The global car is changing—and this column has been talking about it. But whether we are weighing the pros and cons of electric cars (“Re-dreaming cars”, August 3, 2017), and self-driving autonomous vehicles, (The car utopia”, Jan 9, 2018) or wondering when flying cars (“Driving to never-never land!”, Jan 30, 2018) would be a close-reality; what we are really talking about is the future of mobility. And in talking about mobility, the world is concerned with not only what the future car should look like, or how driving and traveling experience can be improved, but also the construct under which we view cars—the construct of ownership.
In many cultures, buying a car is considered a rite of passage—it’s a sign that you are becoming an adult. For some, owning a car is a novelty, or a fad, like the latest iPhone—you need to get the latest upgrade, or the new design. For others, it’s a luxury they spent fortunes saving up on. For others yet, it is the fastest and cheapest way to travel. Especially in burgeoning, fast-paced cities central to emerging economies or developing countries where public, mass-transit is not either available or accessible. It is most often an asset that pays back through its life.
But the on-demand economy has been changing the landscape a little bit. Ride sharing apps like Uber, Lyft and Careem are putting unused cars to use, putting unemployed people on the drivers’ seat and meeting the demand-supply gap that exists in transportation. There are car clubs like ZipCar that give access to cars without having to buy one. This doesn’t discourage car buying as much as it opens new avenues for travelers.
The other aspect is the environment. Cars are heavy polluters and though the shift to electric cars may come over the next decade or so; rising population and more cars on the roads are congesting emerging cities. This is why it is now really expensive to buy cars in Singapore and China as both countries are discouraging car buying by imposing taxes.
Car ownership may also see a downward shift for another reason: innovation. A Bloomberg report tells that more people are now leasing cars (in U.S, 80 percent of electric vehicles are leased), rather than buying them. There are already too many choices with faster upgrades between models.
Meanwhile, the evolution from combustion engine fitted cars to hybrids to electric cars to autonomous cars implies that technology is not static; it’s dynamic. Though only one percent of the global market is now using electric vehicles (and autonomous cars are still in the concept stage), people are cautious in making a choice to buy just yet. Something better— “in value and capabilities”—will be out there soon, they are sure.
And so, global thinkers and innovators have started asking the question: do we need to own a car? If the future car will be a battery powered vehicle that is smart, autonomous, and connected to the infrastructure, would it even make sense to own it? Perhaps it could become a mobility service that is utilitarian. It would be a transportation vehicle in the truest sense of the word, transporting people from one place to another, without staying in the garage unused all day. This would tackle the problem of congestion on roads, and provide transportation to more people who need it and is also affordable.
However, one would wonder: what about the car enthusiast? Today, car making giants are designing fancier cars to whet the appetite of a car aficionado, for whom it is not about mobility. If cars indeed become transportation services, would car making become a dying art; and car buying, a dying passion? Something to think about.
Comments
Comments are closed.