KPMG: 68% of auto CEOs near‑shoring

KPMG says the auto industry is reorganizing its supply chains closer to home, with 68% of companies actively restructuring around regional or local-for-local models. (assets.kpmg.com) The figure comes from KPMG’s 25th Annual Global Automotive Executive Survey, published in September 2025, which surveyed 775 senior executives across automakers, suppliers, dealers, mobility and finance. (assets.kpmg.com) KPMG’s separate India industrial manufacturing and automotive CEO outlook, published April 2, 2026, said 47% of automotive CEOs now rank supply-chain resilience as their top operational priority. About 70% said they plan to devote 10% to 20% of budget to artificial intelligence over the next year. (kpmg.com) The change follows several years of shocks that made long, globally stretched supply chains harder to defend. KPMG’s automotive survey lists geopolitical upheaval, regulatory change, supply-chain vulnerabilities and faster technology cycles among the pressures reshaping the market. (assets.kpmg.com) Near-shoring in autos means moving factories, parts sourcing and engineering work closer to the markets where vehicles are built and sold. KPMG describes the shift as region-focused and local-for-local, rather than a single global network optimized only for cost. (assets.kpmg.com) India is trying to position itself as one of the places that can absorb that rerouting. The Dedicated Freight Corridor Corporation of India says its freight-only rail network is meant to cut congestion, raise rail speeds and lower logistics costs for industries including automobiles. (dfccil.com) DFCCIL says India’s trunk rail routes have been running above optimal capacity, with average freight train speeds around 25 to 30 kilometers per hour before the dedicated-corridor push. The agency says congestion and uncertain transit times had been raising costs for sectors such as cement, steel, fast-moving consumer goods and autos. (dfccil.com) As of July 2024, official data cited by The Economic Times showed 96.4% of the Western Dedicated Freight Corridor operational, with the final 100 kilometers targeted for completion by December 2025. The same report said freight transit time between western ports and north India had been reduced by almost 50%. (economictimes.indiatimes.com) Suppliers are also reorganizing around customers that want more local engineering and faster coordination. Tata Technologies said in March 2025 that it was deepening work with automakers and Tier-1 suppliers through dedicated account teams spanning client, delivery and transformation roles. (tatatechnologies.com) That strategy is showing up on the ground. In an interview published April 26, 2026, Tata Technologies Chief Executive Warren Harris said the company planned to grow its Gothenburg office from 75 employees to about 200 by year-end to support Volvo Cars, with a stronger emphasis on local expertise. (ttlwebassets.tatatechnologies.com) KPMG’s survey suggests this is no short-term detour. It found 77% of auto companies say alliances and partnerships have contributed or will be important to growth, a sign that regional supply chains are being built as networks, not just as standalone plants. (assets.kpmg.com) The result is a car industry that is still global in sales and technology, but increasingly regional in sourcing, logistics and engineering. KPMG’s data suggests executives now see resilience, not just low cost, as the basic rule for how the next supply chain gets built. (kpmg.com)