Technological pressure stalks the automotive industryAutomotive News
Investment in technology is a priority, the sector believes
The companies are optimistic about the closing of 2017
Technological breakthroughs and how they are going to affect your traditional business are a “growing” concern among the industry’s engine managers in Spain. A KPMG report highlights that “the automotive sector is well aware of the need to adapt to the new digital ecosystem and therefore 64% of executives plan to invest in technology tools this year.”
According to the Perspectivas España 2017 report, developed by the consultancy KPMG with the collaboration of the Spanish Confederation of Business Organizations (CEOE), the strategic priorities of the sector are directed towards the improvement of processes, the development of new products and the digital transformation, according to 53%, 47% and 45% of the executives interviewed, respectively.
At this point in the digital transformation, 78% of managers believe that by 2025, equipment manufacturers “will generate more revenue through business models that are able to monetize the data collected by the sensors of their vehicle fleets “Says the report. “The automotive sector faces a profound change that will lead to more revenue from the digital ecosystem generated by the vehicles than from the sale of the car itself,” said Francisco Roger, responsible partner of Automotive at KPMG in Spain. “This new environment opens a very hopeful period for the businessmen and managers of the sector who expect to increase their staffing and billing to serve a new niche market: the digitized and connected vehicle,” explains Roger.
“There are new competitors that introduce a lot of pressure, because they are advancing faster in technology,” says Roger. “The industry is” worried “because it is adapting itself” to the trailer of technological advances.
In addition, “the industrial sectors, not only the engine but all at the global level, are detecting a lack of what technologies can do or have potential to achieve and what manufacturers can master. There is a lack of training in these areas so that progress can be made as much as possible, “he says.
Optimism this year
In the short term, however, the executives of the automotive sector in Spain look optimistically at the 2017 financial year in terms of forecasts of growth in turnover and contracting levels.
Eighty-two percent of respondents expect to increase their incomes this year compared to 10% expected to decline, and 68% of these executives plan to increase their workforce. At the sectoral level, “this positive perception of the economic expectations” of the entrepreneurs and executives of Automotive companies is consolidated. According to the report, “are the second most optimistic of Spain, only surpassed by those of the Tourism and Leisure sector.” Thus, 76% qualify the current situation of “good” or “excellent” and at 12 months seen four out of 10 expected to improve, explain from KPMG.
“The automotive sector has an interest in investing in Spain. There are consultations by groups from Japan, China, India or even some Latin American companies that do not have a presence in Europe or that want to reinforce it and are looking in detail at the possibilities of the country, “says Roger.
However, the manager warns that “Spain is not in the pools of companies that want to divest in the UK after the brexit and we have to work, playing our cards to the maximum, to be better positioned,” he says. Economic uncertainties are the main obstacles to this positioning.
Noemi Navas – CINCO DIAS – Madrid MAY 8, 2017