ARTICLE
28 January 2026

KPMG Global CEO Outlook - Industrial Manufacturing & Automotive

KP
KPMG

Contributor

KPMG in China has offices located in 31 cities with over 14,000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.

KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organisation or to one or more member firms collectively.

Bold leadership is imperative in today's dynamic environment. Industrial manufacturing and automotive CEOs must proactively navigate a landscape defined by continual change...
Hong Kong Strategy
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Challenging times call for strong and bold leadership

Bold leadership is imperative in today's dynamic environment. Industrial manufacturing and automotive CEOs must proactively navigate a landscape defined by continual change, seizing emerging opportunities and addressing complex challenges head-on. With electrification, AI, including agentic AI, and digitalisation transforming every aspect of production and customer engagement, leaders are called to drive innovation, resilience, and sustainability. By closely monitoring emerging trends and adopting agile strategies, CEOs are actively positioning their organisations to keep pace with rapid industry transformation. This report provides a comprehensive understanding of how leaders worldwide are responding to disruption, leveraging technology, and driving sustainable growth in a fast-evolving landscape.

1. Optimism & Caution

While 87% of automotive and 81% of industrial manufacturing CEOs are confident in their sector's growth, only about three-quarters feel optimistic about their own company's prospects, highlighting the challenge of executing transformation at speed and scale.

2. Technology & AI

AI is a top investment priority, with 70% of CEOs planning to allocate 10–20% of their budget to AI in the next year. Generative and agentic AI are seen as game-changers, but a gap remains between ambition and execution.

3. Supply Chain Resilience

The #1 operational priority is building resilient supply networks to withstand geopolitical and resource pressures. Nearshoring, digital visibility, and AI-powered monitoring are key strategies.

4. Talent & Leadership

Attracting and retaining AI talent is a major challenge. CEOs are investing in upskilling, external expertise, and fostering adaptable, tech-savvy workforces.

5. Sustainability

Sustainability is shifting from compliance to a strategic lever for value creation. AI is increasingly used to optimise energy, reduce emissions, and support climate goals.

Key findings

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The industrial manufacturing and automotive sectors are undergoing a monumental shift. Electrification, AI, and digitalisation aren't just buzzwords; they are driving fundamental changes in production and customer engagement. To succeed, leaders must focus on building resilient supply chains, investing in upskilling their workforce for new technologies, and embedding sustainability into their core operations. These are the critical levers for navigating this transformative period.
Derek Yuen
Partner
Head of Industrial Manufacturing
Hong Kong SAR
KPMG in China

Supply chain resilience

AI investment

47 percent in Automotive and 63% in Manufacturing say supply chain resilience is the top operational priority. Approximately 70 percent of Automotive and IM CEOs plan to allocate 10-20 percent of their budget to AI over the next year.

Why download this report?

By downloading the 2025 Industrial Manufacturing & Automotive CEO Outlook report, you'll unlock unique perspectives on:

  • Discover actionable strategies from CEOs in industrial manufacturing and automotive for thriving in an era of disruption.
  • Benchmark your organisation against global industry leaders.
  • Gain insights into technology, talent, and sustainability trends shaping the future of industrial manufacturing and automotive sectors.

Enhance your strategic planning with expert analysis and actionable insights from CEO's of leading automotive and industrial manufacturing companies.

Download the report >

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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