KPMG International’s Automotive and Industrial Manufacturing CEO Outlook 2025 highlights a sector navigating uncertainty with cautious optimism, driven by AI adoption, supply chain resilience and long-term value creation.
Based on insights from 230 global CEOs, including leaders from India, the report underscores how automotive and industrial manufacturing sectors are undergoing one of their most significant transformations, shaped by geopolitical challenges, cost pressures and sustainability demands.
Despite these headwinds, 87% of automotive CEOs and 81% of industrial manufacturing leaders remain confident about industry growth. However, a notable execution gap persists, with fewer leaders expressing confidence in their ability to deliver transformation at scale.
Artificial intelligence has emerged as a central investment priority, with nearly 70% of CEOs planning to allocate 10–20% of budgets toward AI, automation and digital technologies. Organisations are increasingly leveraging AI to enhance forecasting, predictive maintenance, quality control and supply chain visibility.
In India, these trends are amplified by strong domestic demand, infrastructure growth and localisation efforts. However, companies must simultaneously accelerate decarbonisation, strengthen digital maturity and build future-ready talent to remain competitive globally.
Jeffry Jacob said, “The sector is cautiously optimistic, with leaders focusing on resilience and technology-led productivity. For India, this marks an inflection point where scaling AI deployment alongside sustainability will define long-term competitiveness.”
S Sathish added, “In a dynamic geopolitical environment, cost efficiency, resilience and technology adoption are becoming essential. Workforce skilling and decarbonisation are no longer optional but critical to sustained growth.”
Supply chain resilience remains the top operational priority, while CEOs increasingly view AI-driven productivity and data-led decision-making as key to improving margins. At the same time, talent gaps—particularly in AI capabilities—pose a major challenge.
Overall, the report signals a clear inflection point. Companies that successfully integrate AI, strengthen supply chains, invest in talent and embed sustainability into core strategies will be best positioned to lead the next phase of industrial growth.
