After years of incremental change, the electric vehicle revolution appears to be just on the horizon, according to Legal & General Investment Management (LGIM).
Anton Eser, chief information officer at LGIM, said with new hardware and software improvements within reach, futuristic vehicles are set to boom within the next decade.
"Much like Henry Ford’s original low-cost assembly line, these innovations are capable of redefining the future of transportation – with significant implications for investors as well as consumers," Eser said.
Car manufacturers and analysts have estimated that battery costs for electric vehicles will continue to decline, moving closer towards cost parity with internal combustion engines (ICEs) over the next decade.
“The breakeven point for electric vehicles will arrive sooner than markets expect, driving adoption," said fund manager Shaunak Mazumder and strategist Lars Kreckel.
“There is also a sharp rise in regulatory compliance on existing ICEs. A growing number of countries are tightening emission norms, but the room to improve a mature technology like the ICE is very limited. The only realistic way to reduce the overall emissions is to sell more electric vehicles, they said.
The research follows an announcement yesterday that China was mulling possible plans for a ban on sales of petrol cars in the country "in the near future".
Meanwhile, European car bosses gathered for the Frankfurt auto show where the conversation revolved around electric vehicles with Daimler, Volkswagen and PSA Group giving details on their electric programmes.