MARCH 2019 // motec ventures‘ latest view on the Global Auto Industry

Among the numerous studies published, KPMG's Global Automotive Executive Survey under 981 execs from 41 countries is one of the most comprehensive. At motec ventures, we agree with the majority of the fields analyzed, but have a slightly different perspective on some of them. Our view in a nutshell:

"67% of execs believe that less than 5% of cars will be produced in Western Europe by 2030"

Auto industry is heading into stormy times and Western Europe will be the hardest hit. Besides "Diesel" as continuous troublemaker we are already seeing a number of serious cost-saving measures at leading manufacturers. Models, derivatives and equipment options of the "old world" are radically shortened in order to make room for the immense investment needs around autonomous driving, digital topics and the electrification of entire platforms and model series. This, in combination with the tense economic situation surrounding the trade discussions and Brexit, could lead to severe impacts, especially in connection with the next elections in the US (not until 2020). And in this case, Europe would indeed tend to be hit harder than Japan, for example.

"Almost half of all surveyed executives (48%) are highly confident that the number of physical retail outlets, as we know them today, will be reduced by 30-50%"

The retail of the future will be online. With motec ventures we have recently invested into CarFellows, a seamless end2end online selling platform delivering strong benefits to consumers as well as prospective dealers. We are very confident that the vehicle/service/mobility experience purchase of the future needs to be hassle-free, with only limited nerve-racking administrative issues distracting the consumer from the actual experience buying something nice. CarFellows is just launching its MVP and still open for interested investors

"65% expect ICT companies and automotive manufacturers to cooperate in the future" / "Cooperation with players from converging industries remains number one strategy for success – almost 60% of executives believe this to be extremely important"

With regard to the formation of alliances, we do not only see a stronger will to cooperate with ICT companies, but rather see a massive development in the direction of real strategic partners from the industry, namely among OEMs and suppliers as well as overlapping. BMW and Daimler have recently announced their partnerships around mobility services and autonomous driving technologies. And most OEMs currently do it after them or at least are in the middle of the preparations. Especially those who are now supposed to have to catch up, but also those for whom the massive investment requirements for autonomous driving and electrification are difficult to shoulder, are now in the starting blocks for exciting partnerships. Some will be going through the press shortly, you can be sure of that.


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