Autonomous vehicle market to impact on collision repair sector

By / 1 week ago / News / No Comments

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.”

For more of the latest industry news, click here.

Natalie Middleton

The author didn't add any Information to his profile yet.