Almost 20 per cent of all the executives surveyed, especially those coming from the growth markets of China and India, and ASEAN, opine that by 2025 Original Equipment Manufacturers (OEMs) could simply become contract manufacturers for Information and Communications Technology (ICT) companies.

According to 95 per cent of the respondents from India, the volume segment of the industry is likely to witness a disruption in the years ahead. Rajeev Singh, Partner and Head, Automotive sector, KPMG in India said, "Connectivity and digitisation are likely to impact all automotive companies in India. Volume and mass market manufacturers are also expected to be affected as they are prone to lose customer relationships in the future to new entrants (likely from the ICT sector) in this space.

Emerging trends in the Indian market indicate increasing preference by users to remain connected while using/driving their vehicles. Few applications already aid in establishing connectivity between smartphones and vehicles. Data is going to play a key role in the service and marketing of vehicles to Indian customers."
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