The likely contraction of the petrol market because of fuel efficiency and the growth of electric vehicles has underscored the necessity to be disciplined in any acquisition in Caltex Australias existing core business. Mr Gailey said Caltex did not expect the big auto manufacturers to be producing a good mass-market electric car at a realistic price point until the early 2020s, predicting that by 2025 new EV sales would probably be about 10 percent of the light vehicle sector.
- He said the main challenge in the short term was an expected reduction in fuel consumption in the light vehicle market of about 5 per cent by 2025 due to improvements in fuel efficiency.
- We believe that we have many good years ahead of us before we will be confronted with these challenges
- Now is the time to be developing a game plan to not only deal with the ultimate eventuality but to seek out the opportunities that these changes present.
“The advent of autonomous vehicles would probably change the whole concept of vehicle ownership, he said, but a fully autonomous vehicle was probably still some way off as it would require artificial intelligence close to human levels.”