Future of Car Ownership

Henry Ford’s Model T, introduced in 1908, changed our world in ways no one could have imagined. Ford’s revolutionary breakthroughs changed every industrialized country on the planet and shaped the future of mass production. From its humble beginnings, the Model T transformed how the world lived, worked, and traveled.

• Ford’s mass production processes defined the industrial age. In 1908, the Model T sold for $825; by 1925, the price was $260.
• Henry Ford established a minimum wage and an eight-hour workday.
• Until 1972, when the VW bug surpassed production numbers, the Model T was the “Car of The Century,” selling more than 15 million vehicles.

Fast forward to today, and Henry Ford’s revolutionary influence on the world is still going strong.

Here is What to Expect in the Automotive World

What will the future of car ownership look like? Will the future hold the same pioneering force as the Model T?

No other industrial arena embraces innovative technologies like those of the automotive world, from passenger cars and trucks to marine and motorsports and every company in between.

The latest technological trends have shifted the automotive landscape towards electrification, autonomous driving, and connectivity. Tesla is a good barometer of what we can expect from the automotive industry.

Two significant innovations are well underway:

• Electric vehicles are here to stay, getting more intelligent and efficient each year. Battery technology is advancing quickly, making EVs more affordable, with greater range and shorter charging cycles. Government subsidies make electric vehicles a viable option for many new car buyers.
• Autonomous driving is on the scene and getting closer to a full rollout. Some metropolitan areas already have self-driving cars, trucks, and delivery vehicles in place, and they are steadily growing. Advanced consumer theories see the future of autonomous vehicles doing away with car ownership. Even though the impact of car sales would be negatively impacted, money and resources could be redirected elsewhere.

Artificial Intelligence

The automotive industry uses artificial intelligence and machine learning technologies to discover new ideas for operating more efficiently and selling more cars. Enhancing the in-car experience is underway with predictive maintenance, simulation testing, and vastly improved safety initiatives.

Connectivity with the cloud and much improved 5G technologies are advancing mission-critical procedures from automakers’ manufacturing plants, research and development, dealership operations, and improved customer expectations.

Automotive Trends

Innovative trends in the automotive world will reshape how we experience transportation. Moving from point A to point B will be redefined now and in the near future, just as the Model T revolutionized mobility.

Game-changing technologies:

• Two significant drawbacks to electric vehicles are the range and charging times. Solid-state batteries are a significant step in the right direction. Lithium-ion batteries, which power most of the EVs on the market, rely on liquid electrolytes to facilitate the flow of ions. Solid-state batteries replace the liquid with a solid to improve low and high temperatures and significantly improve energy densities. Toyota and other automakers are leading the charge in solid-state technology. Nybolt, another high technology firm, claims their fast-charging battery is just six minutes.
• Another innovative technology is now being developed in Sweden, where engineering takes a novel approach to electric vehicle charging. Scandinavian countries are pioneering electrified roads through overhead cabling or inductive charging. Innovative road technologies include street signs and traffic lights; however, Sweden has increased its infrastructure and built the world’s first electrified road for charging EVs while driving. Many transportation experts believe this is the way to decarbonize the transport sector.
• High-end performance vehicles may soon adopt the McMurtry Spéirling fan-assisted downforce technology, which may revolutionize the automotive world. Electric turbines positioned behind the cock pit draw air from beneath the chassis and blast it out the rear exhaust.
• Nothing is more annoying or expensive than coming out to your vehicle and finding door dings, scratches, or malicious keying down the side. Llumar technologies have changed those annoyances with its self-healing paint film. Llumar’s paint protection film was designed for high-end vehicles, where protecting the paint keeps the vehicle’s value intact.
• Heads-up car displays have been around for several years now; however, WayRay has taken the technology to enhance the driving experience further. The company produces cutting-edge augmented reality, providing drivers with advanced navigation, real-time information, and points of interest; WayRay’s proprietary holographic AR technology takes the connected vehicle to unbelievable new heights -vivid 3D imagery without headgear.

Ride Sharing

The day will come when your ridesharing vehicle arrives with other passengers, with one notable omission: No Driver. Ridesharing companies such as Uber and Lyft are investing heavily in technology but losing money. Many of the older ridesharing companies based their business model on autonomous driving. However, human drivers are the main labor cost and are not going anywhere for some time.

Revenue in the US ridesharing space is expected to reach $108 billion in 2024 and grow annually at 1.09%. The ridesharing market is expected to reach nearly 22.3% by 2027. By 2028, the number of riders is expected to reach nearly 196 million. The most successful ridesharing company is InDrive, operating in over 700 cities and 45 countries.

Car sharing, Maas(mobility as a service), peer-to-peer ride sharing, and car subscription services are the new monikers making their way into densely populated urban sprawl. Rather than the dream of owning a vehicle, Gen Z and Millennials are thinking of ditching the vehicle for more innovative modes of transport.

On-demand vehicles are now more practical as urbanization steadily increases. In 1990, there were ten megacities of 10 million or more citizens; by 2030, there is expected to be over 43. By 2050, 7 in 10 people will live in a megacity.

Car subscription services are gaining popularity, with large dealer networks getting in on the action. Porsche, Volvo, Mercedes-Benz, and Cadillac, and others have launched their own services. The cars are slightly used and come with a lot of perks. The subscriptions are not cheap. Third-party ridesharing and subscription platforms act as a one-stop shop for consumers looking for a hassle-free way to get a new car without the “drudgery” of ownership.

Automakers, dealership networks, and established ridesharing platforms are doing their best to maintain and grow a consumer base, looking for alternatives to ownership.

Porsche Drive is an example of a high-end subscription service. Consumers can rent a 911, Cayman, Panamera, and other models for a few hours or monthly. A $3100 subscription fee covers insurance, maintenance, and a weekly detailing perk.

Borrow is a short-term electric vehicle subscription service. Consumers can rent a lightly used or off-lease EV for three, six, or nine months. However, Borrow is testing its idea only in the Los Angeles market area. Service tiers range from $199 monthly to $399, depending on the vehicle and other options. Maintenance and roadside service are bundled into the price, but insurance is not.

Final Word

There are a lot of single and multi-car companies trying to get in on the ridesharing revolution, with many of them willing to lease or share their vehicles for any length of time. Consumers interested in this type of ridesharing need to watch out for the multitude of scams. Hidden fees, added expenses at the last minute, and worthless insurance are just a few of the hazards.