Mexican Media Brands
Autonomous Cars Could Cut Crash Repair Revenue Nearly 50%
As more cars become able to drive themselves, carmakers can expect the $5.6 billion they generate each year from selling collision repair parts to plunge to $2.7 billion by 2030 and only $1.4 billion in 2040, according to KPMG’s Manufacturing Institute Automotive Center.
#economics
Share
As more cars become able to drive themselves, carmakers can expect the $5.6 billion they generate each year from selling collision repair parts to plunge to $2.7 billion by 2030 and only $1.4 billion in 2040, according to KPMG’s Manufacturing Institute Automotive Center.
The study says crash repair parts generate only 3% of average carmaker revenue but contribute as much as 20% of operating profits. That equates to a 13% drop in operating profits by 2030.
Carmakers are introducing advanced driver aids such as blind-spot warning systems, automatic braking and lane-keeping assist. Such features will help slash the average crash rate more than 60% by 2030 and 80% by 2040 compared with today’s level, KPMG says.
RELATED CONTENT
-
On Electric Pickups, Flying Taxis, and Auto Industry Transformation
Ford goes for vertical integration, DENSO and Honeywell take to the skies, how suppliers feel about their customers, how vehicle customers feel about shopping, and insights from a software exec
-
ZF in the Oasis
What you’re looking at is the “Intelligent Rolling Chassis” ZF has developed for the Rinspeed Oasis, a concept vehicle.
-
GM Develops a New Electrical Platform
GM engineers create a better electrical architecture that can handle the ever-increasing needs of vehicle systems
