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The future of the car industry
- Ride-hailing apps are expected to continue pressuring car ownership levels and shifting the automotive industry focus from horsepower to processing power.
- Old industries face unprecedented disruption, with survival predicted to depend on adaptation to ever-changing technology.
- The younger generation is projected to view freedom as riding rather than driving, fundamentally altering the rite of passage of buying a first car.
- The traditional need for personal vehicle ownership is expected to diminish among young people due to enabling technologies.
- Automakers anticipate future disruption if passenger experiences are built around affordable, enjoyable point-to-point transport without requiring ownership.
- Local cabbies are predicted to be courted by platforms like Ola to work on their ecosystems rather than remaining excluded.
- Lyft expects to have covered half the world's population in approximately four years since its expansion began.
- Ola has a stated mission to build mobility for a billion Indians.
- By 2017, 20% of India's 1.25 billion population is projected to own a smartphone, creating significant market potential.
- Ford anticipates a future where sales are no longer driven solely by the latest model, requiring a fundamental rethinking of product development focused on customer experience.
- Ford plans to reduce reliance on the traditional business model of big one-off purchases through pilot schemes including GoDrive, shuttle buses, and electric bikes.
- The company is analyzing societal trends and technologies to forecast global conditions 5, 10, and 15 years from now.
- General Motors invested half a billion dollars in 2016 in a four-year-old startup to develop a fleet of shared driverless cars over four years.
- Software is expected to become an increasingly critical factor in mobility, with the commercial benefits of ride-sharing becoming more apparent.
- Automakers must determine if the general public will prefer owning driverless cars or the flexibility of ride-hailing services.
- Ford identifies a huge revenue opportunity between $5.5 trillion and $6 trillion, a share where the auto industry currently receives zero percent.