Continental Boosts Electric Drive Spending By €300M For 2021, ICE Production To Peak In 2025
Continental has secured additional budgeting of some €300 million for hybrid and electric powertrain technology development by 2021, expecting a multi-billion-euro business opportunity to present itself around that time.
The total investment of the company over the past five years has already totaled €1 billion, so the Continental is no stranger to the space.
The company hopes that the sales turnover will increase from €130 million today to up to €1 billion by 2020/2021.
“Continental is ready to go. The technology company is approaching the most fundamental transformation in the history of vehicle drivetrain technologies in the next 15 years with confidence and full strength.”
Continental’s forecast is for about 10% pure electric drive systems in 2025, while almost 30% for hybrids.
Speaking of its more traditional, internal combustion engine business, the company still sees the growth continuing in the space, but sees a peak happening around 2025.
Chief Executive Officer of Continental Dr. Elmar Degenhart, noted the phenomenon while talking about growth prospects in the electric space:
This means that the combustion engine is actually yet to have its peak. We do not expect to see a slow decline in volumes until after 2025.