Plug-in hybrids will lead the pack among e-vehicles in the race to produce cleaner, more efficient vehicles, according to KPMG International's 2014 Global Automotive Executive Survey. The rise of alternative powertrain technologies is one of several significant influences shaping the global automotive sector. Automakers are undergoing changes on many other fronts: a shift from partnerships and alliances to organic growth strategies, the continued emphasis of mobility solutions and technology as critical to OEM survival in the automotive value chain, and the increasing power of Brazil, Russia, India and China (BRIC). These issues are explored in-depth in KPMG's 15th annual auto survey, Strategies for a Fast-Evolving Market.

"Continuing consumer concern with fuel efficiency and pollution is urging automakers to focus on plug-in hybrid and fuel cell technologies for the near future," said Mathieu Meyer, Global Head of Automotive and a partner with KPMG in Germany. "Since the development of e-vehicle technology takes time, in parallel, automakers are also maintaining a strong grasp on downsizing the internal combustion engine to meet the needs of the current market place."

Strategy shift

Organic growth has overtaken joint ventures and partnerships as the most favoured business strategy. In 2013, respondents placed joint ventures and alliances as the main approach, while organic growth now tops the list. This view is felt most strongly amongst OEMs from the TRIAD countries (the US, the EU and Japan), with 84 percent listing organic growth as their main business strategy. This significant response may be a result of challenges that are being experienced in current partnerships such as effective integration and finding synergies.