Change is coming
- May 15, 2018
- Posted by: Simon Wait
- Category: IBIS News
David O’Connor, head of aftersales, KIA Motors Ireland told IBIS Ireland 2018 delegates that the 2020 climate and energy agreement is a key driving force for vehicle manufacturers’ development programmes.
Highlighting a number of EV developments and models, David suggested the demand for KIA’s Niro plug in hybrid exceeded all expectations – ‘consumer demand is changing’ said David as he discussed the increasing awareness and infrastructure available.
Asking if the product line-up is ready – David pointed to how technology is evolving rapidly via connected services. He suggested that by the end of 2019, KIA could have three fully electric vehicles available along with a variety of introductions from other manufacturers – ‘in the next 18 months, the supply of electric vehicles is set to explode’ said David.
David pointed to how the total automotive market will be valued at $7.8tn by 2030 with established vehicle manufacturer brands share of that overall value decreasing from circa 70% in 2015 to around 40% by that time. He referenced brands such as Dyson, iCar and Uber as being challenger brands likely to absorb 60% of the marketshare. A key change in the make up of the market value will be digital services making up 20% of the value and shared moblity a further four per cent whilst vehicle sales values will reduce from 41% to 29%.
Aftersales is another area expected to decrease in total market value terms from 16% in 2015 to 10% in 2030 – ‘filling the aftersales gap is a real concern at European and global level – and that is a huge challenge for dealerships too’ said David.
Highlighting the megatrends according to KIA, David pointed to autonomous driving, mobility services, electrification and connectivity were all critical to future success yet all presented their own challenges for all stakeholders.
In closing the session, David commented, ‘How much change will we see and when? Who knows. But we need to be prepared for change.’
IBIS Ireland is supported by lead partner AkzoNobel and partners Audatex, Fix Auto and Synergy.