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Low carbon innovation is road to future sales - new report

Thu 18 January 2018 | Back to news list

A new report by CDP (formerly Carbon Disclosure Project) says that the global motor industry is facing a double hit of disruption from the rise of EVs and autonomous and shared driving. It says that over a fifth of profits are likely to shift to technology companies like Uber and Google by 2030. The report ranks 16 of the world’s largest publicly listed motor companies on readiness for a low carbon transition.

The report says that the sector has become "a poster child for changes in other industries". Its transformation is set to have a dramatic impact on demand for oil and electricity.

The companies included in the report (‘Driving Disruption: Which automotive companies will seize the opportunities in a low-carbon economy?’)  have a total market capitalization of US$790 billion and represent over 75% of the global passenger vehicle market. 

According to the report, over 30% of new car sales are projected to be zero emissions and plug-in hybrid by 2030, representing a potential US$1 trillion market. By 2022, EVs could become as affordable as petrol and diesel cars, making it easier for car makers to profit from a low-carbon economy. 

CDP CEO Paul Simpson said technology and software disrupters have forced the car industry to innovate quickly to ensure their survival in the low-carbon transition. Traditional car companies are increasingly investing (over US$11 billion since 2015) in autonomous and shared vehicle companies, and are setting aggressive electric and autonomous vehicle targets. 

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