Shake-up for car industry

So says a recent report which cites several trends which could have far-reaching consequences for the industry. One possibility is that commuters will move en-masse to car-sharing or renting vehicles. In many of the globe’s most advanced cities, this is already occurring. Such a move would significantly alter the status quo in South Africa where cars are generally paid off over a period of time.

Self-driving and zero-emission cars are also no longer the stuff of dreams. Self-driving cars are already being developed by several car makers and zero-emission vehicles are slowly gaining traction given the high cost and battery life issues associated with such cars.

In South Africa, zero-emission cars will, in all probability, not be readily absorbed by the market given the long distances typically travelled in the country and the issues surrounding an unstable power supply.

According to the report, another change the vehicle industry faces is the upcoming generation ‘Y’ is not interested in owning things. “Being part of the connected world is the most substantial part of their material ambitions and what is important this year may not be important the next one – which means a constant shift in brand loyalties and values.”

3D printing is another development which may change the face of the car industry. While still early days, 3D printing could provide the local industry with a solution to the conundrum of expensive imported parts.

Some of these developments are a long way off in South Africa, while other countries such as Britain are already trying to come to grips with them.

Notes Park Village Auctions’ (PVA) Clive Lazarus: “No doubt there will come a time when South Africa will have to come to tackle these challenges too. Suffice to say it will be interesting to see how things pan out.”