A recent survey by KPMG reveals that nearly half of global automotive executives predict China will dominate the industry within the next decade. The study, involving 775 senior leaders, found that 48% expect six of the world’s top 10 car manufacturers to be headquartered in China by 2035. This shift shows China’s growing influence in reshaping the competitive market of the automotive sector.
Software and AI: The New Battleground
The survey highlights a growing emphasis on software and digital technology. The survey also found that 51% of those surveyed predict software and digital technology to become their company’s primary source of competitive differentiation by the same year. However, progress is uneven: while 49% report established software-defined products, only 36% have successfully scaled AI and software initiatives beyond pilot stages. This disparity indicates the challenges in fully leveraging these technologies across organizations.
Implementing new enterprise-wide technologies remains a challenge. 92% of executives say it takes at least 12 months to deploy such capabilities. This slow pace shows the complexity of integrating advanced systems into existing operations, highlighting the need for streamlined processes and strategic planning.
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A Decade of Overlapping Disruption
KPMG describes the coming years as a period of overlapping disruption. 52% of respondents view continuous transformation as the industry norm. Factors driving this shift include technology, geopolitics, sustainability, operating pressures, customer expectations, and business-model changes. Andreas Ries, global head of automotive at KPMG International, notes the challenges: “Automotive leaders are managing several moving targets at the same time, from technology and geopolitics to changing customer expectations and business models.” He emphasizes that companies must quickly translate technology into customer value while maintaining flexibility across markets.
China’s Rising Influence and the Path to Success
China’s growing role in the automotive industry is a key takeaway from the survey. Nicolas Nowicki, partner at KPMG France, observes that the industry’s competitive market is being reshaped. “Technology is changing what customers value, how companies differentiate, and where future profit pools may emerge.” While China’s influence is clear, success will depend on more than geographic location or scale.
“It will depend on the ability to deploy technology, build the right ecosystems and adapt as markets diverge,” Nowicki added. Sean, content editor at Fleet News and Automotive Management since 2026, has been reporting on the fleet industry since 2017, providing insights into key issues for decision-makers. His work includes attending events, interviewing industry leaders, and reviewing vehicles, all aimed at enhancing understanding of the industry’s trends.
