An Industrial Revolution for The Car Market Starts Now!

There can be little doubt that the global automotive market is about to undergo a rapid and permanent revolution! It will be fascinating to see how the market develops and who the winners and losers turn out to be.

As this short video from the FT explains, the world’s car manufacturers are racing to electrify their product ranges.  VW has set an objective of producing 50 pure electric car models by 2025 and another 30 hybrid models.  The estimated investment by VW is around 70bn Euros by 2030.

Not to be outdone, Mercedes is aiming to have electrified its entire product range by 2022. 

The shift to electric is happening much faster than most industry observers ever imagined.

A key consequence is that profit margins of car makers are likely to fall, particularly given the costs associated with obtaining battery supplies and redesigning cars.