Towards a new normal: powertrain mix to diversify rapidly

Few, if any, can say with certainty what the automotive industry will look like in ten years’ time. Autonomous driving and improved connectivity pose open-ended questions, answers to which hold untold consequences for OEMs and customers.

Nonetheless, the path for powertrain development is clear, because everyone is moving in the same direction towards a common goal; namely, major reductions in CO2 emissions. Although the global market for combustion engines will grow until at least 2025, due to underlying demand growth in Asia, growth after that date will be offset through the emergence of alternative powertrain types, in all markets.