Realizing the Future of mobility: Electric, Autonomous, and Shared Vehicle
A couple of months ago, we envisaged the future of mobility in one of our articles. A world of autonomous and electric vehicles, where private ownership is being replaced by mobility-as-a-service (MaaS), is gaining momentum.
From faster, more affordable electric vehicles to an autonomous shopping cart-mobility was on everyone’s mind at CES 2020. It was not only about the vehicles but the CASE (Connectivity, Autonomy, Shared mobility, Electrification) technology that is shaping this on-demand mobility industry.
What global consumers feel about CASE? How does the auto industry transform itself to adopt CASE technologies for integrating them into vehicles? Are global consumers willing to pay a premium to accomplish automaker’s investments using innovative technology based on CASE models? All these subjects were discussed at the CES 2020 show. Here are some brief details:
Paying for CASE:
As consumers have become used to stylish new technology that’s integrated into their new vehicles at no extra cost, therefore, consumers think they should not charge a premium for high-value gadgetry. Research from Deloitte released at the show 2020 backs this up. According to the research, 70% of consumers in Japan and Germany would not like to add a $500 to the retail price to get Tesla-style autonomous vehicle functionality.
In the US, 75% of customers would not show willingness to pay an extra $500 for additional features, regardless of its innovation. Similarly in Korea, the stats showed 60% people refusing to pay extra for connectivity features.
These stats indicate that transformation of vehicles to adopt CASE technology is expensive for end customers. But demand remains high because it is precisely these features that can still differentiate brands and models. Now, the question arises: What is the solution then as high development costs are one of the key reasons automakers are showing lower financial results.
According to Deloitte, carmakers acquired technology startups and set up joint ventures to tackle the CASE challenge. Yet even these essential steps may not be sufficient. So what else can automakers do?
Innovative Processes for CASE Challenge Accomplishment:
At CES 2020, the buzz was not only about connectivity, mobility, autonomy, and electrification, but CASE manufacturing processes and technology were also points of discussion.
One way to lower costs and increase efficiency is possible by making light weight vehicles using less heavy components, which is possible using lighter materials and innovative AI. The industry’s primary focus is to use less innovative lightweight material to lower production cost, increase profitability and bring efficiency.
Deloitte agrees from a General Motors Source who claims that light weighting is essential to meet fuel-economy regulations and achieve longer ranges for our electric vehicles. To fulfill lightweight criteria, automakers need to use advanced design tools using IoT, Artificial intelligence, and machine learning to explore innovative designs and material.
Another way that car makers are adopting is additive manufacturing which is mainstream these days on the production floor and also ready to scale.
The Bottom Line:
The CASE (Connectivity, Autonomy, Shared mobility, Electrification) was on full display at CES. The innovation, ideas, and prototypes are available. Now, the need is to collectively leverage the power of design-driven light weighting and cost-effective additive manufacturing to bring these ideas into reality for consumers at an affordable price they can embrace. Challenges may occur to accomplish these objectives but the concept is very much realistic and achievable. Moreover, it can make lives easier than before.
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