CX Insights - Trend Watch - Automotive Industry (ICYMI July 2024)
Dog days of summer or not, there’s no time to rest as the consumer continues to flirt with the future of mobility. What will it be? Battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), Alternate Fuels, internal combustion engine (ICE)? Amid high temperatures and six-month sales reviews, July brilliantly showcased the resiliency and innovation that keeps the industry constantly firing on all cylinders. OEMs are actively responding to customer needs while working to reach zero emissions.
| NOT READY FOR FULLY ELECTRIC? THERE’S A HYBRID BUILT JUST FOR YOU!
As we’ve discussed in a previous blog from this year, EVs, Alternative Fuels in Bloom, the market for BEVs seems to be growing, but at a rate slower than expected. This month saw a host of stories describing pivots designed to support the market through its transition to an all-electric future. In this article from JustAuto, we see Ford, Renault, Kia, Hyundai, Porsche and Stellantis addressing customer demands by refocusing on HEVs and ICE as transition technology.
Will this transition technology evolve into a permanent solution? According to Bedwell, full hybrid electric vehicles (FHEVs) will continue to rise, but they will be limited by the regulatory need to transition to zero-emissions vehicles, which means, ultimately, BEVs. We are looking forward to seeing more and more innovations as the transition continues.
Hyundai’s hybrid vehicle sales jump over 26% YoY, resulting in two consecutive quarters of double-digit growth – proof that consumers are thinking outside the ICE box (ouch, couldn’t resist).
Genesis is working to bring a range of hybrids to market due to customer demands.
To meet growing demand, Stellantis is planning to offer 30 more hybrid models this year for nine of its 14 brands, including Fiat, Peugeot, Jeep and Alfa Romeo, and launch six more over the following two years.
But it’s not just vehicles where progress is being made; synthetic fuels are turbocharging sustainability from streets to skies.
Porsche premiered a video on how Porsche's synthetic fuel could alter the course of automotive history, helping to educate and excite consumers on the possibility of synthetic (e-) fuels.
“Imagine a fuel that not only ignites your engine but also ignites your passion for sustainability.”
And Porsche has successfully brought that dream into reality. The company tested its first synthetic fuel-powered car and expects to go mass-market by the end of the decade. It continues to invest (over $75 million) and is partnering with industry giants like Exxon and British Petroleum to make e-fuels a reality.
| UP IN THE SKY… IT’S A BIRD, IT’S A PLANE … IT’S A PLANE SOARING ON SYNTHETIC FUELS!
The Royal Air Force (yes, the one that protects the King of England) flew an Airbus 330 for 90 minutes using synthetic fuel – a feat lauded as “a breakthrough moment for aviation” and, I would add, for sustainability as well. The RAF Voyager took to the skies over Oxfordshire using waste-based fuels, including used cooking oil.
Sustainable aviation fuels, known as SAFs, have the potential to reduce carbon emissions by up to 80%, according to the RAF. As well as being a U.K. first, the flight was also the first in the world to use fully sustainable fuel for a military aircraft of its size.
If you want to learn more, you can also check out Simply Flying’s recent article on the subject. Makes you think differently about the next time you order fish and chips!
| FLY ME TO THE … AIRPORT?
Does anyone else remember the Moller Skycar that was hover testing in 2003? It’s now closer than you think, sort of … As we discussed in our February article, the “dream” of going to your closest mall parking area or to jump on an air taxi to get the airport continues to rapidly become a reality. We have moved from CES presentations and announcements to additional investment, additional testing and actual plans in the works.
Stellantis has invested an additional $55 million in Archer after reaching a transition flight test milestone.
While the logistics behind the flight to your flight are yet to be determined, the technology is gaining altitude. Southwest Airlines has its boarding pass ready to go as it makes a deal with Archer for an electric air taxi network. These eVTOL (electric vertical takeoff and landing) air taxis can make a trip that normally takes 60 to 90 minutes by car in about 10 to 20 minutes. Also ready to board is United Airlines, who placed a $1 billion order for eVTOL aircraft. Archer plans to launch the air taxis before the end of 2025. That should make holiday travel much jollier!
Hyundai is in the clouds with its version of air taxi. Its four-person OPPAV (optionally piloted personal/passenger air vehicle) had a successful pilot run in Indonesia. This achievement has Hyundai looking to commercialize the technology by 2028. George Jetson never had it so good!
That’s your ICYMI for this month. Providing sustainability while allowing the freedom of unrestrained distance continues to be a driving factor in customer buying decisions. Leaving the driving and flying to them is in development with potential realization in under 16 months. Just in time for Elroy to get his license.
We will be back next month with another ICYMI, giving you all the news you need to know in one insightful recap.
Comments