Up to 50% of physical dealerships could disappear by 2025, according to KPMG

Posted 08/01/2018 11: 33: 35CET

MADRID, 8 Jan. (EUROPA PRESS) –

Between 30% and 50% of physical dealerships could disappear from the market by 2025, according to KPMG’s ‘Global Automotive Report 2018’, which gathers the opinion of almost 1,000 executives from the automotive and technology sectors and 2,100 consumers.

The responsible partner of Automotive of KPMG in Spain, Francisco Roger, explains that almost 80% of the executives surveyed by the consultant is convinced that the “only alternative” that the dealers have to survive is to become service centers or vehicles secondhand.

On the other hand, the report prepared by KPMG shows that 74% of managers, equivalent to three quarters, foresees that the percentage of cars produced in the western part of the ‘Old Continent’ will fall “significantly” by twelve years, below 5% between now and 2030.

Roger points out that, on the whole, the 50 major automobile manufacturers represent 20% of the market capitalization of the 15 largest technology companies.

According to the responsible partner of Automotive of KPMG in Spain, in 2010 they supposed 40%, what shows “clearly” that the digital companies are playing in a financial league “totally different”, especially, in the case of the generalist brands, “where there is no alternative but collaborations if you do not want to lose the battle for survival against the technological giants.”

“Although premium providers are better positioned, they have also recognized the sign of the times as a result of their collaborations with map services or charging stations for electric vehicles,” he says.

USE OF DATA.

The report of KPMG also shows that more than 80% of managers are confident that the use of data extracted from vehicles and drivers will be the basis of the future business model of the automotive industry, which will involve defining the concept of standard equipment of the cars.

According to 85% of the executives and three of every four clients (2,100 consumers surveyed), cybersecurity and data will be an “indispensable” condition for purchasing a car in the future.

KPMG estimates that, in the future, the production of cars on a global scale will exceed the threshold of 100 million units, although only 2% will correspond to fully electric vehicles.

“Although we do not stop talking about the revolution of electric vehicles, these will not be the only ones that will circulate in the future.In a short / medium term horizon, different models of internal combustion will continue to coexist,” says Roger.