The electric vehicle is generally an option for cities and the wealthy, according to a new report, although threats to the car industry remain.
Car use continues to grow globally despite climate threats, according to a new report from consulting firm Arthur D. Little. Based on a sample of 16,000 drivers from 25 countries, the study concludes that many users are reluctant to give up their current cars.
This is especially true of groups of low income and those who live in rural areas, where public transportation is limited. On the contrary, three quarters (76%) of the inhabitants of European cities with more than 5 million inhabitants are willing to give up the car. This percentage is 62% in European cities with less than 250,000 inhabitants.
Car attachment depending on region and age
Drivers from different countries were asked to say how important it would be for them to have their own vehicle in 10 years, compared to today. Respondents from Spain, France, Italy, Belgium, Norway and Singaporer offered comparatively lower scores, suggesting that it would be less important to them.
On the other hand, drivers from countries like Mexico, Saudi Arabia and Türkiye They predicted that owning a car would be relatively more important to them in a few decades. The study also grouped responses according to age.
Compared to those over 45, drivers younger than 45 seemed more attached to their cars when predicting their future habits. In Europe, North America and Chinamore young drivers than older drivers predicted that their car would be important to them in 10 years.
When asked what would convince them to give up your personal carrespondents cited new, lower-cost mobility services (50%) and the high availability of such services (38%). Among these alternative mobility services are found the public transportprivate transportation and car sharing.
When asked why they chose the new mobility services, respondents mentioned the flexibility (62%), cost (52%) and the environment (44%) as the top three reasons.
The switch to electric vehicles
New registrations of battery electric vehicles and plug-in hybrids continue to grow around the world, until reaching a maximum of 14 million in 2023according to the International Energy Agency. Arthur D. Little’s report notes, however, that there are still various obstacles for the expansion of the electric vehicle market.
One of the main obstacles is the pricesince in many markets the initial prices of electric vehicles are still higher than those of traditional cars. The reduction of subsidies public in several countries.
Fear of the new
Furthermore, the study states that the most important obstacle to the adoption of EVs is the fear of the newas buyers may have “prejudices and preconceived ideas about them.” Other concerns are irregularity of charging infrastructurerecharge time and battery life.
Nearly half (49%) of those not choosing a BEV as their next vehicle point to battery life as the reason. For those who already have a BEV, Tuesday’s report showed that there are high levels of fidelitywith 76% expecting to replace their vehicle with another BEV.
Geopolitical rivalries threaten profitability
The report also highlighted how competition between major manufacturers of automobiles is harming operations on a global scale. “Companies must navigate growing geopolitical rivalries between the US, Europe and China, which impact operations, especially global supply chains,” said Arthur D. Little.
Among the companies currently facing these challenges are Stellantis and Volkswagen, which have recently issued profit warnings. An underlying threat is weak demand in Chinaas European manufacturers lose ground to their Asian competitors.
Chinese manufacturers are able to develop electric vehicles sophisticated quickly and cheaply, which attracts consumers. This imbalance now threatens a trade war between the two blocs after the European Commission launched an investigation last year into Beijing’s market practices.
According to the Commission, the success of Chinese manufacturers It is due to unfair public subsidies that allow electric vehicle companies to keep their prices artificially low. Beijing has counterattacked, claiming that its industry has flourished naturally.