Automotive Property Consultancy Ltd (APC) have just released their second illuminating report into the future of the motor industry entitled ‘The Future of the Motor Industry – the impact on property’. This builds upon their November 2017 publication entitled ‘Electric Vehicles: the impact on property’, which focused solely on the impact of the electric vehicle.
Having offered extensive insight into the pace, width and opportunities that stem from motoring’s electric revolution, APC have now expanded their research to cover the future of the motor industry in a broader context.
As such, this latest report considers the potential and likely collective impact of the triumvirate of technological developments that are gradually filtering into the market and which are likely to shape its future. This new report expounds upon how the tripartite impact of these inextricably linked innovations has the potential to herald in a new and digitally enhanced future for the motor industry and property.
The motor industry is, has always been and always will be about Mobility Solutions. These new technologies together denote the most significant market shift since Henry Ford introduced the Model T and the first moving assembly line in 1913. When Henry Ford entered the automobile industry people did not drive their own cars, they were driven. We are now poised to return to an increasingly “driven’ world without any decrease in vehicle numbers.
Vehicle ownership and the way in which vehicles are utilized are inevitably evolving as these technological changes penetrate the market. The future of the motor industry is most likely to be electric, shared and autonomous and this presents a vast array of opportunities for the property industry.
Overlooking the shorter-term cyclical issues, it is the more fundamental structural developments happening with regards to car powertrains, autonomous driving and subscription services that are going to determine how the motor industry of the future interacts with property.
APC though remain consistent with their message that the motor vehicle will remain central to people’s mobility and that the car dealership will continue to provide the predominant route to market for this evolving product package. Of course, change means that there could be a re-ordering of the motoring hierarchy as brands compete to deliver the best new products and connected services.
Key points covered by the APC report include;
- Emphasising how the structural changes (electric/alternately fueled, autonomous, and shared) are interwoven.
- APC forecast that the impact of Alternatively Fueled Vehicles will be cumulative with AFV’s accounting for 50% of vehicles on the road and 100% of sales by 2039, as such Conventionally Fueled Vehicles (CFV’s) will still form the basis of the market for years to come.
- Manufacturers with “green credentials’ are set to be the biggest beneficiaries.
- Autonomous driving will at first be “geographically limited” to areas that can be fully and accurately mapped and navigated by interconnected fleets.
- Tech companies and the motor industry are forming mutually beneficial relationships that might squeeze out pure Tech companies successfully entering the mass vehicle production market.
- Millennials desire connectivity ahead of performance and delivery of the right mix hits the apex of this demand. Vehicle digital content is very important
The shape of the built environment is going to change, charging points are going to be required at every level. APC’s report examines the likely impact on key property sectors.
The “bricks & mortar” car dealership is the provider and maintainer of this evolving product package, the mothership for the introduction of the new technology and connectivity central to this new industry horizon. The best dealership sites will remain active. Good sized dealerships on good sized plots will remain desirable, and flagship dealerships will continue to serve an important purpose for manufacturers and dealers. A purpose that goes beyond selling cars, which also encapsulates building brand awareness and assuring that their product remains at the centre of public consciousness.
Established in 2005 Automotive Property Consultancy Ltd (APC) is a specialist property advisory business dedicated to the franchised motor retail property sector. Our clients include leading dealer groups, manufacturers, and property investors. The company’s sole focus on the franchised dealer market has enabled us to develop market leading sector knowledge and provide clients with a bespoke motor retail property service. We are also asset managers for the Motor Retail Property Unit Trust, an investment vehicle established in 2011 to specifically invest in the car dealership market which has accumulated 25 dealerships across the UK.
Full report available from:
http://www.automotive-property.com/perch/resources/apc-futuremotorindustry-report-v7.pdf
