among other things, the still significantly higher prices of electric vehicles than conventionally powered cars, while subsidy programs for the purchase of “electric cars” are being limited in some countries.

Challenges and factors influencing the development of the electrics market

“Additionally, the forecasted growth dynamics is influenced by the pace of development of charging infrastructure, which is key to allaying customer concerns about the range of electric cars,” he said. Przemysław Szzywacz from KPMG.

Manufacturers' strategies in response to competition on the automotive market

As KPMG informed, increasingly fierce competition and changes in the automotive market will require flexibility and innovation from car manufacturers to achieve profitability. “It will be crucial to invest in cost optimization strategies, such as improving the supply chain, using artificial intelligence in production and reducing battery production costs, to deliver high-quality electric vehicles at an affordable price,” he said. Mirosław Michna from KPMG.

'Global Automotive Executive Survey' research methodology

KPMG International report entitled The “Global Automotive Executive Survey” was based on a survey conducted in October 2023 among over 1,000 representatives of management staff in automotive companies and related industries. (PAP)


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