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Future of Auto Industry lies in car sharing says Chinese Executive

Future of Auto Industry lies in car sharing says Chinese Executive
Future of Auto Industry lies in car sharing says Chinese Executive

A number of Chinese automobile and transport industry leaders are getting ready for a future where people share automobiles, as opposed to own them separately.

“(The new creation ), they are not considering the possession. They are probably more interested in availability,” Freeman Shen, founder, and CEO of Chinese electrical automobile company WM Motor stated last week in CNBC’s East Tech West seminar at the Nansha area of Guangzhou, China.

Technological improvements in the past several years have helped the growth of multibillion-dollar ride-hailing giants like Uber and Didi. They, consequently, have contested the standard taxi driver program and cultivated a habit of on-demand car providers for tens of thousands of consumers worldwide despite ongoing security issues. Conventional automakers, many already hoping to browse climbing interest in the electric car market, are paying close attention to this ride-sharing tendency. Especially, General Motors is testing the waters with its very own lease program.

In China, Feng Xing Ya, general director of Guangzhou-based automaker GAC, also said the future of the car industry is located in car sharing.

“(It is ) a struggle for the automobile industry because individuals may purchase fewer automobiles,” Feng said in Mandarin,” as per a CNBC translation, through a Nov. 27 convention session.

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Without giving much detail about a strategy, Feng said he preferred a plan of entering rather than preventing — the automobile sharing market, which he said might nevertheless create a good deal of income for an organization.

But, such a quick shift in consumer preferences can provide start-ups a benefit.

Shen, previously a manager at Fiat Chrysler and Chinese automaker Geely, stated conventional automakers are overly focused on selling automobiles instead of enhancing consumer experiences. He explained that his company’s focus on applications and newness to the marketplace means he’s everything to gain and little to lose from a change to journey sharing.

Shen based WM Motor — that stands for”world champion” in German — in 2015 and the firm has obtained over $1 billion in financing, based on Crunchbase.

The growth of car sharing could also cause new types of living surroundings in China as Beijing tries to promote urban and technological improvements via”smart cities”

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“If we are able to allocate the chairs rather than vehicles… then we may use the transport system better,” Henry Liu, vice president chief scientist of clever transport at Didi, stated during a seminar session.

“If you take into consideration the upcoming town, I believe that the upcoming town is going to have less regarding parking spaces, street spaces, since we do not really require that a lot of distances for vehicles,” Liu explained. “At the moment, I believe we’ve got an autonomous car fleet. And they’re able to function as transport demand.”

About the author

Robert Costa

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Robert is the founder of SpanDaily. Before working on the idea of SpanDaily he worked as a national political reporter at The Washington Post. He joined The Post in January 2014 and covers the White House, Congress, and campaigns. He is also the moderator of "Washington Week" on PBS and a political analyst for NBC News and MSNBC. He holds a bachelor's degree in American studies from the University of Notre Dame and a master's degree from the University of Cambridge.

To get in touch with Robert for news reports he published you can email him on [email protected] or reach him out in social media linked below.

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