The Future of Mobility is Here!
"In order to have clean air in cities, you have to go electric." – Elon Musk (Tesla and SpaceX)
The above quote by Elon Musk, one of the world's most progressive entrepreneurs, is powerful and resonant in equal measure, reflecting the ever-rising global urgency of switching to more environmentally friendly means of transport. The innovative and widespread utilization of Electric Vehicles (EVs) is one of the most significant markers that have come to define mobility in the twenty-first century. Fueled by electronic batteries instead of fossil fuels such as diesel or petroleum, these vehicles are slowly but surely transforming how mobility is evolving across the globe.
The gradual shift away from the traditional forms of transport
The future of mobility is striving towards offering travel that is environment-friendly, automated, integrated, and personalized on-demand. Today, apart from the regular multiple modes of transport available globally, we are witnessing connected cars, EVs, and autonomous vehicles that are looked at as a harbinger of the ever-elusive solution to reduce greenhouse gas emissions and release traffic situations.
The EV market scenario
In 2021, EV sales surged with growth in all three top auto markets – China, the US, and Europe. Sales increased by 160% in the first half of 2021 from a year earlier to 2.6 million units, representing 26% of new deals in the global automotive market.
According to Mordor Intelligence, the EV market in India was valued at USD 1,434.04 billion in 2021, with sales up 168% in 2021 from the year 2020. While two-wheelers and three-wheelers continue to dominate the Indian EV market, consumers are likely to opt for affordable eco-friendly transportation supported by government incentives. Going forward, the Indian EV market will reach USD 15,397.19 billion by 2027, registering a CAGR of 47.09% during the forecast period (2022 - 2027).
The future is now
The previous year was a milestone year in mobility, with significant accomplishments in the disruptive elements of autonomous, connected, electrification, and sharing (ACES) of mobility. The electric car’s future is predicated upon EVs, Autonomous Cars, and Connected Vehicles.
ACES, an acronym agreed by the Center for Automotive Research for four key technological trends for future mobility – Autonomous, Connected, Electric, and Shared vehicles, is relevant for the technological shift impacting the automotive industry. It will play a big part in solving global challenges, enabling newer mobility paradigms, and new business models that can alter the way consumers interact with vehicles.
Electric and autonomous cars' growing digital and physical infrastructure can help nations manage various problems while delivering safer, more economical, sustainable, and affordable mobility to everyone.
In the wake of the global Covid-19 pandemic, social distancing has become integral to our lives – one of the main drivers of an estimated 41% rise in consumers' intention to use a personal vehicle. However, there will be a substantial shift towards shared mobility in the years to follow, including increased utilization of automated vehicles and connected ones. A higher emphasis on carpooling is projected to be one of the main trends of a shared mobility model. Another facet of mobility that has been launched to gain prominence in the future is vehicle subscription models. Although still in its nascent stage in India, such flexible subscription plans hold the potential to transform mobility as it facilitates social distancing and offers cost-savings, asset-free lifestyle, and mindfulness towards the climate.
The global mobility space is riding on a wave of transformation. Stay tuned to our series of blogs to know more about what is happening in the automotive and EV space!
Read other Extentia Blog posts here!