While there is tremendous interest in the EV and hybrid automobiles segments, automobile executives do not expect a very hefty 13 years for this segment. However, they would rather lay a bet rather than lose out if it turned out otherwise, so they have decided to invest in the segment despite odds and just let it play itself out and let the market decide.
A survey conducted on about 200 auto executives globally brings out that:
• 81 percent anticipate larger investments in battery packs and battery cell technology;
• 85 percent believe automakers will invest in more electric motor production; and
• 76 percent expect more investment in electronics for electric vehicles.
“They are hedging their bets,” interprets Gary Silberg, national auto industry leader for the U.S. financial consulting firm KPMG LLC. KPMG conducts the executive attitude survey each year.
“They are saying that we don’t know yet what the winning vehicle technology will be for the future, and so they are going to invest in all of it and let the market decide.”
It’s a gamble. But it may be well worth it. Only time will tell.
