Investors
Novum Autoworks is planning for an investment round as we scale from product
prototypes to production. The initial product lines include a full kit car, as
well as a line of electric conversion kits.
Market
Market Sizing
The aftermarket specialty equipment and accessory market size for sports cars is 3.5Billion dollars annually, with 63% of those purchased accessories or equipment installed DIY. Out of the broader market segment for people who modify vehicles, 44% are enthusiasts who build as a hobby, build to make a driving experience better, or modify as part of their social life. -Source SEMA Market Reports
Additionally, the composites market is currently around $20B for automotive and sport/recreation sectors with a 7.6% compound annual growth rate - Source American Composites Manufacturer Association, Grand View Research
Top Kit Car Players
The top several kit car and exclusive sports car companies such as Arial
Motor Company, Factory 5, and Ultima generate an average of $10million in
revenue each. While a solid baseline for a business, this figure reflects the
inability for current kit car manufacturers to penetrate mainstream markets and
leverage expertise for external services and manufacturing.
Several companies supporting the electrification of vehicles have emerged,
including players in the mainstream electronics and control spaces such as AEM.
With these supporting components in place, many talented experts are performing
conversions of fossil fuel burning vehicles to electric power plants. These conversions
require a high level of integration, along with structural design and
fabrication to accommodate drastically different powertrain components, along
with a large payload of batteries. A subsequent market gap is emerging where in
the expertise, engineering, and integration of these complex systems are kitted
into a package that a normal enthusiast can entertain.
Schedule
Novum aims to quickly establish itself as a revenue generating business with quick product to market, capture of expanded market segment due to novel product positioning, generation of compounding reoccurring revenue due to an aftermarket parts sales, and the leveraging of manufacturing technology and engineering for external contracting and supply business.
Outside the Cusp
The Kit Car Industry
The explosion of the affordable supercar market has been driven by OEM's in their
ability to package supercar levels of performance into cars with attainable
prices. GTR, Corvette, Supra, and even Mustang, 370z, and WRX STI have provided
a level of performance previously un attainable to the average person. As a
result, the sports car aftermarket automotive segment is thriving.
Additionally,
the performance hype around vehicle electrification, along with pressure from environmental
agencies to in some cases, eliminate the performance tuning of fuel burning
engines all together. Whether or not a doomsday scenario for performance tuning
of fossil fuel burning engines is a reality, the market for conversion of fuel
burning cars to electric power is an emerging market explosive growth,
particularly in states like California where tuning laws are more strictly
enforced.
Though once a platform for establishing legendary automotive OEM's like Lotus and Shelby, the kit car industry has since lapsed into a niche trade. As a result it sits just outside the cusp of main stream aftermarket equipment markets of recent decades. Novum Autoworks believes the chasm is caused by outdated design and manufacturing, a focus on aesthetics over performance, general poor quality and ownership experience, the need for extensive build and fabrication skills as a consumer, and a build time of 1000's of hours.
redefined
A Market Paradigm
Novum aims to build a bridge between the niche kit car market and the main stream performance car aftermarket by introducing products that have OEM level quality and design that are produced by modern engineering and manufacturing processes. Further more, modern marketing practices targeted at the current generation of automotive enthusiasts will accelerate growth of the market segment.
Additional business avenues will stem from the acquisition of capital equipment and engineering resources in order to provide Novum's expertise in composites production and automotive engineering for manufacturing and contract services for automotive OEM's and aftermarket equipment companies.
