Auto, manufacturing CEOs remain upbeat on growth; bet big on AI: KPMG

Supply chain resilience remains the top operational priority, cited by 47 per cent of automotive CEOs and 63 per cent of industrial manufacturing CEOs.

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Automotive and industrial manufacturing industries’ chief executive officers (CEOs) remain confident about growth prospects despite ongoing geopolitical uncertainties, cost pressures and rapid technology shifts, according to KPMG International.The firm’s 2025 Automotive and Industrial Manufacturing CEO Outlook, based on a survey of 230 global CEOs, said that 87 per cent of automotive and 81 per cent of industrial manufacturing leaders are confident about sector growth. However, around three-quarters expressed confidence in their own organisation’s ability to execute transformation at scale.The responses from 230 CEOs include 110 from the automotive and 120 from the industrial manufacturing sector.

It said that AI and digital technologies are emerging as key investment areas, with 81 per cent of automotive and 68 per cent of industrial manufacturing CEOs identifying AI as a priority. Around 70 per cent plan to allocate 10–20 per cent of budgets to AI, automation and digital initiatives.

“The global automotive sector is cautiously optimistic… The ability to execute at scale… will determine long-term competitiveness and value creation,” said Jeffry Jacob, Partner and National Sector Leader – Automotive, KPMG in India.

Supply chain and workforce focus

Supply chain resilience remains the top operational priority, cited by 47 per cent of automotive CEOs and 63 per cent of industrial manufacturing CEOs.S Sathish, Partner and National Sector Leader – Industrial Manufacturing, KPMG in India, said that companies are focusing on cost efficiency, operational resilience and technology adoption.

The report said 66 per cent of automotive and 69 per cent of industrial manufacturing CEOs are still adapting to regulatory and political differences across markets.

Companies are also focusing on partnerships and workforce development, with 58 per cent of automotive and 43 per cent of industrial manufacturing CEOs prioritising collaboration.