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- Self-driving cars will change which parts and suppliers automakers purchase from.
- UBS' has identified eight parts suppliers set to reap the rewards of a self-driving future.
Cars as we know them are about to undergo a radical transformation.
As our four-wheeled transporters become more eco-friendly, connected, and autonomous, the way automakers assemble vehicles will also need to radically change.
UBS analysts led by Colin Langan set out to identify the hardware makers, software developers, and other suppliers most primed to get a boost from this sea change, identifying eight stocks that will win from these indirect opportunities.
"Once drivers are eliminated, car interiors can be redesigned to emphasize comfort & flexibility. This implies opportunities for seating, electronics & suspension," UBS said. "AV (autonomous vehicle) seats may need to pivot & reconfigure. Increased emphasis on in-car entertainment should drive demand for electronic displays. In addition, AVs tend to offer a less smooth driving experience than human drivers, so automakers will likely rely on more advanced suspension products."
Here are the banks eight picks for stocks set to benefit from the self-driving car revolution: