Auto-Sales Landscape Changed Permanently; Hybrid Mantra & Fuel Efficiency: KPMG Survey 

Automotive executives worldwide strongly agree that high oil prices have permanently changed consumers' purchasing habits globally, driving them toward more fuel-efficient vehicles, including hybrids, according to an annual global survey of industry leaders by KPMG.

The KPMG survey, based on interviews with 150 senior executives at vehicle manufacturers and suppliers worldwide, found that:

  • Executives continue to believe that fuel efficiency (89%) and quality (88%) are the primary consumer preferences when purchasing a new car.
  • They believe the most popular vehicles over the next five years will be hybrids (83%) and low-cost cars (64%) 
  • 64% of executives said they expect cars to increase global market share over the next five years, outpacing larger vehicles, such as minivans, which were cited as a growth model by only 33% of executives, while just 28% said SUVs would be gaining share.
  • 55% of executives also expect market share for crossovers to increase. 
  • 42% predicted market share for luxury vehicles will increase.

The survey also found regional variations among the executives: 

  • 95% of North American executives said they were more likely to see a rise in hybrid sales over the next five years, while 67 percent of North American executives predicted crossovers. 
  • 89% of European executives were optimistic on the sale of low-cost vehicles, and 57 percent forecasted luxury vehicles sales will increase. 
  • 37% of Asian executives are more confident about the sales of large pick-up trucks, while 72 percent expected car sales to rise.

This year, 71% of executives believe hybrids will become a U.S. market force, with between 200,000 and 500,000 cars being sold compared with 200,000 sold in 2006. "The hybrid mantra is that the breed cannot fail, given consumer demand and its relatively minuscule production numbers," said Gifford. 

Additional key findings include: 

  • 90% of executives believe consumers will hold on to their new cars for three to seven years. 
  • 94% of executives consider product quality as the most important industry issue in 2006, while 89 percent named cost reduction. 
  • 66% of executives cited innovations in manufacturing as the greatest source of cost savings for vehicle manufacturers, followed by materials innovation and outsourcing to countries like China and Eastern Europe according to 61 percent of executives respectively. 
  • 48% of executives named new models and 43 percent said new technologies are the areas where manufacturers will increase investment.

In the KPMG survey, the executives interviewed represented vehicle manufacturers and suppliers in Canada, United States, England, France, Germany, Sweden, India, China, South Korea, Japan and Australia. KPMG has released an annual survey of automotive executives expressing their views on the state of the industry since 1999.

Previous: « Managers Say the Majority of Information Obtained for Their Work Is Useless: Accenture Survey

Next : » U.S. Firms Planned to Spend Third of Annual Marketing Budgets in Q4 06: Blackfriars Report

  ABOUT    CONTACT Metrics 2.0 RSS Feeds RSS   Metrics 2.0 Widgets for your site or blog WIDGETS   ARCHIVES

Enter Email for Daily Feed Delivery: