THE megatrends of the automotive world are heading towards being Connected, Autonomous, Shared and Electrified (C.A.S.E. for short).
These megatrends are taking place slowly, since each of the components is intertwined and adoption will probably take effect at different rates.
Although Singapore is a very small automotive market, we’re particular fast in terms of technology adoption. This is due to infrastructure, savviness and the 10-year Certificate of Entitlement (COE) cycle.
As a result, these automotive megatrends will probably affect us sooner than most other countries.
Within Singapore, we are seeing that E-mobility and Autonomous technology are at the confluence of our own national initiatives: Smart Nation (digital transformation), Sustainable Singapore blueprint (carbon reductions) and Car-Lite society (urban planning).
While automotive megatrends determine how future vehicles are being designed, manufactured, sold and distributed, our own national initiatives will determine the way new vehicle technologies are implemented and used by society.
We believe these external and internal factors will reinforce each other over time, leading to E-mobility (and subsequently, autonomous tech) being broadly adopted in Singapore. As for autonomous tech, adoption is more complicated because it involves safety, societal acceptance and potential shifts in the job requirements to operate the vehicles, all of which will need to be considered.
How will businesses adjust to the changing environment?
This is a crystal ball question which is difficult to answer. The short answer is that all businesses have to constantly be on their toes.
This is especially true of some industries that will be directly threatened by C.A.S.E.
On the other hand, some other industries will benefit if they can move fast to address the opportunities.
It should also be noted that although there are threats to some of the incumbent industries involved with ICE (internal combustion engine) cars, there are also opportunities for new revenue streams or increasing profit margins due to reduced operational costs.
Relook At Policies
EVAS is currently in talks with policy makers on a number of topics and we are representing our individual and corporate members’ views and concerns.
The Road Tax formula for EVs is certainly an area we would like to see reformed. We believe that policies on EVs and AVs should be carefully reviewed in view of rapidly evolving technologies. We also believe that EVs are a vital step in Singapore’s aims for a sustainable future so initiatives which incentivise the use of EVs in the future should be supported.
Terence Siew is the President of the Electric Vehicle Association of Singapore (EVAS).