Hyundai, VW to gain share, auto executives predict

Hyundai, VW to gain share, auto executives predict

As auto sales slow in future years and competition heats up, incentives will become more aggressive and Hyundai and Volkswagen will continue to gain share. Those are the predictions of auto executives surveyed by Booz & Co. for its third annual U.S. Automotive Industry Survey and Confidence Index.

For now, confidence in the industry is high, thanks to surging sales and record profitability. But survey respondents expect overall vehicle sales growth of just 1.4 percent from 2013 to 2017, well below the 10 percent pace of 2010 to 2013. The forecast of 16.3 million vehicle sales in 2017 is lower than most industry forecasts.

Other findings:

More aggressive use of incentives is likely during the next six months.

Industry efforts to drive greater adoption of alternative powertrains continue to face strong headwinds. Respondents expect only 20 percent of cars to be powered by electricity, natural gas and other alternative power sources by 2020, down from last years prediction of 24 percent. And those numbers depend on continued government support.

Hyundai, VW, BMW and Ford will continue to gain share. GM will see small market losses, and Subaru and Nissan will see larger losses.

Some 70 percent of OEM executives are confident about their offerings in in-vehicle entertainment, telematics and the connected car. But more than half admit they dont have integrated solutions.

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