EY - Automotive Capital Confidence Barometer

Automotive Capital Confidence Barometer

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Our eighth Capital Confidence Barometer in the automotive industry shows rising levels of confidence in economic growth, employment growth, credit availability and corporate earnings, all leading indicators that support automotive executives’ positive sentiment toward the global economy.

This sentiment is reflected throughout the Barometer with companies indicating an increased willingness to carry out growth agendas.

Sixty-one percent of respondents are focused on growth, the highest level in two years. When combined with increased confidence in the number, quality and likelihood of closing transactions compared with 12 months ago, this growth focus has translated into increased M&A appetite within the sector.

For the 38% of executives pursuing acquisitions, also at a two-year high, the emphasis will be placed on the emerging markets of India, Brazil and China as the top investment destinations.

Key findings

  • 61% consider growth their primary focus
  • 38% plan to pursue an acquisition
  • 70% expect deal volumes to improve
  • 54% have a greater focus on investing in emerging markets
  • 88% view credit availability as stable or improving
  • 61% see the global economy as improving, pushing economic confidence to a two-year high

Q: What is your perspective on the state of the global economy today

EY chart showing automotive executives’ perspective on the state of the global economy

About this survey

The Global Capital Confidence Barometer gauges corporate confidence in the economic outlook, and identifies boardroom trends and practices in the way companies manage their Capital Agenda — EY’s framework for strategically managing capital.

  • In September we surveyed a panel of over 1,600 executives in 72 countries. Half were CEOs, CFOs and other C-level executives.
  • More than 900 companies would have qualified for the Fortune 1000 based on revenue.
  • Automotive companies accounted for 173 of the respondents with more than 60% having revenue in excess of $1bn.