POS­SI­BLE LOSERS FROM THE ELEC­TRIC VE­HI­CLE REV­O­LU­TION

Shares - - UNDER THE BONNET -

1Auto fi­nance in­dus­try – scrap val­ues for com­bus­tion en­gine cars could fall, so lower re­cov­ery rate if the lender needs to re­pos­sess and re­sell. Loan vol­umes could also fall if EVs last longer, so fre­quency of ve­hi­cle re­place­ment de­clines.

2Auto deal­er­ships – could see re­duc­tion in ser­vice work as EVs have fewer work­ing parts. Au­ton­o­mous driv­ing ca­pa­bil­i­ties could help re­duce road traf­fic ac­ci­dents, so po­ten­tially fewer ve­hi­cles to fix so re­duced de­mand for spare parts.

3Mo­tor in­sur­ance in­dus­try – ex­perts be­lieve EVs could be safer on the road than tra­di­tional cars, so fewer ac­ci­dents could push down in­sur­ance pre­mi­ums.

4Oil sec­tor – re­duced petrol de­mand could hurt the oil in­dus­try, prompt­ing smaller play­ers to po­ten­tially go bust and pos­si­bly driv­ing merg­ers among the larger play­ers.

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