|Event Report: Future Trends within the Automotive Industry (Europe and Asia)|
The European Automotive Council of the European Chamber of Commerce in Hong Kong organized a seminar on 14th of December to discuss the general global trends in the automotive industry with a focus on Asia and Europe. The current specific trends of the China & Hong Kong Automotive industry development were explored and highlighted the new technologies coming up in the form of Digitalization, Connectivity, Sustainability Driving, and Infrastructure.
Alexander Mastrovito (Scania)
Mr. Mastrovito told the audience how sustainable transport is the only way forward, as the transportation of goods and people determine the quality of life. Whereas in the past, people lived and worked in the same city, people nowadays are involved in activities in multiple cities. This results in an immense demand for transportation. According to him, the question we have to ask ourselves is whether we are still contributing to increasing our quality of life?
Mr. Mastrovito also discussed the four megatrends the transportation currently faces
There are six disrupters in commercial vehicle industry.
Ignatius Tong (Roland Berger)
Mr. Tong told the audience that when it comes down to autonomous drive, 58% of customers in Germany and US are interested in autonomous driving; China the same number is 96% of customers. However, the question remains that what do the governments allow in terms of regulation? Regulation requires pedestrian to be completely protected. In practice in China, applying regulations requires at least 5 years of trial in Europe after which the regulations might be applied to the Chinese market. In addition, loss of jobs caused by autonomous driving in for example transportation services is not desired.
A Neighborhood Electric Vehicle (NEV) is a vehicle that are built to have a top speed of 40 km/h, and have a maximum loaded weight of 1,400 kg. In China, the NEB sales penetration is less than 1% of the total sales in China, and is driven by a pull from the government, and push factors from barrier prices also set by a governmental policy. In China, there is tax exemption for buying an NEV in the form of subsidized license plate for free.
When discussing about digitalization, Mr. Tong wanted to remind the audience that 97% of people use the Internet extensively before buying a car for finding a suitable vehicle. Thus, possibility to buy car online has tremendous impact on original equipment manufacturers. At the moment, there are five major e-commerce business models are available and the regulation in Europe fails to follow the change, meaning that outdated regulations still apply in digitalization of car industry.