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Autonomous driving to shake up car industry more than EVs


16 Jan, 2017 09:00 am

Self-driving cars are expected to represent by far the most disruptive technology introduced for the automotive industry in the coming years compared to electric cars.


@ Fotolia

Electrics cars are beginning to shakeup the industry as their adoption begins to shift to the mainstream as popular alternatives to combustion engine cars. But self-driving vehicles are set to radically transform the business models of how cars are bought and sold in the more distant future.

Car sharing and mobility service providers are preparing to launch fleets of self-driving cars in urban areas for taxis services, which are expected to slash operating costs since drivers will not have to be paid. Demand for driverless mobility services is set to skyrocket as consumers forgo car ownership in favour of more affordable alternatives.

According to New York-based asset management firm ARK, demand for driverless taxis could eventually reduce by half the total of cars purchased every year in Europe and the U.S. UBS says autonomous vehicles will reduce car sales by 3-5%.

Read more on Wall Street Journal
 
TAKEAWAY TREND
Driverless taxis and autonomous car-sharing fleets are expected to create a massive shift away from traditional car ownership in favour of affordable mobility services.
Explore the Trend: Machine learning, Artificial intelligence: When machines start showing initiative

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