Posts Tagged ‘auto sales to stop growing’

Traditional Automakers Could Be Left Out in the Cold By the Rise of Electric and Autonomous Vehicles

Ride-sharing services could turn car manufacturing into a low-profit commodity business, says new study.

by on Jan.11, 2018

Waymo is already testing autonomous ride-sharing vehicles and will soon add fully driverless ones.

A century of growth seems likely to come to a screeching halt for the global auto industry, and that spells potentially serious trouble for major automakers, according to a new study – though the report also anticipates big opportunities for ride-sharing services.

It is widely expected that the auto industry will go through more radical changes in the coming decade or so than it has since Henry Ford fired up his first moving assembly line. Among other things, the report by the Boston Consulting Group, or BCG, anticipates that electrified vehicles will soon become commonplace, while millions of motorists in the U.S. and abroad will switch from owning a car to relying on ride-sharing services like Lyft and Uber.

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The Future is Now!

So, while global auto sales will continue to grow to around 108 million annually, “We will (then) reach a plateau around 2029 or 2030,” forecast Thomas Dauner, the head of the auto practice at BCG. “An industry that has been growing over the past century will stop.”

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