Will We Still be Driving In 20 years?
A global automotive survey issued by KPMG discovered that 74 per cent of UK Automotive executives estimate that the amount of privately owned cars may drastically plummet within the next two decades. Indeed, with technology veering towards automated driving services, we could see an increase in automated taxi services and a reduction of “foot-to-pedal” driving.
The report also illuminated the change in attitude towards vehicle engine types throughout the past five years; it stated that 62 per cent of those surveyed thought that diesel powered cars were outdated, and 93 per cent of people said they would be looking towards investing in electric powered and hybrid engine types within the next 5 years.
According to market researchers, the expectancy is that electric powered cars will begin to emerge dominant throughout the marketplace within the next decade.
John Leech, UK Head of Automotive at KPMG, announced that: “The UK is particularly suited to the early adoption of self-driving cars consumed as a service. Our greenbelt policy has created a relatively dense urban population which, when coupled with our high fuel prices, means that so-called “robot taxis” offer a greater cost saving to the UK public, compared to European or North American markets. I believe robot taxis will revolutionise UK urban transportation in the second half of the next decade.”
John continued to explain: “Improvements in the cost and range of battery technology, coupled with growing concern over the emission of both carbon dioxide and nitrogen oxides from diesel engines, means that almost the whole automotive industry believes that the mass adoption of electric cars will happen during the next decade.”
Does a fall in foot-to-pedal driving mean that we can expect discrepancies within the automotive marketplace? Well, though nothing is for certain, UK market researchers have suggested that manufacturers will instead look to diversify their services, adding digital component manufacture and software development to their repertoire instead of relying solely on their vehicle production.
Leech comments on this, concluding that: “Carmakers plan to sell a myriad of new digital services to vehicle users. Today carmakers already make substantial profits from the sale of consumer finance and annual vehicle insurance but this will grow in the future as innovative services such as remote vehicle monitoring and the integration of the car as a focal point in people’s ever more connected lifestyles are demanded by consumers.
“For the auto industry, this implies that pure product profitability is outdated. Carmakers’ success will not be evaluated solely on the quantity of vehicles sold, but on the customer value over the whole lifecycle – especially when the digital ecosystem will be ready for the market.
“So, OEMs need to rethink. More than three out of four executives believe that one connected car can generate higher revenues over the entire lifecycle than 10 non-connected cars.”