Continental projects up to $1 billion turnover in its Hybrid Electric Vehicle business
· Continental focuses on efficient
combustion engine technologies, hybrid and electric drive systems as electric-car
spend rises
· Global automotive technology company
to increase spend by more than $300 million with a focus on research and
development
· United Arab Emirates targets green
mobility and strives to reduce carbon emissions by up to 16% by 2021
Continental, the worldwide premium tyre
manufacturer and technology company, recently announced that it will divert increased funds into research and development of hybrid and
electric drive systems as part of the company’s new global “Powertrain Strategy
2020+”.
Focusing on two key targets, Continental is recognising the demand for the most
efficient combustion engine technologies that will lower carbon emissions and looking
to benefit from the prospective growth in environmentally-friendly hybrid and
fully electric drive systems. While Continental’s Powertrain division won’t
entirely move away from fine-tuning motors, it sees electric and hybrid
vehicles accounting for 40 percent of the global car market by 2025.
Commenting on Continental’s ‘Powertrain
Strategy 2020+’, Jose A. Avila, a member of the Executive Board and President
of Continental’s Powertrain division said: “Moving forward, we will gradually
implement our new strategy and expect a falling demand for newly developed
mechanic and hydraulic engine components. In accordance with this trend, we
will reduce our investment in these technologies, instead looking to the growth
in innovative electronic, sensor and software systems due to increasingly stringent
emission requirements worldwide.”
“Our Hybrid Electric Vehicle (HEV) business is
already experiencing a rising order intake. We expect a growing turnover of
approximately $130 million today to up to $1 billion by
2021. Continental is planning to pursue business opportunities of almost $2
billion by 2025, with further investment in research and development of
HEV-related technologies. This is why we intend to spend over $300 million
more than previously projected,” he added.
Meanwhile
in the Middle East region, the United Arab Emirates is leading the way in green
mobility and in line with an initiative targeting a 10 percent share for hybrid
and electric vehicles of all new cars purchased by 2020.
Moreover,
in association with the Roads and Transport Authority and Dubai Electricity and Water Authority, the Dubai Supreme
Council of Energy has set new targets to cut down carbon emissions by 16
percent by 2021 by increasing the green mobility share. This would mean that
all government organisations would be required to include hybrid and electric
vehicles in their fleets.
Continental is well-positioned to benefit from
the shift from traditional combustion engines as it offers a range of
components, sensors and sophisticated electronics systems for hybrid and fully
electronic cars. Along with an increased order intake and profitability, the
Powertrain division is forecast to be nine percent of global sales this year
and rise to approximately 10 percent in years to come.
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