Future Of Mobility Post COVID

Suresh KV Nov 08, 2021

The mobility landscape has been evolving rapidly in India. Trends like electrification, connected cars, data monetization, and mobility as a service are some of the drivers that can be attributed to this evolution. These changes in the Indian mobility industry come in the backdrop of rapid urbanization and the industry’s focus on upgraded and cleaner mobility. The outbreak of the COVID 19 pandemic has impacted industries across the globe and has also created a severe dent in the economy. The pandemic has also changed the course of lives of individuals and industries to an extent that is still not fully understood today. But one thing is certain that India has now arrived into a digital/technological age. An era, where technology and the connectedness of things are already omnipresent and is touching every single aspect of our lives.

In the past, the Indian automotive industry was playing catch up with the matured markets with regard to technology advancements. In the new market environment in India ‘Technology Leapfrogging’ looks closer than ever before. A change in consumer behavior is accelerating this shift – today consumers are choosing brands that help them make a more sustainable, safer, and healthier lifestyle choice. A market that was highly value-driven is now taking health and well-being seriously and is ready to invest in it if needed. OEMs have picked up on this impulse and following the tighter regulations being rolled out in the country and are launching mobility solutions to cater to this shifting mobility landscape. With social distancing being the new normal and personal hygiene taking a center stage than ever before, the demand for personal mobility solutions is likely to experience an upward surge. Consumers are expected to prefer private vehicles purchases in the short and medium terms. To top it all, the government is focused on bringing in new guidelines and schemes to aid the introduction of new technologies at affordable costs to aid the Indian consumer.

India has been evolving every single day and has been achieving milestones across several verticals and electric mobility is one amongst them. Electric vehicle segment has been one of the most talked about in the industry which has gained significant traction and is now catching pace gradually in India and across the globe. With pressing concerns of environmental issues surfacing, many companies in the sector are stepping forward to curb the issue and eradicate fuel dependency by adopting eco-friendly technologies. Both the central government and many state governments are bullish on the transition from petrol-engine vehicles to emission-free products and there’s plenty on offer in the form of EV buyer subsidies. The FAME I and II schemes announced by the government are a few of the best incentive schemes that we have globally for electric mobility. Also, the launch of the PLI scheme has created a push towards clean technology and energy.

It is imperative to understand that consumer behavior has been evolving rapidly with more millennials entering the workforce, further creating an increase in disposable income. This has given rise to a reduction in the ownership period of cars thus contributing towards a substantial increase in the used car market. Going by a report published a few months back emphasized that the Indian used car market generated $18.3 billion in revenue in 2020, and it is expected to grow at a CAGR of 14.8% during the forecast period (2021–2030).

Another reason for the steady surge in demand for pre-owned cars is the consumer focus on quality vehicles that are available at affordable prices followed by an increasing preference for imported cars. With digitalization being setting a strong foothold in India and the rapid evolution of the online retail segment has expanded the horizon for the used car segment it has become more convenient for buyers to search for pricing and vehicle details. In addition, key players in the market are continuously investing to further expand and have an online retailing and classifieds presence, or offline presence.