SHANGHAI, April 19, 2019 (BSS/AFP) – Global automakers are positioning for
a brave new world of on-demand transport that will require a car of the
future — hyper-connected, autonomous, and shared — and China may become the
concept’s laboratory.
With ride-hailing services booming and car-sharing not far behind, the
need for vehicles tailored to these and other evolving mobility solutions is
one of the hottest topics among global automakers gathered for this week’s
Shanghai Auto Show.
Nearly all agree that there is no better proving ground than China: its
gigantic cities are desperate for answers to gridlock and its population is
noted for its ready embrace of high-tech new services.
To take advantage of this, manufacturers are competing not only to sell
conventional and electric vehicles in the world’s biggest auto market, but
also to develop new technologies and even specific interiors designed for the
on-demand world.
“We cannot just develop electric cars. They will have to be smart,
interconnected and of course shared,” Zhao Guoqing, vice president of Chinese
auto giant Great Wall Motors, said on the auto show’s sidelines.
Discussion of China and ride-hailing inevitably involves Didi Chuxing, the
country’s omnipresent answer to Uber.
The eagerness of Chinese travellers to hail rides with a smartphone click
has unleashed a colossal market: on-demand transport reached $28 billion in
turnover in China last year, or about half of global volume, and is expected
to double by 2022, according to data firm Statista.
Didi accounts for about 90 percent of the Chinese market.
– ‘Enormous potential’ –
The on-demand potential is bringing automakers and service providers
together.
Last year, Didi unveiled an alliance of Chinese and foreign manufacturers
including Renault, Toyota and Volkswagen, dedicated to exploring ways
forward.
And in February, Chinese technology giants Alibaba and Tencent joined
hands with several manufacturers to develop a future platform for on-demand
transport.
“We can no longer be a conventional manufacturer, we must offer mobility
solutions, connectivity,” Stephan Wollenstein, director of Volkswagen China,
told reporters.
Although a relative newcomer to China’s automotive market, French brand
Renault is plunging ahead: its local joint venture with Chinese manufacturer
Brilliance Auto delivered 600 personal minivans to Didi in February.
“Didi wants to develop such vehicles with many carmakers, which are more
adapted to (Didi’s) business, redesigned around the passenger,” said Michael
Dong, vice president of Renault-Brilliance-Jinbei.
For one thing, most passenger cars today are designed to squeeze in a
family, and thus feature limited space in the back because that’s where the
kids normally sit, said Lawrence Petizon, an analyst with AlixPartners.
But for ride-hailing or car-sharing, more space is needed in the back to
accommodate grown-up passengers.
“The family car is not the right answer,” he said.
Didi drivers typically supply their own vehicles, but Chinese authorities
are encouraging service firms to build their own fleets, partly to spur the
industry and push forward the futuristic transport concept.
Some manufacturers are even dipping their toes into ride-hailing, with
Germany’s BMW offering a high-end service in the southwestern Chinese city of
Chengdu, and Volkswagen and Mercedes-Benz doing so in Shanghai.
“Admittedly, the volumes ordered are still insufficient for mass
production but the potential is enormous,” says Dong.
– Robot-taxis –
The idea is not confined to China.
Daimler and BMW announced in February they would jointly invest “more than
one billion euros” to deepen cooperation between their Car2Go and DriveNow
services in Europe, in which cars are available for short-term point-to-point
use.
One thing that seems to certain to eventually change is how cars are
bought and sold.
“Car manufacturers will no longer provide customers with cars via a one-
time sale, but rather with a brand that connects them to the users on a daily
basis through the mobility services they offer,” said a recent report by
Eurogroup Consulting.
This automotive evolution is expected to accelerate development of
autonomous vehicles, which are already viewed as the future of overall car
transport, but seem especially suited for urban car-sharing services.
Valeo, the French manufacturer of ultrasonic sensors, cameras, and
navigational technology, said it received orders totalling one billion euros
last year related to the development of “robot-taxis”.
Francois Marion, president of Valeo China, said the global advent of
driverless cars is just around the bend.
“They will hit the road in carefully charted urban environments, with
dedicated lanes on the streets, connected infrastructures guiding them, and
programmed itineraries,” he said of the futuristic vision.
“And the companies operating them will always be able to intervene if
anything happens to one of the vehicles.”
Valeo also is working with Meituan, China’s leader in meal deliveries, to
develop a robotic vehicle.