International consultancy KPMG's traditional Global Automotive Executive Survey (GAES), in its 2017 edition published late last month, revealed peculiarities related to the Brazilian market.
Over 1,000 top rank auto executives expressed views about marketing trends and how new technologies might be accepted in several countries.
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A snippet specific to Brazil showed that, although the country is not a great development point from a global standpoint, the local market is technology-driven and professionals interviewed here showed above-average expectations for connectivity progress and autonomous driving.
More than 97% of Brazilian executives partially or totally agreed that, by 2025, integrated products and services will be crucial criteria for consumers buying a motor vehicle.
"This number stands out when comparing it with the global result which was 76%," said Ricardo Bacellar, director for KPMG Brazil's automotive division. Another conclusion: the connected automobile will sustain the industry's business model in the coming years.
Of those interviewed in Brazil, 75% agreed models with such technologies hold potential to generate 10 times more turnover than analogue cars. But, even if automotive sector leaders claim to possess indicators of the industry's new horizon, Bacellar emphasises the road for this evolution is misty. "The executives perceive trends, but they do not know yet how this evolution will be accomplished," he added.
Even without clear routes, the change is likely to be fast, he said. "All disruption has an exponential effect, it surges suddenly." He predicts auto companies will undergo a series of fusions and acquisitions, as has already happened with other sectors.
He is curious why automakers do not talk much about consolidation at a world level. "Among the main leaders, only FCA's CEO Sergio Marchionne is not afraid to talk about it."
He even admits the changing process of business models is challenging but understands this is the sole, possible way for the auto sector.
"To change an industry which has been successful for over 100 years is a hard task, yet the sector cannot remain standing still and replay what has happened in the telecoms segment," he said, pointing to companies that remained inert while WhatsApp and Facebook conquered their customers.
