The globalautomotive industry stands at a crossroads. The Intelligence Age is no longer a distant concept; it is reshaping products, valuechains, and competitive advantage in real time. AI, advanced software architectures and next-generation computing paradigms are transforminghow vehicles are conceived, engineered and experienced. Meanwhile, geopolitical uncertainty and supply chain volatility are heightening automotive ecosystem, cutting through speculation to provide anevidence-based view of where the industry truly stands. slow transformation, reflecting challenges seen across the broadertechnology landscape. executives believe they can unlock higher levels of technological andoperational maturity within the next few years, even though fewhave reached that threshold today. Realizing this ambition will requireadaptive strategies, disciplined execution and a commitment todeveloping the workforce alongside technology. five key sub-segments: OEMs, commercial vehicle manufacturers(truck manufacturers), tier-1 suppliers, new technology componentproviders and mobility solution providers. the future of the industry. Building on this foundation, the presentstudy provides a deeper perspective on the “Manage Technology”dimension — exploring how companies are translating strategic intentAs we look ahead, one question frames this report:Can the industrywithstand the disruption ahead and turn it into momentum?Webelieve the answer lies in rejecting hype, grounding decisions in data Global Head of AutomotiveKPMG International and pursuing bold technological ambition with operational realism.We welcome the opportunity to discuss these findings and their engineering and customer lifecycles. However, progress remains uneven. Keyfindings The technological landscape — Understanding today’sindustry realities Part one but continues to struggle with legacy friction, uneven readiness and wideningcapability demands. Leaders see technology as central to competitiveness yetacknowledge the operational barriers that slow execution. +21%63%Truck83%Tier 183%New tech Technological maturity is advancing unevenly across segments, with each cluster scaling the capabilities most aligned with its operational model. Significantacceleration is expected over the next year even though scaling advancedtechnologies remains highly complex. Part two Investment strategies focus on high-value domains such as AI, cybersecurity,modern delivery and digital twins. While organizations consistently realize value 37%43%Truck from technology, frequent trade-offs reveal persistent execution challenges. Keyfindings Building adaptive strategies amid continual disruption control risk, while selective decentralization enables speed and business proximity.Organizations increasingly rely on structured experimentation to manage uncertainty Part three AI adoption is accelerating sharply across all segments, complemented by a 42%54%Truck84%Tier 1 organizations expect significant progress toward scaled AI deployments. Actionableinsights Movefrompilotstoplatform-scaleexecution Buildaworkforcemodelthatscaleswithintelligence,notheadcount Treatgovernanceasaperformanceaccelerator,notaconstraint PrioritizetechnologieswithscalableROI create value from isolated AI and data usecases, but scaling remains constrained by legacyestates, fragmented ownership and inconsistentdata contracts (for example, high “hitting blocks”rates in AI, data and cybersecurity). Leaders muststandardize architectures, enforce “golden paths”and industrialize Machine Learning Operations tier 1s and mobility solution providers capturethe highest returns through standardized digitalcapabilities and data-intensive architectures.At the same time, legacy-heavy players lag. Leadersshould prioritize technologies that enable scalableeconomics — AI, simulation, digital twins andautomation, low-code) is evident across allsegments. Executives must redesign operatingmodels around hybrid digital-human capacity,upskilling teams for AI oversight, orchestration andmodel-driven operations to ensure talent becomesa multiplier, not a bottleneck. technology decisions, but it can become abottleneck and a single point of failure whenbudgets tighten. Executives must rebalancegovernance for both control and speed, enablingdecentralized innovation where safe, while Thetechnologicallandscape—understandingtoday’sindustryrealities unprecedented transformation. Shifting customer expectations,accelerating innovation cycles and intensifying competitivepressures are having a critical impact. Also in play is sweepingtechnological change — from electrified and software-defined Opportunities next 24 months 87%88% signaling a notable shift in sentiment. They express strong optimismabout growth and view technology as a central driver of futurecompetitiveness. Their confidence is reinforced by advancementsin digital capabilities, software-defined architecture and increasinglydata-driven business models