◽ The Electric Cup. Electric Vehicles (EV) enjoy a strong growth
momentum: the worldwide stock could exceed 3 million cars in 2017
after crossing the 2 million unit threshold in 2016. China, the US, the UK,
France, and Germany are in pole position. The magnitude of government
subsidies, the expansion of the charging network, and battery prices will
drive the growth of the electric car market.
◽ The Profitability Cup. The industry enjoys strong profitability with
an average EBIT margin of 6.0 % in 2016, up from 5.5.% in 2015. Japanese
manufacturers and Italian suppliers take the lead. With the exception of
American and Italian car makers, the debt burden of manufacturers is
now lower than their pre-crisis levels. Working capital requirements and
capital expenditures are stable.
◽ The Innovation Cup. Innovation will rely on R&D expenditure,
patentable technology, and M&A. Traditional manufacturers in Germany,
Japan and the US lead the first two categories, while China automotive
sector is the world leader for ICT M&A, totalling USD6.2bn over 2012-2017.