According to reports, we may have reached what's being coined "peak car." Not sure what that means? Well, let me explain.
Essentially, it's a term that illustrates we're done with growth in the automotive sector. Between regulations, changing consumer tastes/needs and the influx of ride-sharing applications, the space is decelerating.
This has some Wall Street analysts forecasting doom and gloom for the space. And if you start looking at the charts laid out in this Business Insider story, you may start to buy-in to the narrative.
Having said that, if true, the sector is in for a rather rude awakening. Consolidation will happen in order for businesses to continue moving forward. This got me thinking:
WHICH automakers would YOU like to see join forces to ship all-new autos?
For the auto business, "The pain is just beginning," according to Nomura analyst Masataka Kunugimoto and his team. "We now expect global auto demand to be down 3%," year on year, in 2019, he told clients recently.
He is not alone. At bank after bank, analysts are coming round to the idea that the world may have passed "peak car," and that in the future humans will need fewer personal vehicles.
Certainly, they are telling clients, diesel vehicles will collapse into a small niche as their polluting exhausts are regulated out of existence. Petrol/gasoline vehicles will be next, as governments in Europe and the United States set dates for manufacturers to switch their models to electric...
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