>Business >Electricity-based and self-driving vehicles – Future Perspectives Pt2

Electricity-based and self-driving vehicles – Future Perspectives Pt2

For the market to attain the turning point, cars and vehicles will be required to demonstrate L4 automation, or autonomous driving with no human intervention under specific conditions. Several conventional producers are undertaking expansion of their advanced driver assistance frameworks and intend to initiate L4 functionalities in 4 years from now. 

AVs will ultimately reach the market as privatized vehicles, primarily within the luxury and premium markets. Providing a no-interaction ride, with the priceless possibility of additional time afforded to travellers for working, studying, sleeping, or just chilling, these cars could make the increased pricing justifiable to customers looking for the ultimate convenience.  

By the end of this decade, in some areas, it is forecasted that 4% to 9% of new vehicles purchased will be outfitted with L4 automation, a major portion of which will be privatized vehicles providing highway assist. 

Price, of course, will be a significant obstacle to be surpassed for electric vehicles. However, they won’t provide advantages only to individual customers who don’t have a lot of time. Robo Taxis which can do away with drivers and the connected expenditure, will serve as a worthwhile supplement to public transport frameworks in cities around the globe. 

Going by Bain Research, autonomous vehicle ride-hailing services could be a viable solution for city-based mobility by the end of this decade. Smart cities and cities that in general, foster innovation, will leverage robo taxi fleets to supplement their current public transport utilities, leveraging autonomous vehicles to traverse seldom visited routes, with the hope of reducing and managing traffic in areas that face severe congestion. 

High-level automated driving kits presently cost in excess of $70,000. But with the passage of time, standardized kits, simplification, streamlining, and mass production will bring down costs, considerably. By the end of the decade, we could witness a whopping 85% price decrease in automated systems, with them slotting in at 10,000$ down from 70,000$ today. 

Currently Waymo is providing application-based ride sharing in Phoenix, and Lyft and Uber are gaining a strategic advantage through a treasure trove of customer information and brand recall, technology organizations are in pole position to win over this space. However, OEMs don’t need to reinvent things drastically. In place of such reinvention, they can form strategic partnership with tech organizations and cities, to gain access to these emergent technologies and setup a line of communication with end-users. 

How can OEMs cope up? 

OEMs have made it to an important juncture, amplified by the pandemic situation. Leaders realize they have minimal or no financial padding, and decisions made in the time that lies ahead will likely decide the future outcomes of their organizations. They are also aware that very little companies presently have the backing to make massive investments in the treasure trove of opportunities developed by the progression amongst both EVs and AVs, and tough decisions have to be made.  

Even organizations with the capability and the scale to make inroads into the two segments will be required to focus on spheres of brand differentiation. If they’re to outpace their considerable technological competition. What lies ahead is the need for strategic trade-offs. 

To not lose a footing in the market and avoid penalization with regards to regulations, OEMs can initiate a few urgent actions with regards to EV investing. 

  • Minimize complexity and costs to handle increased costs of EVs – Market leaders will whittle down their product lineups and move investing to functionalities that make the brand stand out in the eyes of customers and prospects, and the market overall. 
  • Win over new consumer segments – OEMs can connect with customers via innovation in their business models and frameworks, like leveraging subscription offerings, for example. They can leverage other programs, such as flexible leases, to make up for increased electric vehicle costs and capture new audiences. 
  • Create partnerships – Robust partnerships can assist producers in planning for next-gen batteries, and secure SMEs in cell tech and manufacturing. 

On the side, market leaders in the OEM segment can get prepared to capture opportunities and handle threats in an automated future. 

  • Define positions in the new mobility value chain – Leaders will assess present capacities and identify where they can generate tangible value; if its privatized highway cars, urban ride-hailing services, or some conjunction of automated vehicle and electric vehicle technology. 
  • Set up points of contact to the end user – With technological organizations retaining domination with regards to mobility services, leading producers will initiate partnerships and collaborations to obtain access, shape the client experience and get to users. 
  • Get access to L4 technologies – Based on their uses, OEMs will collaborate via partnerships in the early goings on to craft the technologies and reduce costs. 

Mobility is evolving rapidly, and we’re set for a turning point – a paradigm shift there’s no looking back from, anytime soon. What’s shocking is that all of this progress is happing smackdown in the middle of the COVID-19 pandemic. While timelines are not that broad, OEMs can still make it in the race, by developing strong strategies and executing them in a timely manner. 

Add Comment