Autonomous vehicle market to impact on collision repair sector

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Carmaker revenues from collision parts could drop by nearly 50% by 2020 following the introduction of autonomous vehicles, according to research by the KPMG U.S. Manufacturing Institute Automotive Center.

Autonomous Ford vehicles on test

Most OEMs expect to be selling fully self-driving vehicles between 2020 and 2025, if not sooner.

The new report, “Will autonomous vehicles put the brakes on the collision parts business?,” notes that despite accounting for less than 3% of OEM revenue, collision parts make up on average 10 to 20% of operating profits. Based on the revenue impact, OEMs can expect a 4 to 9% reduction in operating profits by 2030 and a reduction of 13% by 2040.

“OEMs have already begun to deal with the design and engineering challenges related to autonomous vehicles,” said Gary Silberg, KPMG’s US automotive leader. “And while their focus may be on bringing the first self-driving cars to market, OEMs need to contend with the decline in demand for collision parts that these safer, autonomous vehicles are expected to bring by reducing driver error and lowering accident rates.”

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.