kpmg's global automotive executive survey 2017

KPMG’s Global Automotive Executive Survey 2017

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© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

© 2017 KPMG. KPMG refers JSC “KPMG”, “KPMG Tax and Advisory” LLC, companies incorporated under the Laws of the Russian Federation, and KPMG Limited, a company incorporated under The Companies (Guernsey) Law, as amended in 2008. All rights reserved.


2017 KPMG global automotive executive survey: main trends in Russia and globally

In this publication we present our 2017 automotive executive survey prepared by the global KPMG automotive practice. The opinions were sought of almost 1,000 executives working for vehicle manufacturers, suppliers, dealers, mobility service providers, and ICT-companies. In addition, over 2,400 consumers were surveyed so that their views could be compared with the opinions of the world’s leading auto executives. This year we have also created an interactive online tool where you can dig deeper into the data and filter the results according to your own areas of interest. This year’s survey features quite a large number of Russia-based executives and customers. On many issues there was a convergence of views between respondents in Russia and other countries in the world, but at the same time significant differences of opinion still existed between these two groups on what the future holds for the automotive industry.Electric mobility

The majority of respondents, both globally and in Russia, placed electric mobility first among the key trends in the automotive industry up until 2025. However, globally the preference was for battery electric mobility, whereas in Russia fuel cell electric mobility was preferred. We believe this is due to fuel cell electric cars being better suited to the existing infrastructure (petrol stations in Russia are currently more geared towards fuel cell electric cars than battery cars) and the Russian climate. At the same time, both globally and in Russia the respondents opined that pure battery electric vehicles will not succeed due to the challenges they face vis-à-vis establishing the required infrastructure.While electrical mobility was considered the leading trend in the automotive industry, the contention that diesel has had its day

provoked differing viewpoints in Russia and globally. Globally 53% completely or partially agreed, whereas only 21% of respondents in Russia completely or partially agreed that “diesel is dead”.

Connectivity and digitalisation

While in 2015 this trend occupied only tenth place globally, in 2016 and 2017 it was in first place and second place, correspondingly. Strategic alliances and cooperation with players from related industries will be the fundamental driving forces in the future development of the industry.

Creating value out of big data

It is worth noting that “Creating value out of big data” has last place in Russia among current industry trend. It is evident that the power of analyzing big data has not yet been recognized as a value driver in Russia but it is something that is inevitably coming and Russian market players need to be ready to adapt.

Autonomous and self-driving cars

Which carmaker do you think is seen as leading the way when it comes to autonomous cars? 27% of participants globally and 33% in Russia cited BMW, while Tesla was in second place. Generally, industry representatives globally agree that, with the advent of self-driving cars, the purchase criteria from previous years will become irrelevant. However, in Russia respondents expressed doubts about this; only 47% completely or partially agreed, compared to 68% globally, while 28% of Russian respondents were neutral indicating more uncertainty in the Russian market towards these developments. Customers in turn were far more certain that, with the emergence of driverless cars, past purchasing criteria will be redundant. What matters for them is how they spend their time in the car, and not how the car is driven. This question received 60% positive answers globally, and 55% positive answers in Russia.

Introduction

Ulrik AndersenPartner, Head of AutomotiveKPMG in Russia and the CIS





Interestingly, when respondents were asked which manufacturers of autonomous vehicles they would more likely trust from a safety standpoint, 49% of automotive industry representatives replied premium manufacturers, 37% large-scale manufacturers, and 14% new players from Silicon Valley. In Russia the results were approximately the same, although new players are more trusted by consumers: among the consumers surveyed, the percentage was 25% globally and 27% in Russia. Another interesting finding from our survey is that in the future people may choose to no longer own a car. Globally, 59% of automotive industry representatives believe that by 2025 more than half of all car owners will no longer wish to own a car. In Russia, a different response was elicited: only 28% agreed or partially agreed, whereas 37% were neutral and 35% disagreed. Customers were more conservative when it came to this issue. To the question “By 2025, will more than half of all car owners you currently know no longer want to own a vehicle?” only 35% of respondents globally agreed, while in Russia the majority did not agree (38% totally disagreed and 21% partially disagreed).

Digital ecosystem

Most respondents in Russia believe that by 2025 a digital platform will be mandatory for car purchases. A car owner will log onto the platform using their own identification number, and receive services from the car manufacturer or mobile services provider. At the same time, the digital platform will receive data about the car and the car owner. Generally, the majority of respondents agree that data will be a vital component in the future business models of automotive companies. However, the top managers of automotive companies and customers differ as to their opinions over who should control customer data. 35% of managers believe such data should be controlled by the manufacturer, while most customers believe they should be owned by the car owner. In Russia this percentage is even higher than globally (59%, vs. 48% globally). However, 89%

of customers agree with the statement that if a manufacturer requires such data, the car owner can sell it to them. In Russia and globally, customers would prefer direct money payments in this case.

The vehicles of the future: what will be important for customers?

Brand will continue to be important. The majority of respondents completely or partially agree with this statement (87% globally; 73% in Russia). When respondents were asked to cite a number of important features of the vehicles of the future, the opinions of automotive industry representatives and customers sometimes differed. Russian customers put in first place driving pleasure and speed (54%), then transparency over the total cost of ownership /usage (51%), and third data privacy and security (48%). Globally, the first three places are the same but are in a different order: first, data privacy and security (48%); second, transparency over the total cost of ownership /usage (45%); and only in third place came driving pleasure and speed (42%). The automotive industry representatives cited data privacy and security as being the most important feature.

We want to thank all the participants for their contributions to the 2017 survey and invite to participate in the next year survey.

Ulrik Andersen

Partner, Head of AutomotiveKPMG in Russia and the CIS

Introduction



2015

What are the key trends in the automotive industry until 2025?Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue SegmentationAll All All All

50%

49%

47%

44%

43%

40%

39%

39%

37%

31%

31%

2016 2017

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

#11

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

#11

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

#11

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

#11

Battery electric mobility

Connectivity & digitalization

Fuel cell electric mobility

Hybrid electric vehicle

Market growth in emerging markets

Increasing use of platform strategies and standardization of modules

Creating value out of big data (e.g. vehicl user data)

Mobility-as-a-service / Car sharing

Autonomous & self-driving cars

Downsizing of internal combustion engine (ICE)

Rationalization of production in Western Europe

2015 2016 2017

40%

23%

21%

19%

19%

16%

16%

14%

14%

14%

9%

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

#11

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

#11

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

#11

#1

#2

#3

#4

#5

#6

#7

#8

#9

#10

#11

Fuel cell electric mobility

Mobility-as-a-service / Car sharing

Battery electric mobility

Connectivity & digitalization

Hybrid electric vehicle

Market growth in emerging markets

Rationalization of production in Western Europe

Autonomous & self-driving cars

Downsizing of internal combustion engine (ICE)

Increasing use of platform strategies and standardization of modules

Creating value out of big data (e.g. vehicle & user data)

RUSSIAGLOBAL

n = 953 n = 43



Internal combustion engines (ICE) will still be more important than electric drivetrains for a very long time

Taking the temperature on fossil drivetrain technologiesJob Title Revenue Segmentation Stakeholder SegmentationAll All All

Absolutely agree Partly agree Neutral Partly disagree Absolutely disagree

GLOBAL RUSSIA

28%

48%

12%

10%

2%

12%

51%

26%

7%

5%

n = 953 n = 43



Taking the temperature on fossil drivetrain technologies

Diesel is dead

Job Title Revenue Segmentation Stakeholder SegmentationAll All All

GLOBAL RUSSIA

19%

34%

23%

18%

7%

19%

28%

42%

2%

9%


n = 953 n = 43



Taking the temperature on e-technologies

Fuel cell electric vehicles (FCEVs) will be the real break-through for electric mobility


GLOBAL RUSSIA


n = 953 n = 43

33%

45%

16%

5%

1%

14%

60%

19%

7%

0%



Taking the temperature on e-technologies

Pure battery electric vehicles (BEVs) will fail due to the challenges related to setting up the required infrastructure


GLOBAL RUSSIA


n = 953 n = 43

22%

40%

20%

12%

6%

40%

37%

7%

7%

9%



What powertrain technology to invest in and when to make the shift?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

2017

Powertrain technologies forplug-in hybrid electric vehicles (PHEV)

Powertrain technologies for full hybrid electric vehicles (FHEV)

Downsizing of internal combustion engines (ICE)

Powertrain technologies for fuel cell electric vehicles

Powertrain technologies forbattery electric vehicles with range extender (EREV)

Powertrain technologies forpure battery electric vehicles (BEV)

2017







53%

52%

52%

49%

49%

48%

40%

28%

28%

30%

19%

26%

n = 953 n = 43



2017







2017







What powertrain technology to invest in and when to make the shift?Year Age Living Circumstances Income Level Car Ownership2017 All All All All

GLOBAL RUSSIA

15%

36%

21%

12%

8%

8%

12%

47%

18%

7%

9%

7%

n = 2.418 n = 121



Who is seen as leading in autonomous driving?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

2017

#1 BMW Group

#2 Tesla Motors

#3 Honda Group

#4 Toyota Group

#5 Daimler / Mercedes-Benz

#6 Ford Group

#7 Hyundai Group

#8 General Motors Group

#9 Volkswagen Group

#10 FAW Group

2017

#1 BMW Group

#2 Tesla Motors


#4 Honda Group

#5 Hyundai Group

#6 Toyota Group

#7 Mitsubishi Motors

#8 FAW Group

#9 Fiat Chrysler Automobiles

#10 Ford Group

27%

9%

8%

7%

6%

6%

5%

5%

3%

4%

33%

12%

9%

7%

7%

7%

5%

2%

2%

2%

n = 953 n = 43



Who is seen as leading in electric mobility?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

2017

#1 BMW Group

#2 Tesla Motors

#3 Honda Group

#4 Toyota Group

#5 Hyundai Group


#7 Ford Group


#9 Volkswagen Group

#10 BYD Auto

2017

#1 Tesla Motors


#3 Honda Group

#4 Toyota Group

#5 BMW Group

#6 FAW Group

#7 Volkswagen Group

#8 Changan Automobile Group

#9 Ford Group

#10 Fuji Heavy Industries (incl. Subaru)

16%

14%

10%

7%

6%

6%

6%

4%

3%

3%

30%

12%

9%

9%

7%

5%

5%

2%

2%

2%

n = 953 n = 43



Taking the temperature on autonomous driving

With the emergence of self-driving cars the purchasing criteria of the past will become irrelevant


GLOBAL


n = 953 n = 43

RUSSIA

25%

43%

17%

11%

3%

14%

33%

28%

23%

2%



Taking the temperature on autonomous drivingAge Living Circumstances Income Level Car OwnershipAll All All All

With the emergence of self-driving cars the purchasing criteria of the past will become irrelevant for me. All that counts is what I can do with my time in the car and not how the car drives

GLOBAL RUSSIA


n = 2.418 n = 121

18%

42%

18%

15%

7%

12%

43%

16%

16%

13%



Taking the temperature on vehicle-independent purchasing criteria

In the future, customers will decide to buy a vehicle / use a mobility service also based on the vehicle independent products and services offered by the mobility service provider (e.g. benefits / rewards, usability of the app)


GLOBAL RUSSIA


n = 953 n = 43

43%

46%

8%

2%

1%

30%

49%

16%

5%

0%



Taking the temperature on vehicle-independent purchasing criteriaAge Living Circumstances Income Level Car OwnershipAll All All All

In the future I will decide to buy a vehicle / use a mobility service also based on the vehicle independent products and services offered by the mobility service provider

GLOBAL RUSSIA


n = 2.418 n = 121

32%

41%

20%

4%

2%

38%

52%

5%

5%

0%



Taking the temperature on the digital ecosystem

In the future, the digital ecosystem will generate higher revenues in the automotive value chain than the hardware of the car itself


GLOBAL RUSSIA


n = 953 n = 43

36%

49%

11%

3%

1%

21%

56%

12%

12%

0%



Taking the temperature on measuring success

In the future, 5,000 connected vehicles will generate higher revenue streams based on endless upselling potentials than 5,000 vehicles which are not connected


GLOBAL RUSSIA


n = 953 n = 43

33%

43%

18%

5%

1%

21%

47%

23%

9%

0%



Taking the temperature on measuring success

In a digital eco system measuring market shares simply based on unit sales is outdated


GLOBAL RUSSIA


n = 953 n = 43

28%

43%

21%

7%

1%

40%

35%

9%

9%

7%



How likely do you consider a major business model disruption?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

Extremely likely Somewhat likely Neutral / Don't know Somewhat unlikely Not at all likely

2015 2016 2017

n = 200 800 953

2015 2016 2017

n = 15 55 43

2017

13%

1%

3%

2017

52%

31%

40%

9%

26%

47%

7%

16%

5%



Taking the temperature on car ownership

Until 2025 more than half of all car owners today will not want to own a car anymore


GLOBAL RUSSIA


n = 953 n = 43

25%

34%

20%

14%

8%

12%

16%

37%

21%

14%



Taking the temperature on car ownership

By 2025, more than half of all car owners I personally know today will not want to own a vehicle anymore

GLOBAL RUSSIA


n = 2.418 n = 121

10%

25%

28%

21%

16%

11%

24%

21%

38%

6%

Age Living Circumstances Income Level Car OwnershipAll All All All



Who will take over the direct customer relationship?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

2017 2017

OEM

System Suppliers

Retailer

Mobility solutions provider

ICT company

41%

22%

11%

16%

9%

ICT company16%

OEM

System Suppliers

Retailer


44%

12%

12%

16%

2015 2016 2017

n = 200 800 953

2015 2016 2017

n = 15 55 43



Who will take over the direct customer relationship?Year Age Living Circumstances Income Level Car Ownership2017 All All All All

GLOBAL RUSSIA

2017 2017

OEM

System Suppliers

Retailer


ICT company ICT company

OEM

System Suppliers

Retailer


26%

14%

28%

13%

19% 19%

2%

39%

11%

30%

n = 2.418 n = 121



Taking the temperature on new market entrants

Silicon Valley companies (e.g. Google) will launch a car to the market by 2020


GLOBAL RUSSIA


n = 953 n = 43

37%

45%

12%

5%

1%

21%

44%

26%

7%

2%



What are future strategies for success?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

2017

Cooperation with players from converging industries

Corporate partnerships like joint ventures and strategic alliances

Organic growth

Mergers & acquisitions (cross-sector)

Mergers & acquisitions(inner-sector)

Outsourcing of (non-)core activities to suppliers / contract manufacturers

2017

Cooperation with players from converging industries

Corporate partnerships like joint ventures and strategic alliances

Organic growth

Mergers & acquisitions (cross-sector)

Mergers & acquisitions (inner-sector)

Outsourcing of (non-)core activities to suppliers / contract manufacturers

49%

46%

40%

34%

32%

32%

30%

21%

19%

12%

12%

19 %

n = 953 n = 43



What are future strategies for success?Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue SegmentationAll All All All

GLOBAL RUSSIA

2017 2017

n = 953 n = 43

Compete Cooperate

55%

45%

53%

47%



Whom would you most likely trust when sitting in an autonomous vehicle?Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue SegmentationAll All All All

GLOBAL RUSSIA

2017 2017

n = 953 n = 43

The premium manufacturers (e.g. BMW, Mercedes-Benz) The volume manufacturers (e.g. VW, Toyota, Nissan) The newcomers from Silicon Valley (e.g. Google, Apple, Te..

49%

37%

14%

44%

42%

14%



Whom would you most likely trust when sitting in an autonomous vehicle?Age Living Circumstances Income Level Car OwnershipAll All All All

GLOBAL RUSSIA

2017 2017

n = 2.418 n = 121

The premium manufacturers (e.g. BMW, Mercedes-Benz) The newcomers from Silicon Valley (e.g. Google, Apple, Te..

38%

37%

25%

34%

39%

27%

The volume manufacturers (e.g. VW, Toyota, Nissan)



Taking the temperature on the distribution of roles

A car being marketed by one of the Silicon Valley players (such as Google or Apple) will be assembled by one of the traditional OEMs


GLOBAL RUSSIA


n = 953 n = 43

33%

45%

15%

5%

1%

12%

58%

21%

7%

2%



What will the business model of an OEM look like in 2025?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

2017 2017

2016 2017

n = 800 953

2016 2017

n = 55 43

Grid Master

Production and sale of an automobile PLUS offering vehicle depend..

Production and sale of an automobile and traditional leasing / financi..

Metalsmith

35%

32%

18%

15%

42%

33%

19%

7%



Taking the temperature on data

Data is the fuel for the future business model of automotive companies


GLOBAL RUSSIA


n = 953 n = 43

36%

48%

12%

3%

1%

16%

47%

37%

0%

0%



Taking the temperature on the data literacy of auto companies

By 2025, Original Equipment Manufacturers (OEMs) will manage to generate revenues based on the business models that monetize upstream and downstream data collected by sensors in their car fleets

(Definition: upstream data = vehicle data; downstream data = customer data)


GLOBAL RUSSIA


n = 953 n = 43

38%

45%

14%

3%

1%

23%

33%

40%

5%

0%



Taking the temperature on the data literacy of auto companies

A car needs its very own operating system (OS)


GLOBAL RUSSIA


n = 953 n = 43

44%

38%

12%

6%

1%

19%

53%

19%

9%

0%



Taking the temperature on “digitail” platformizationJob Title Revenue Segmentation Stakeholder SegmentationAll All All

GLOBAL RUSSIA


n = 953 n = 43

By 2025 a single sign-on / log-in on a digital platform of a car manufacturer / mobility service provider comprising the full spectrum of information and services with a personal ID will be an absolute purchasing criteria for mobility

customers

31%

51%

13%

5%

1%

53%

28%

14%

5%

0%



Taking the temperature on “digitail” platformizationAge Living Circumstances Income Level Car OwnershipAll All All All

GLOBAL RUSSIA

n = 2.418 n = 121


By 2025, a single sign-on / log-in on a digital platform of my car manufacturer / mobility service provider comprising the full spectrum of information and services with a personal ID will be an absolute purchasing criteria for me

17%

41%

29%

9%

5%

24%

34%

23%

15%

4%



Who do you think should be the owner of the consumer data?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

2016 2017

n = 800 953

2016 2017

n = 55 43

2017

Government

ICT company


OEM / vehicle manufacturer

Owner / driver of the car

Retailer

Supplier

2017

Government

ICT company




Retailer

Supplier

18%

31%

27%

7%

6%

9%

2%

14%

35%

14%

9%

12%

9%

7%



Who do you think should be the owner of the consumer data?Year Age Living Circumstances Income Level Car Ownership2017 All All All All

GLOBAL RUSSIA

2016 2017

n = 2.123 2.418

2016 2017

n = 140 121

2017

Government

ICT company




Retailer

Supplier

2017

Government

ICT company




Retailer

Supplier

14%

14%

48%

6%

6%

6%

7%

16%

10%

59%

4%

7%

2%

2%



Who do you think should be the owner of the vehicle data?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

2016 2017

n = 800 953

2016 2017

n = 55 43

2017

Government

ICT company




Retailer

Supplier

2017

Government

ICT company




Retailer

Supplier

15%

33%

29%

6%

5%

10%

2%

9%

33%

14%

5%

12%

7%

9%

26%



Who do you think should be the owner of the vehicle data?Year Age Living Circumstances Income Level Car Ownership2017 All All All All

GLOBAL RUSSIA

2016 2017

n = 2.123 2.418

2016 2017

n = 140 121

2017

Government

ICT company




Retailer

Supplier

2017

Government

ICT company




Retailer

Supplier

14%

19%

41%

5%

7%

8%

5%

15%

17%

50%

7%

3%

5%

2%



How likely do you think consumers will be willing to share their data?Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue SegmentationAll All All All

GLOBAL RUSSIA

n = 953

Sub-Question 2017

Geospatial data

Sensor data

Visual data

Consumption behavior data

Health data

None of the above

Sub-Question 2017

Geospatial data

Sensor data

Visual data


Health data

None of the above

87%

82%

79%

83%

35%

88%

74%

49%

63%

72%

30%

84%

n = 43



How likely do you think consumers will be willing to share their data?Age Living Circumstances Income Level Car OwnershipAll All All All

GLOBAL RUSSIA

n = 2.418 n = 121

2017

Geospatial data

Sensor data

Visual data


Health data

2017

Geospatial data

Sensor data

Visual data


Health data

80%

65%

66%

68%

75%

79%

39%

55%

53%

59%



What do customers want in return for their data?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

Sub-Question 2017

Direct monetary benefits

Consumer incentive schemes

Individualized service & customer experience over the whole customer lifecycle

No benefits offered

Sub-Question 2017




No benefits offered

90%

44%

90%

88%

72%

23%

74%

86%

n = 953 n = 43



What do customers want in return for their data?Age Living Circumstances Income Level Car OwnershipAll All All All

GLOBAL RUSSIA

Sub-Question 2017




No benefits offered

Interest in benefits in exchange for car data - Other

Sub-Question 2017




No benefits offered

Interest in benefits in exchange for car data - Other

75%

30%

71%

82%

45%

64%

24%

72%

89%

36%

n = 2.418 n = 121



Whom do you think a consumer would trust most with their data?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

2016 2017

n = 800 953

2016 2017

n = 55 43

2017 2017

16%

19%

7%

3%

34%

8%

14%

14%

19%

12%

5%

40%

5%

7%



How important will an auto company's brand be in the future?Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue SegmentationAll All All All

GLOBAL RUSSIA

Extremely important Somewhat important Neutral / Don't know Somewhat unimportant Not at all important

n = 953 n = 43

2017 2017

46%

41%

1%

9%

2%

26%

47%

5%

2%

21%



Whom do you think a consumer would trust most with their data?Year Age Living Circumstances Income Level Car Ownership2017 All All All All

GLOBAL RUSSIA

2016 2017

n = 2.123 2.418

2016 2017

n = 140 121

Government

ICT company


No one except of myself


Retailer

Supplier

2017 2017

14%

49%

4%

4%

18%

5%

6%

17%

66%

3%

5%

9%

2%

1%



How important do you think the following features will be?Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue SegmentationAll All All All

GLOBAL RUSSIA

n = 953 n = 43

Sub-Question 2017

Data privacy & security

Self-driving cars / active driver assistance systems

Zero emission / electric mobility

Vehicle dependent connectivity features

Driving pleasure & speed

Brand & image

Transparency over total cost of ownership / usage

Vehicle independent connectivity features

Sub-Question 2017






Brand & image



52%

45%

44%

44%

43%

42%

42%

39%

40%

28%

19%

21%

37%

16%

28%

9%



How important do you think the following features will be?Age Living Circumstances Income Level Car OwnershipAll All All All

GLOBAL RUSSIA

n = 2.418 n = 121

Sub-Question 2017






Brand & image



Sub-Question 2017






Brand & image



48%

25%

30%

36%

42%

27%

45%

22%

48%

11%

22%

28%

54%

10%

51%

7%



Which macroeconomic changes in1luence your company the most?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

2016 2017

n = 800 953

2016 2017

n = 55 43

Financial / economic crisis

Oil price volatility

Raw material costs

Wars and terrorism

Political changes

Natural disasters

Sub-Question 2017



Raw material costs

Wars and terrorism

Political changes

Natural disasters

Demographical developments

Sub-Question 2017



Raw material costs

Wars and terrorism

Political changes

Natural disasters



56%

50%

48%

39%

49%

35%

35%

51%

35%

35%

23%

26%

9%

5%



Taking the temperature on political disruption

The year 2017 will be the “political year of hell” and will lead to massive economic disruption


GLOBAL RUSSIA


n = 953 n = 43

26%

33%

22%

11%

7%

47%

37%

12%

2%

2%



Taking the temperature on political disruptionAge Living Circumstances Income Level Car OwnershipAll All All All

GLOBAL RUSSIA

n = 2.418 n = 121


The year 2017 will be the “political year of hell” and will lead to massive economic disruption

12%

32%

31%

16%

10%

32%

22%

25%

12%

9%



Taking the temperature on European developments

By 2025, the EU will have fallen apart completely


GLOBAL RUSSIA


n = 953 n = 43

21%

39%

19%

13%

8%

42%

33%

16%

9%

0%



Taking the temperature on European developmentsAge Living Circumstances Income Level Car OwnershipAll All All All

GLOBAL RUSSIA

n = 2.418 n = 121


By 2025, the EU will have fallen apart completely

11%

28%

32%

16%

14%

12%

44%

21%

12%

12%



Taking the temperature on production in Western Europe

By 2030, less than 5% of the global car production will originate from Western Europe (2016: ~16%)


GLOBAL RUSSIA


n = 953 n = 43

23%

42%

22%

10%

2%

14%

35%

35%

12%

5%



What is China’s role by 2025?Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue SegmentationAll All All All

GLOBAL RUSSIA

n = 953 n = 43

Sub-Question 2017

High growth market for traditional mass & volume manufacturers

High growth market for traditional premium manufacturers

Frontrunner for electric mobility

Frontrunner for innovative data-driven business models

None of the above

Sub-Question 2017

High growth market for traditional mass & volume manufacturers

High growth market for traditional premium manufacturers

Frontrunner for electric mobility

Frontrunner for innovative data-driven business models

None of the above

56%

44%

36%

22%

2%

51%

47%

37%

12%

2%



Where to pilot a launch of an innovation?Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue SegmentationAll All All All

GLOBAL RUSSIA

2017

A completely new data-driven business model

#1 USA

#2 Germany

#3 China

A mobility service innovation

#1 China

#2 USA

#3 Germany

A new product / car

#1 China

#2 Germany

#3 USA

2017

A completely new data-driven business model

#1 Russia

#2 USA

#3 Denmark

A mobility service innovation

#1 Russia

#2 Germany

#3 USA

A new product / car

#1 Germany

#2 Russia

#3 Belarus

14%

14%

13%

15%

13%

12%

16%

14%

10%

19%

12%

9%

21%

14%

12%

26%

19%

12%

n = 953 n = 43



Taking the temperature on the future of China and IndiaJob Title Revenue Segmentation Stakeholder SegmentationAll All All

GLOBAL RUSSIA

By 2030, the global share of vehicles sold in China will be above 40% (2016: ~29%)


n = 953 n = 43

29%

47%

16%

6%

1%

49%

19%

12%

21%

0%



Taking the temperature on the future of China and IndiaJob Title Revenue Segmentation Stakeholder SegmentationAll All All

GLOBAL RUSSIA


n = 953 n = 43

India will get anywhere close to China in terms of vehicles sold by 2030

10%

21%

41%

25%

2%

14%

35%

42%

0%

9%



Who has the best prospects over the next 5 years?Year Job Title Down- vs. Upstream Players Stakeholder Segmentation Revenue Segmentation2017 All All All All

GLOBAL RUSSIA

Increase Remain stable Decrease

#1 BMW Group

#2 Toyota Group


#4 Honda Group

#5 Hyundai Group

#6 Volkswagen Group

#7 Ford Group

#8 Tesla Motors



37%58% 5%

39%55% 6%

41%52% 7%

40%51% 9%

10%40%50%

13%39%49%

12%41%47%

10%46%44%

13%45%42%

14%45%42%

#1 BMW Group


#3 Toyota Group

#4 Hyundai Group

#5 Volkswagen Group

#6 Geely Group (incl. Volvo)



#9 Renault-Nissan Group

#10 Ford Group

40%53% 7%

12%37%51%

47%49% 5%

16%40%44%

51%40% 9%

53%37% 9%

16%49%35%

28%42%30%

16%53%30%

21%51%28%

n = 953 n = 43

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