An automotive executive expressed warned over the weekend that transport network vehicle systems will soon reduce sales as ride sharing is fast becoming a preferred option.
Hyundai Asia Resources Inc. president and CEO Ma. Fe Perez-Agudo noted that consumers’ preference had been changing around the world because of the car sharing business.
“In the US, those holding car licenses dropped from 76 percent to 71 percent in the last five years. There are reports that in Northern America and Germany, car sharing increased dramatically by 30 percent,” she said.
The growing number of millennials is crucial for the growth and development of the car industry. The youth is generally driving the shift toward TNVS. The millennial population in the Philippines alone is expected to hit 36 million by 2020. Asian millennials as a whole are expected to reach 285 million.
“This is what they want. And this is a big market for us. Automotive players will be challenged by this. And this will lead to shifting market positions in the evolving market utility, the industries,” Agudo said.
The situation would then call for further consolidation of industry players, she added.
Agudo, however, noted that the Philippines could be late in catching up with technology and the trend. She said Hyundai, thus, would try to sustain its current double-digit sales growth.
Another big game changer that will influence consumer preference and the automotive industry’s performance is the advance driving assistance service.
The eventual entry of the ADAS into the Philippine market is expected to cause a dent of 10 percent to 15 percent on automotive sales, said Agudo.
Technology companies are coming with their share of futuristic vehicles with features such as the Apple car, Amazon SUV and Google van.