Question

In: Economics

Are there any segments of the world automobile market that you think will offer superior profitability...

Are there any segments of the world automobile market that you think will offer superior profitability over the next five years?

Solutions

Expert Solution

I believe the supporting infrastructure like charging stations, cloud based navigation and traffic routing algorithms etc. would start to matter more in developed countries as far as the hardware goes with more and more manufacturers. pushing towards hybrid and battery only power trains battery recycling and upgrades could be a profitable end of the business also given the number of cars on road a push towards shared car services like uber mixed with some sort of individual element (for example someone could drive their car to work but it can be used by other people using some app or authentication mechanism when the person is working)cold come into existence and reap significant profits from one car for people. Again accessories will be a huge cash cow as will be modular upgrades (if they ever design cars that way) and of course this is me just speculating and it is geared towards revenue sources opening up based on future technology .Also recycled manufacturing materials could be a good income stream as more and more companies push towards recycled metals/interior fibres and surfaces


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