Car of the Future

Invest in the two most important disruptive trends to hit the automotive industry in 110 years.

By 2040, 35% of all new vehicles sold globally are expected to be electric vehicles.

Sales of electric cars rose 60 percent in 2015.

The average price of lithium-ion battery packs used in EVs fell 65% over the period 2010–15.

The economic impact of autonomous vehicles is estimated to be $US200 bn to $US1.9 tn per year by 2025.

The global automotive industry is at an inflection point; one that is probably as important as the transition to mass production pioneered by Ford Motor Company in the early twentieth century. Let’s face it, after 110 years the automotive industry is ripe for another disruption.

Not only is the internal combustion engine under threat by regulation and alternative sources of power but driving itself may change dramatically with semi-autonomous and autonomous vehicles on the way along with ride sharing (Uber, Lyft) imperilling car ownership itself. Within this massive paradigm shift are two attractive and investible disruptive sub themes – the electrification of the automotive fleet, and the proliferation of semi and autonomous vehicles.

These two themes are attractive because it is very early in the adoption cycle, the addressable market is global and extremely large, regulation is a positive not a negative force, and the major players are numerous and well capitalised.

Read more about the Car of the Future from International Investment Specialist, Clay Carter.

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