The automotive and transport sectors are undergoing a period of significant change as we look towards a greener future. The UK government’s move to ban the production of traditional petrol and diesel vehicles by 2030 is a sign of real intent, and automotive brands will need to accelerate their planned shift to electric accordingly.
This opens the space up to new players not currently associated with the sector but premium brands in their respective fields – think Dyson, Apple, and Google, all of whom are investing in automotive projects. Not to mention Tesla, a relatively unknown business a decade ago that has evolved into an automotive powerhouse. Today, Tesla is a viable ‘luxury’ option for electric vehicles, with a cultural relevance that has seen the company recently valued at £593bn ($800bn, €658bn). In fact, it was one of only two brands to actually increase UK sales in 2020 despite the industry experiencing the worst decline since the Second World Two.
The bigger question, however, is this: what’s the future purpose for the traditional automotive brand? The car was always a mark of independence, freedom and status. Getting your license was a rite of passage into adulthood with the endless excitement of the open road.
Nowadays, however, young people are moving away from car ownership, with the proportion of Brits aged 17–20 holding a driving licence falling 40% in recent years, according to the Department for Transport. There are also greater restrictions on how we enjoy cars, including greater taxation, rising fuel prices and speed restrictions. What is the incentive to spend so much on vehicle ownership?
This will only be compounded by the emergence of autonomous vehicles, which will remove the driving pleasure that car brands have long traded on. No longer is the engine noise or the pure excitement of driving a factor. It becomes a different experience, one of space design and the environment you can create going from one place to another, rather than the driving itself.
