The Australian car industry is going through a period of change. Manufacturers are exiting the market while the number of cars sold dropped for the first time in four years. New competitors are entering the market while existing disruptors, like ride-sharing service Uber, are changing the way people view car ownership. This is creating new and exciting opportunities for businesses and consumers alike.
Self-driving vehicles are on the horizon
While there’s been a lot of talk about self-driving vehicles they still feel a bit like science fiction, but it’s only a matter of time. While individuals may not choose to purchase a self-driving vehicle, they’re likely to become the norm in the ride-sharing industry. This will signal a maturing of the ride-sharing market, as people shift from making money in their spare time to purchasing self-driving vehicles as assets that can be utilised full-time.
Vehicles adopt the Netflix model
Rather than purchasing vehicles, consumers will look to subscription models to access cars when they need them. While subscription models similar to share car arrangements like GoGet and Flexicar, have been around for a few years, a new Netflix-style model has entered the market.
Carbar+ is like an online dealership that lets consumers subscribe to specific vehicles for a short period of time. They don’t need to worry about repairs, maintenance, depreciation and a range of other hidden costs associated with car ownership. Instead, people can just pay for the time they actually need and the type of vehicle that suits their activities. Taking the family on a camping holiday, then rent a 4WD for a month or subscribe to a luxury vehicle and have a romantic weekend at the beach. The subscription model offers flexibility without the financial commitment.
The subscription model is also being considered by vehicle manufacturers as a way to give people a choice over the vehicle they want to drive from the manufacturers selected models. This means consumers can drive a new car without having to purchase it. This model has been used in the US for a few years with some success and is expected to change the way people view car ownership.
Electric vehicles will continue to rise
As reported previously, electric vehicles will also continue to increase over the next decade. New models are entering the market each year, with Audi the newest one to add a fully electric car to its brands.
Mercedes-Benz has committed to having each of its brands electrified by 2022 and Ford will join the electric vehicle market with 13 vehicles by 2020. While General Motors, Hyundai, Honda and Toyota will also continue to add to their fleets.
In the face of change, the automotive industry has risen to the challenge. To stay on top of the opportunities, partner with an agency who understands the industry.
