According to a new report, demotorization is generally a phenomenon of the urban and wealthy public, although threats still loom over the auto industry.
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According to a new report from consulting firm Arthur D. Little, car use continues to grow globally despite climate threats.
Based on a sample of 16,000 drivers in 25 countries, the study concludes that many users are reluctant to give up their cars.
This is particularly true for low-income groups and residents of rural areaswhere public transport is limited.
Conversely, three quarters (76 %) of the residents of European cities with more than 5 million inhabitants are ready to give up their car.
This proportion is 62 % in European cities with less than 250,000 inhabitants.
Attachment to the car depending on region and age
Drivers from different countries were asked to predict how important it would be to have their own vehicle in 10 years – compared to today.
The people interviewed in Spain, France, Italy, Belgium, Norway and Singapore had comparatively lower scores, suggesting that it would be less important to them.
On the other hand, drivers from countries like Mexico, Saudi Arabia and Turkey predicted that it would be relatively more important for them to own a car in about ten years.
The study also grouped responses based on age.
Compared to people aged over 45, drivers under 45 seem more attached to their car when considering their future habits.
In Europe, North America and China, there are more young people than older drivers to predict that their car will be important to them in ten years.
When asked what would persuade them to give up their personal car, respondents cite new lower-cost mobility services (50 %) et the wide availability of these services (38 %).
These alternative mobility services include public transport, private carpooling and car sharing.
When asked why they choose new mobility services, respondents cite the flexibility (62%), cost (52%) and environment (44%) as their top three reasons.
The transition to electric vehicles
According to the International Energy Agency, new registrations of electric vehicles battery and plug-in hybrid electric vehicles continue to increase worldwide, reaching a record figure of 14 million in 2023.
ADVERTISEMENTArthur D. Little’s report, however, notes that there are still a number of obstacles to the expansion of the electric vehicle market.
One of the main stumbling blocks is the priceas the initial prices of electric vehicles remain higher than those of traditional cars in many markets. This situation is not helped by the reduction of government subsidies in several countries.
Furthermore, the study claims that the most significant barrier to EV adoption is the “fear of newness”because buyers may have “biases and preconceived ideas about them.”
Other concerns include uneven charging infrastructure, charging time, and concerns about battery life.
ADVERTISEMENTNearly half (49%) of those who do not choose an all-electric vehicle (BEV) as their next vehicle cite battery life as the reason.
For those who already own an EV, Tuesday’s report showed thatthey are very loyalwith 76% planning to replace their vehicle with another.
Geopolitical rivalries threaten profitability
The report also highlights that competition among major automakers is hurting business globally.
“Companies must face growing geopolitical rivalries between the United States, Europe and Chinawhich affect operations, particularly global supply chains,” said Arthur D. Little.
ADVERTISEMENTCompanies currently facing these challenges include Stellantis and Volkswagenboth of which have recently issued profit warnings.
One of the underlying threats is weak demand in China, with European manufacturers losing ground to their Asian competitors.
Chinese automakers are notably capable of developing sophisticated EVs quickly and at lower cost, which allows them to appeal to consumers.
This imbalance now threatens to trigger a trade war between the two blocs after the European Commission launched an investigation into Beijing’s business practices last year.
ADVERTISEMENTAccording to the Commission, the success of Chinese manufacturers is due to unfair government subsidies that allow EV companies to keep their prices artificially low.
Beijing responded claiming that his industry had prospered naturally.
