Watch Out These Urban Mobility Trends for 2017
The Indian automobile industry is probably one of the fastest growing and one of the biggest in the world. It has witnessed steady growth over the years due to rise in disposable income and better spending capacity of the urban millennial youth, who rely on not just one, but various types of transportation modes for their day to day commuting needs.According to a report by Indian Brand Equity Foundation (IBEF), the automobile industry witnessed an increase in Sales of passenger vehicles by 16.7 per cent to 2, 58,000 units in August 2016, while Sales of commercial vehicles grew by 1.53 per cent to 52,996 units.
Additionally, with a rise in usage of innovative technology, many players have begun to exploit opportunities available in the Indian market, and are come up with their share of mobility related services that are both unique and technology enabled. Wipro, India's largest Information Technology Services Corporation, stated in a report that India's growing urban population makes up one-third of its total population. It is predicted that this will reach over 38 per cent by 2026, and more than 58 per cent by 2050, which means that an estimated 875 million people are expected to live in urban areas across India in the future.
To manage such a massive population, India will have to heavily invest in development of infrastructure, especially in mobility, which could help in ensuring efficiency in modern transportation across the country.
Urban Mobility Trends in India: What to expect in 2017
While 2016 witnessed an increase of on demand transport aggregators that became urban India's go-to solution for commuting on a budget from one place to another, let us explore the trends that are touted to transform the Indian mobility scenario in 2017:
- Rise in Commercialization–Commercialization in urban mobility can play a significant role in making transport services more affordable so that each and every individual, irrespective of economic status, can access such facilities in times of need. While the majority of people in India still prefer to invest in personal vehicles, there is a good chance that commercialization will be able to attract more customers in the next couple of years.
- Funding Opportunities– As previously mentioned, sustainable / urban mobility in India requires steady funding from key growth accelerators to develop comprehensive infrastructure that can help this segment augment its growth to a greater extent.
While the country has been able to receive steady investment via Foreign Direct Investment (FDI) under the Government of India's nation building initiative, "Make in India', optimal utilization of these funds can ensure more opportunities for growth of urban mobility. It is expected that sustainable mobility will attract massive investment opportunities in 2017.
Technological advancement & Adoption of Innovative Business Model–Some industry insiders have predicted that more and more market players in the Indian mobility space will adopt and integrate innovative technology to offer highly efficient and dynamic services to consumers. What's more, some on demand aggregators are expected to adopt innovative and multi-modal transportation models to further upgrade their products & services, and further contribute towards creating a more sustainable environment.
Impact of Self-Drive startups – Over the past couple of years, India witnessed the arrival of several dynamic Self-Drive startups, which played a key role in de-congestingroads and parking spaces across the country. In the upcoming year, we can expect to see more demand for such services in the market, especially among the millennial populace who are the major growth drivers of this trend.
Car sharing – Car sharing is another such trend that has received nationwide acceptance among the youth. The biggest selling point of this sharing model lies in its cost-effectiveness, allowing customers to fulfil their commuting needs without burning a hole in their pockets. Apart from that, such services offer various benefits like de-cluttering of roads and reduction on carbon emission levels. Given such positive facts, it can be confidently assumed that car sharing will be one of the most prevalent trends in sustainable mobility across India in the future.
Policy implementation– While urban mobility in India has begun to transform itself for the better with the help of technological advancement, the need of the hour is to implement smart policies that can play a significant role in standardizing the Indian transportation space, enabling equal opportunities for all involved.
According to Wipro's analysis, the current scenario and the emerging needs and patterns of mobility in Indian metropolises like Delhi, Kolkata, Mumbai, Bangalore, and Chennai will require the following: A comprehensive 10-year mobility plan;Consideration of various challenges related to urban mobility in these cities, and developing solutions to overcome the same; and finally, Establishing how these plans can help in achieving the sustainable mobility objectives of each city.
While the aforementioned are touted to be the biggest trends for the upcoming year, mutual understanding between policy makers and consumers will be required to make such advancements a success in the long run. For now, it can be safely concluded that these trends in urban mobility will be the talk of the town in 2017.