auto

Car sales will mostly be online by 2030 in a blow to vehicle dealerships – CityAM


UK companies received a total of £5.1bn from the government in subsidies for buying company cars, new data released today showed.

UK motoring executives think cars will be mostly sold online by 2030, with electric vehicles (EVs) making between 70 and 100 per cent of new vehicle sales in western Europe.

Data from KPMG’s automotive executive survey has revealed that 59 per cent of 1118 executives interviewed believe online sales will become the norm by the end of the decade, with numbers going up to 78 per cent when talking to bosses on a global scale.

The majority of executives is also fairly positive about the industry’s growth, with 53 per cent of them feeling confident.

Even though more the 50 per cent of respondents feel very worried about supply shortages, the survey’s findings have revealed a widespread optimism within the industry.

“It’s encouraging to see such widespread optimism about the growth prospects for the auto industry, but car manufacturers have rarely faced such an array of technological and business-model changes since the dawn of the automotive industry 130 years ago,” said KMPG’s global head of automotive Gary Silberg.

“There are urgent questions executives need to answer right now, including have they learned recent lessons to build more resilient supply chains and address labour shortages.”

Around three-quarter forecast that auto makers will bypass dealers, selling around 40 per cent of new vehicles directly to consumers, while 77 per cent expect EVs to be widespread by 2030 even without government subsidies.

“Whilst supply chain and other cost challenges continue to be a concern, the global automotive industry remains optimistic, in large part due to the innovation being delivered both now and in the coming years,” said KMPG’s head of automotive Richard Peberdy.

“Industry executives are buoyant about EV prospects but are clear that charging infrastructure must keep pace.”



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