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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.
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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.
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