7 Mega Trends that will shape our Future

Carlos Tavares has shared his vision of the major trends that will transform or change society, and in particular mobility.
7 mega trends have emerged and will influence the evolution of our world

Carlos Tavares shares his vision

Market Divergence

Lower representation of the three big historical markets = Europe + North America + Japan/South Korea = 83% of sales of new vehicles in 2000, 52% in 2017, an estimated 44% in 2025.

Increasing importance of China and emerging markets

Greater China represented 4% of global sales in 2000, but 30% in 2017 and is estimated to represent up to 34% in 2025.

Growth in South Asia remains strong at around 4% per year and above that of Europe (representing 9% of global sales in 2017 and an estimated 11% in 2025).

The growth rate was low and stable in the Middle East & Africa between 2010 and 2017, but should rise to 4% per annum between 2017 and 2025 (representing 5% of global sales in 2017 and an estimated 6% in 2025).

The growth rate was negative in South America between 2010 and 2017, but should rise to 5% per annum between 2017 and 2025 mainly due to the Brazilian economy.

Sharing

People are showing more and more interest in new ways of using cars and are more comfortable with carsharing (partly due to urbanisation and congestion in cities), which is becoming more and more convenient.

10 million new shared vehicles are expected on the road between 2015 and 2030

Energy and the Environment

Today, the energy and ecological transition is a priority for public authorities as they become the new technology specifiers.

From 2021 onwards, European legislation will require that carmakers cut their current average C02 emissions per kilometre by 40%.

To achieve these targets, Groupe PSA needs to capitalise on the development of electric vehicles and plug-in hybrids.

It must leverage its ability to adapt and capacity for innovation to support the transition, transforming obstacle into opportunity.

But this transformation is not just about changing the types of transport we use; it is about changing the way we live. With more expensive vehicles comes the greater risk of wider inequalities. To preserve our freedom of movement, Groupe PSA is also extending is portfolio of mobility services.

Lastly, the mass deployment of electric vehicles means anticipating the challenges associated with raw materials and the production of electricity. The aim is to achieve environmentally but also socially responsible mobility.

Projections = around 25% of vehicles sold in 2030 will be BEV or PHEV (IHS worldwide projection vs <1% in 2016).

Country and city-based regulations are forcing OEMs to comply with emission standards.

However, adequate charging infrastructure and a decrease in battery costs will be required to support this shift.

Connectivity

67 million connected cars by 2030.

Autonomy

Projection 2035 = 5% to 26% of vehicles sold will be shared, autonomous or electric cars (level 4 or 5).

Digitalisation

This impacts all aspects of our businesses: our plants, our R&D projects, our sales & marketing policies, our relation to customers, our internal relations and organisations.

Even with employees => data privacy laws are becoming a hot topic today and companies need to adjust their strategy accordingly.

Machines or IA will be able to perform 70% of current tasks done by humans.

We have to think differently (agility, co‑working).

Changes in Customer Behaviour

In 2050, 9 billion people will populate the Earth. Our mission is to offer everyone the opportunity to move freely. In both urban and rural areas. In Western as well as in emerging countries.

The deployment of connected services and the emergence of new players has led to new consumption patterns. The demand for customization of mobility services is very high. Beyond the automotive sector, consumers’ expectations are now focused on user experience and quality of service.

Customers are looking for mobility solutions that fit their lifestyles. They want a range of mobility services that meet each of their needs. Car-sharing, intermodality, “on-demand” services are the new face of mobility. Transport modes coexist and downtowns are redesigned to reduce the space exclusively used by cars.

Of course, ecofriendly mobility is now a necessity for all.

Former Secretary of the Environment of Mexico DF (in charge of the climate plan and the “soft mobility” strategy), Martha Delgado is also the Executive Director of the PENSAR Foundation. Previously, she was a Member of Parliament (independent), leader of environmental community networks, former Governor of the World Water Council and Vice-President of the Local Governments for Sustainability (ICLEI) network.