By Amir Orusov
Oct 21 (Reuters) – Software and digital technology are set to overtake traditional vehicle engineering as the key battleground in the automotive industry by 2035, while China is expected to strengthen its position among the world’s largest carmakers, a KPMG survey of industry executives showed on Wednesday.
Among 775 senior executives surveyed, 48% said they expected six of the world’s top 10 automakers to be headquartered in China by 2035, reflecting a shift in industry leadership toward software, AI, batteries and digital innovation.
• 51% of respondents expect software and digital technology to become the industry’s main source of competitive differentiation by 2035
• 92% of companies require at least 12 months to deploy a new AI, software or digital capability across their organization, with more than a third needing over two years
• More than half of respondents said continuous transformation has become the industry’s operating model as companies navigate technological, geopolitical and market disruptions
• Asia-Pacific leads investment in AI and emerging technologies, with 57% of respondents reporting significant spending, compared with 52% in Europe and 48% in the Americas
• Value creation is extending beyond vehicle sales, with companies seeking to leverage sectors such as energy storage, defence and financial services
(Reporting by Amir Orusov in Gdansk, editing by Milla Nissi-Prussak)
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