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16 handpicked stocks

Internal Combustion Engine Stocks (ICE Resurgence)

General Motors' multi-billion dollar write-down on its electric vehicle program signals a broader slowdown in the consumer transition away from gasoline-powered cars. This theme identifies an opportunity in companies that stand to benefit from the continued dominance and potential resurgence of the internal combustion engine vehicle market.

Author avatar

Han Tan | Market Analyst

Published on January 9

Your Basket's Financial Footprint

This basket's total market capitalisation is $732.20B and is dominated by a few very large-cap constituents, giving it a broadly stable, large-cap profile.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and returns that track broad market trends, reducing idiosyncratic risk.
  • Suited as a core, long-term holding to provide stable exposure, not as a speculative, high-growth allocation.
  • Expect steadier, incremental appreciation over time rather than rapid, short-term gains; growth tends to be moderate.
Total Market Cap
  • GM: $79.41B

  • F: $57.38B

  • TM: $331.90B

  • Other

About This Group of Stocks

1

Our Expert Thinking

GM's recent £5.6 billion writedown on electric vehicles signals a broader shift in the automotive landscape. As the transition to EVs encounters headwinds from reduced subsidies and changing regulations, companies tied to traditional internal combustion engines may experience sustained or even increased demand as automakers extend the life of their petrol-powered models.

2

What You Need to Know

This group spans the entire internal combustion engine value chain, from major automakers producing popular petrol vehicles to component manufacturers and aftermarket suppliers. These established companies are positioned to benefit from a more gradual shift in vehicle technology, potentially serving as a tactical addition during this period of industry recalibration.

3

Why These Stocks

Each company has been handpicked by professional analysts based on their integral role in the ICE ecosystem. From Ford's iconic F-150 trucks to suppliers of essential engine components and aftermarket parts retailers, these stocks represent firms that could see renewed strength as the automotive sector adjusts its electrification timeline.

Why You'll Want to Watch These Stocks

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Industry Recalibration

Major automakers are extending the life of their petrol models as EV adoption slows. This shift could create unexpected opportunities for traditional automotive companies.

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Established Revenue Streams

These companies have decades of experience and proven business models built around internal combustion engines, positioning them to capitalise on sustained demand.

Market Surprise Potential

As the market has heavily focused on electric vehicles, traditional automotive stocks may be undervalued, creating potential for significant gains if ICE demand proves resilient.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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