Post on 08-Aug-2015
CHANGING MOBILITY NEEDS
& LIKELY IMPACT ON CAR MAKERS
1. Growth of Shared Economy
Fuel costs
Insurance, MOT, Road tax
Congestion
Parking
The Wider Trends…
2. Increasing Cost of Car Ownership
3. 66% of the world’s population is predicted to live
in urban areas by 2050 [1]
[1] UN, 2014
Each car sharing vehicle has the potential to remove 15personally owned vehicles from the road [3]
[2] RAC Foundation, 2012
Each car owned is used just 4% of the time [2]
[3] The Economist, 2012
In Germany over 1m customers
were registered at the beginning of this year [5]
[4] Transportation Sustainability Research Centre at U.C. Berkeley[5] Federal Ministry of Transport and Digital Infrastructure
As of January 2014, 24 U.S. car sharing programs
claimed 1.2m members [4]
Revenue for global car sharing services will climb, from an estimated $1 billion in 2013, to an
estimated $6.2 billion by 2020, with
over 12 million members worldwide [6]
[6] Navigant Consulting, 2013
[7] The World Bank, 2011 (UK figure for 2010)
4-market study / Two different perspectives...
618456
56 13Passenger Vehicles(per 1000 inhabitants) [7]
Consumers across all markets demand safety, flexibility and a stress free journey as
top priorities
What’s most important to consumers when travelling?
High levels of safety
Flexibility to do what I want, when I want
A stress free journey
Most cost effective way of travelling
Shortest possible journey time
Fits with my lifestyle
High levels of comfort
Pride of car ownership
Low environmental impact
Helps to improve the community I live in i.e. reduces congestion
Makes a positive statement about my lifestyle and status
Having internet access throughout the journey
Top 5 ranked items Top ranked item
Highest priorities…
UK US China India
High levels of safety
Flexibility to do what I want, when I want
A stress free journey
Most cost effective way of travelling
Shortest possible journey time
Fits with my lifestyle
High levels of comfort
Pride of car ownership
Low environmental impact
Helps to improve my communityi.e. reduces congestion
Makes a positive statement about my lifestyle and status
Having internet access throughout the journey
UK US China India
Lowest priorities…
Bottom 5 ranked items Bottom ranked item
Car Sharing firms place eco benefits at the centre of their
communications
What do consumers think of
CAR SHARING?
21%
41%
17%
20%
1% Used a car sharing scheme / car club before
Familiar with it, have considered it but have not used it
Familiar with it but have not considered it
Aware but I am not familiar with it
Unaware
% stating
Total Sample (n=1043)
79%
Globally, a fifth of consumers have considered using car sharing
schemes
25%
37%
22%
15%
1%
% stating
(n=259)
33%
34%
22%
10%0%
12%
45%
10%
33%
0%
15%
47%
13%
24%
1%
(n=264) (n=258) (n=262)
85%88%67%75%Used a car sharing scheme / club
before
Familiar with it, have considered it
but have not used it
Familiar with it but have not
considered it
Aware but I am not familiar with it
Unaware
Stated awareness (& consideration) is subject to clarity of terminology
Many consumers are confused by the concept with
multiple competing platforms and concepts
Varying terminology in the media perpetuates confusion:
Car Sharing
Car pooling
Fleximobility
Self-Drive
Car Club
On-demand rental
What aspects have greatest impact oncar sharing choice?
Vendor Operating Company
Pick up and drop off
Mileage Charge
Hourly Charge 23
15
15
14
9
12
12
13
19
18
17
14
15
4
Pre-Booking Requirement
Membership Fee
Vehicle Brand
20
20
18
13
12
12
5
42
9
8
8
16
9
8
FlexibilityNot practical for my lifestyle
Public Transport Preferrers
The Expense
Barriers to consideration - Functional
Those who cannot see a cost benefit in using a car vs.
public transport
Those needing reassurance their car is available to them at all times
Families, transporting large numbers of people perceive car
sharing as not practical
Those placing low value on private car transport and are happy using public transport
Shared access does not facilitate the emotional connection many
consumers have with their car, or pride of ownership
Barriers to consideration - Emotional
Car ownership equates to freedom
Without full understanding and confidence in the concept/service, consumers seek to
avoid the risk,Particularly prevalent in China
Emotional attachment with car
FreedomVenturing into the Unknown
What do consumers think of OTHER
ALTERNATIVE TRAVEL SOLUTIONS?
Alternative travel solutions
Mobility program calculating the most efficient journey, combining driving and public transport, within a city or region.
Select from a wide range of vehicles, services (car cleaned, pick up and drop off, chauffeur) and accessories e.g. bike rack. Fixed price for a period of time.
Car drivers on certain journeys are matched with others wishing to share the journey and share the cost.Matching is done via virtual notice boards.
A travel planning platform combining all modes of transport, (car hire , public, air and rail), for travelling across borders and regions.
A service that lets you rent out cars from other existing car owners for short periods of time.
A community-driven effort - The provider works out demand for door-to-door rides and then organises group transport .
Mobility Package
Ride sharing/
car poolingMulti-modal
Cross-border/interstate
multi-modal
Peer to Peer car
sharing
Community
Transport scheme
Mobility package
Ride sharing/ Car pooling
Multi modal
Top 5 ranked items:
Cross-border/interstate
multi-modal
Peer to Peer car sharing
Community transport scheme
Car sharing /car club
Owning a car
Most cost effective way of travelling
Flexibility to do what I want
Shortest possible journey time
High levels of safety
A stress free journey
At present, car ownership still perceived best at addressing needs
30% -2% -6% -9% -3% -6% -11% 6%
38% -4% -7% -13% -5% 1% -10% 1%
36% -1% -4% -6% -7% -3% -13% -2%
23% 0% -5% 2% -4% -10% -8% 1%
29% -1% -3% -10% -5% -3% -7% 1%
SUMMARY
SUMMARY: CAR OWNERSHIP IS STRONG, BUT NOT STABLE
Car ownership culture and appeal still very prevalent
However, pain of urban transport , cost of ownership and shifting attitudes among Millennials will see an increasing shift towards car sharing
SUMMARY: ALTERNATIVES HAVE AWARENESS BUT CONFUSE
Four-fifths of consumers are aware of car sharing
Most popular car ownership alternatives:
• Car Sharing
• Community transport scheme
However, significant confusion exists around different sharing / mobility concepts
SUMMARY: KEY MESSAGES NOT ALLIGNED VS. NEEDS
Choice driven by personal agenda – cost, convenience, freedom
Social & Ecological benefits are less important – yet often central in car sharing communications
Messaging needs to position car sharing as a liberating experience,
- focusing on seamless, effortless integration of car sharing in daily life
AUTO IMPLICATIONS
AUTO IMPLICATIONS: THE DEATH OF THE CAR IS NOT IMMINENT
Increased car sharing will not necessarily translate into fewer car sales…..
• Integrating cars in multimodal mobility will likely see cars being used in more types of journey
• In developing countries, car sharing will accelerate access to large parts of the population long before they can afford car ownership
AUTO IMPLICATIONS: CRM HOWEVER, IS UNDER RISK
Car brands may no longer own the customer relationship…..
• Brand touch points limited to the product experience itself – sales / aftersales are handled by car club
• What happens to CRM without the CR?
AUTO IMPLICATIONS: CHANGE IN SALES DYNAMICS
Purchasing power of cars will become increasingly centralised…..
• Car clubs will buy volumes, eroding profit margins
AUTO IMPLICATIONS: SHIFT IN CAR CHOICE DRIVERS
Increasing focus on low running costs by car clubs will change how cars are chosen…
• Low running / repair costs likely to become a critical choice factor in car club fleets
• Will pressure on viability of less frugal drivetrains / bodystyles see the market consolidate?
AUTO IMPLICATIONS: BRAND VALUE WILL REMAIN KEY…
Brand value (and relevant positioning) to remain key to growth despite a period of transition…..
• As car access is eventually commoditised brand value will resurface as a critical differentiator among sharing schemes
Thank You