> Click here to read our CORONA VIRUS (COVID19) Policy       > Click here to read our COVID-19: Essential Customer Updates and Information
Back to News

The Future of Automotive is 'EASCY': 5 letters that could shape our future

The car of the future is electrified, autonomous, shared, connected and yearly updated – or “eascy” for short.

That’s the view of Autofacts, a team of PwC industry experts who provide automotive insights and forecasts to clients around the world.

According to the PwC report, entitled ‘Five trends transforming the Automotive Industry’, eascy means each vehicle will:

• emit less exhaust fumes and noise into the environment because it is electric

• take up less personal time and space because it moves autonomously

• be more accessible because users will not need a driving licence to use it

• be more affordable because it will no longer have to be bought outright but can instead be paid for in small amounts on a ‘per use’ basis, or journeys can be made via car sharing Apps

• be connected to the transport infrastructure (such as traffic lights) and other cars (to give real time congestion), as well as in-car connectivity to use the internet and access multimedia while car sharing or being driven autonomously

• be updated annually in order to integrate the latest hardware and software developments, as opposed to having a traditional service

The report also focuses on the cultural shift where society is moving towards a model of ‘using’ instead of ‘owning’ vehicles.

According to PwC there are two different manifestations of shared mobility: car-sharing and ride-hailing.

Car sharing means that the vehicles can only be collected from pre-defined stations. Ride-hailing, by contrast, is about sharing a journey where the car comes to you, with online car sharing agencies looking to create driving communities, online platforms that act as brokers for drivers offering journeys in private cars, and taxi companies that offer their services via an app.

For the motor manufacturers, it could have a profound effect on their survival unless they shift their business models.

In fact, the PwC Autofacts team argues that the transition to the “eascy” world will be far from easy for the automotive industry. 

Traditional manufacturers and suppliers will be extremely vulnerable in the years ahead. They will have to battle against falling margins while at the same time making far greater investments in electro-mobility and new, customer-oriented innovations. 

The combustion engine, which was for decades at the heart of the German automobile industry in particular, will become obsolete. 

At the same time, more and more new competitors will force their way into the market, which will make life difficult for the old timers. 

All these trends are likely to come to a head between 2020 and 2025 – which means that these are the decisive years for manufacturers and their suppliers.

After all, it’s not going to be just about cars – but about mobility.

The report explains that manufacturers and suppliers who continue to focus solely on the production and sale of automobiles will find it especially hard to manage the restructuring of the automotive sector. 

In the age of “eascy” it is no longer just the product but the mobility services that will be at the heart of the business model. This is the only way companies can continue to meet  the changing expectations of their customers, and it will be essential to link the “hardware” (i.e. the vehicle) with the “software” (i.e. the services).

Manufacturers, in particular, will have to make the fundamental decision about whether they wish to continue as a fleet or service provider. 

Entering the field of mobility services could potentially open up access to new sources of income for manufacturers; but at the same time there will be increased pressure on the core business of the production and sale of cars.

“This PwC report is a fascinating and very insightful look into the not-too-distant future,” said Andy Reed, operations director of Interactive Fleet Management, the Grosvenor Group’s specialist fleet management business.

“With cars receiving hardware and software updates, this will have a fundamental impact on the dealership aftersales market and how fleet management companies, such as ours, manage vehicle ‘maintenance’ - if that’s what it will continue to be referred as.

“We are also looking at a completely different business model for companies with mobile workforces, which has far reaching implications for the role of the traditional fleet manager, and the contract hire and fleet management sector as a whole.

“The upshot is, we all know that the fleet landscape is going to completely change and, as we move into 2020, the next decade is going to be a very interesting time for everyone involved in fleet.”

Source: ‘Five trends transforming the Automotive Industry’ by PwC For more information visit www.pwc.com/auto

GET IN TOUCH
Call us today on 01536 536 536

Back to News

GET IN TOUCH
Call us today on 01536 536 536

Services

Contract Hire

Easi-Fleet Management

Daily Rental

Short Term Rental

Accident Management

Fuel Cards

Light Commercial Vehicle Contract Hire

Driver Care – Risk Management

Public Sector

Fleet Consultancy

Grey Fleet Management

Online Reporting

Contract Hire

Easi-Fleet Management

Daily Rental

Short Term Rental

Accident Management

Fuel Cards

Light Commercial Vehicle Contract Hire

Driver Care – Risk Management

Public Sector

Fleet Consultancy

Grey Fleet Management

Online Reporting

News & Media

New rules on MOT testing for light vehicles

Due to the unfolding COVID-19 situation, cars and vans and motorcycles due their MOT from 30 March 2020 will have their MOT extended by 6 months. This will continue until confirmed...

More

Brexit and the cost of vehicle repairs

Vehicle maintenance costs can be expensive, volatile and challenging to control at the best of times. But according to...

More

Grosvenor's panel of experts is available for advice and support to companies with car and light commercial vehicle fleets. Even if you aren’t an existing customer, we’d still be happy to offer advice if there’s something you’d like to discuss... https://t.co/D943hBUnul https://t.co/TGYFdLb4ld