All the talk on Wall Street these days is whether the auto industry will suffer a dire fate from so-called "peak car" — the phenomenon similar to the peak oil thesis floated years ago that states U.S. auto sales are near their maximum point.
But Jefferies disagrees with this secular sales decline thesis. The firm sees sustainable car-industry growth ahead enabled by electric cars and shared mobility technologies.
"The cycle has peaked near term, but there is still structural growth in demand. The drivers of 'New Autos', from electrification to autonomous and car-on-demand, all point to higher demand, better mix and faster replacement cycles," analyst Philippe Houchois wrote in a note to clients Tuesday.
"De-carbonisation and shared mobility are the antidotes to 'peak car' and that keeps us constructive about OEMs in a low-growth world," he wrote.