The KPMG Global Tech Report 2026: Automotive highlights how the automotive industry is leveraging artificial intelligence (AI), data resilience, and digital technologies to navigate rapid technological transformation, evolving mobility ecosystems, and increasing competitive pressures.
According to the report, automotive organizations are moving beyond digital experimentation to strengthen their technology foundations, enhance operational resilience, and accelerate innovation at scale. By advancing AI adoption, improving data capabilities, and investing in digital transformation, the industry is positioning itself for sustained growth and competitiveness in the emerging Intelligent Age.
The KPMG Global Tech Report 2026: Automotive captures insights from 258 technology leaders across 22 countries and territories spanning OEMs, truck manufacturers, Tier 1 suppliers, new technology component suppliers and mobility solution providers. Representing organisations with annual revenues above US$1 billion, respondents included CIOs, CTOs, CISOs, Chief AI Officers and other senior technology executives, providing a focused view of technology priorities and transformation across the global automotive sector.
For India, these global themes are particularly relevant as automotive organisations navigate increasing technology disruption, evolving customer expectations and the transition towards increasingly connected, software-enabled and intelligent mobility ecosystems. As the sector continues to invest in digital transformation, organisations are focusing on balancing innovation with resilience, governance and scalable execution.
The report’s findings highlight the importance of strengthening data resilience, data sovereignty and local digital capabilities before unlocking targeted growth. For Indian automotive organisations, this underscores the need to build robust digital foundations while accelerating AI adoption across engineering, manufacturing, supply chains and customer-facing operations. As technology cycles continue to compress, the ability to adapt quickly, industrialise AI and scale innovation through disciplined execution will be critical to sustaining growth and maintaining competitiveness in the Intelligent Age.
Jeffry Jacob, Partner and National Sector Leader, Automotive, KPMG in India said “For India’s automotive sector, the findings reinforce that competitiveness will increasingly depend on how effectively organisations scale AI, data and digital technologies. These capabilities must move beyond pilots and into engineering, manufacturing, supply chains and customer-facing operations. Strong data foundations, clear governance and disciplined execution will be essential to convert technology investments into measurable value. As vehicles become more connected, software-enabled and intelligent, resilient digital capabilities will be critical to sustaining growth and remaining competitive in the Intelligent Age.”
Key findings from the KPMG Global Tech Report 2026: Automotive include:
- 88 per cent are confident in revenue growth over the next 24 months.
- 86 per cent agree that technology plans quickly become outdated, highlighting the pace of change facing the automotive industry.
- 74 per cent agree that advanced technology will be the primary driver of competitive advantage.
- 82 per cent feel the need to take more risks on technology
- 53 per cent state that poor legacy processes often result in poor ROI
- Automotive organisations are focused on moving from pilots to platform-scale execution by adopting standardised architectures, enforcing ‘golden paths’, and industrialising MLOps and data governance to accelerate AI deployment
- Companies are strengthening data resilience, sovereignty and local capability before unlocking targeted growth under tighter governance and financial control.
- Industry leaders are increasingly treating governance as a performance accelerator, enabling digital innovation while reinforcing cybersecurity, responsible AI principles and rigorous software-update controls.
- Organisations are prioritising technologies that deliver scalable ROI by building standardised digital capabilities that support real-time data flows, AI-powered automation and enterprise-wide efficiency
- Technology Responses to geopolitical and macro-economic uncertainty
o OEM-Vehicle Manufacturing – 67 per cent plan to enhance data sovereignty across their partnership ecosystem
o Truck Manufacturers- 61 per cent want to hire more onshore technology talent
o Tier 1 automotive suppliers – 41 per cent have stated they want to improve data flows and technology infrastructure to support scenario planning and enhance decision-making agility
o New Technologies components suppliers – 47 per cent want to tighten technology spending (e.g. optimize software licensing, platform usage, and consulting costs) due to concerns that geopolitical risks may increase input costs
o Mobility Solution Providers – 40 per cent plan to increase number of innovation center of excellence (COE) teams
Together, these insights point to an automotive industry at a critical inflection point. For India, the findings reinforce the importance of building resilient digital foundations, scaling AI and automation with confidence, and strengthening governance frameworks to support sustainable growth. Automotive organisations that can combine technological ambition with operational discipline will be best positioned to convert disruption into momentum and create long-term value in an increasingly intelligent and connected future.
