Motor finance was named as the most-important value-added service by worldwide respondents to the 2013 KPMG Global Automotive Executive survey.

From the survey of 200 automotive executives from 31 countries, conducted by the global accounting network, 82% of respondents, and 90% of respondents in BRIC nations, listed finance as an "extremely important" or "important" value-added service.

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Finance was put ahead of all other services, up from fourth in 2012, when 60% of respondents said it was important.

According to the 2013 results, service quality during the purchase transaction was second with 80% of respondents saying it was important. Servicing options during the vehicle lifespan was third with 77%; then warranty options on 74%; quick and conscientious response to product recalls on 63%; and financing of e-components on 36%.

Captives

Captive finance providers were listed as an integral part of future business in mature markets for manufacturers by 71% of respondents, while 80% said captives were integral in emerging markets.

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The survey noted the Western European market was both competitive and dominated by captives, with car sales at a plateau, additional revenue could be sought and found in banking, mobility and insurance services.

It also highlighted consumer credit was a relatively recent concept in both the Chinese and Russian markets. In China, according to KPMG, the opportunity lay with the early market entrants and, in Russia, with those finance companies ready to expand deals, service networks and banking and fleet services.

The US was described as a "mature and highly fragmented environment" where captives ruled in new sales and banks ruled in used, while India was an "underdeveloped" market with "high potential" for finance growth starting with the introduction of basic finance products and services.

Investment

Accordingly, 70% of all respondents said they were "beginning" or "increasing" investment in the China automotive market, split between 66% of respondents in North America, Western Europe and Japan, and 76% of respondents in BRIC nations.

The market in India was second with 63% of respondents saying they were investing in it, with Russia third on 54%, then Brazil on 48% and South Africa on 45%.

47% of respondents believe between 41 and 50% of global new car sales will be in BRIC markets by 2018.

richard.brown@timetric.com