There has been a constant change in global automotive mobility influenced by many factors. Let’s take a look and understand what they are and how the future is.
There may be uncertain drivers which have brought the global automotive mobility to a crossroads, with the major ones being constant change in technology and market trends and the economic consequences the pandemic brought with it. There has only been a compound growth of 2%, which is a slight increase on current figures but, a significant drop compared with recent prognoses.
The pandemic has influenced people to purchase their own transport for the sake of safety and to be socially distanced but there are two sides to a coin always. The expectation is that as the pandemic recedes, these numbers will fall back somewhat, though the perceived importance of car ownership will remain high.
There has been considerable amount of excitement in the domain of autonomous driving. The future is moving towards cars which will drive themselves, however, there are many factors to consider before all this comes into action. The technology is not as refined yet with many discrepancies. This might cause reluctance in people to switch to autonomous ways of transportation, unless it becomes reliable.
A major reason for this reluctance seems to come down to fears over safety. This might be due to the well-publicized accidents around the world involving autonomous vehicles. Apart from safety, personal data breach by OEMs is a major thing to consider and how the mobility service drivers will protect them. Automotive mobility still has a long way to go.
People are becoming increasingly concerned about environment and climate change. If people are willing to give up their cars, at least to some extent, perhaps they will be looking to switch to alternative mobility services. People residing in urban areas are already used to ride-hailing and have had the experience of sharing a ride. The emissions figures in rural areas are much lower which consequently translates to lesser people experiencing ride-sharing.
At the moment, technical and infrastructural barriers remain a real impediment to the profitable implementation of these kinds of services and that is likely to remain the case for the immediate future. Overcoming these challenges would be catalyst for much wider and rapid adoption of automotive mobility services.
While autonomous vehicles currently may be a step too far, that does not mean people will not embrace other technologies. The fast-growing demand for alternative powertrains suggests that rapid change is in the air with plug-in hybrids and EVs very much on an upwards trajectory. A large number of people are willing to switch to electric powertrains after the hybrid powertrain boom in 2018. The ICE might soon be de-throned but market growth is hampered with only limited options available.
With customer sentiment moving towards electric, the unwillingness or inability of established car brands to fill this gap could see many once-loyal customers migrating to new and emergent OEMs with a more exciting offering. Moreover, with the lack of supporting infrastructure, people are still skeptical to move towards an electric vehicle.
Whatever the vehicle type, buying a car remains a significant and highly personal experience. People prefer a sales process which is customer-centric. Even with the restrictions with regards to the pandemic, most people did not buy their car without having had at least one personal or face-to-face consultation with a traditional dealer. Younger customers visited dealerships more often than their older counterparts.
The global automotive mobility has come a long way and has seen a rapid growth in many aspects over the years. Major technologies which eliminate human intervention are yet to be refined and presented in a manner, which will boost the confidence of the people at large. Online car-lot system is supposedly, one of them.