An Automotive Minute [S2|E42] How COVID-19 is Changing the Auto Industry with Mark Boyadjis
As the automotive industry looks to recover lost revenues from the global COVID-19 pandemic, the growing demand for high-tech, shared mobility solutions has become a focal point. Within major markets, S&P Global forecasts a steady 18 percent compound annual growth rate on vehicle sales for mobility services use in the next 10 years, adding 2.6 million units by 2030.
In contrast, vehicle sales for personal-use will see a net loss of 1 million units in the same timeframe. To take advantage of the shifting consumer demand, many automakers are partnering with ride-hailing companies to design and optimize a new type of vehicle for their services.
Recently, Chinese carmaker, BYD launched the D1 to exclusively support DiDi’s ride-hailing operations in China, earning revenues based on vehicle usage, rather than unit sales. And BYD is not alone. Several other OEMs have launched similar endeavors, proving that the pandemic has forced OEMs to think differently about how vehicles are designed AND how revenues are earned.
I’m Mark Boyadjis, with an S&P Global Minute.
Recommended for you
- 12V batteries part III: Learnings from an established sustainable supply chain
- Consumers clamor for connected content
- Fuel For Thought [S4|E11]: The future of EVs and alternative propulsion in the commercial market
- Electric vehicles: Do consumers even want them?
- Letting go: Consumer sentiments towards automated driving
- EV charging trends
- Paris Motor show- A recap
- Autology Podcast: Battery raw materials: How they will reshape global battery supply chain