EASCY: The Future of the Automotive Industry | GKL: Vehicle Leasing

EASCY: The Future of the Automotive Industry

October 24th, 2019

Futuristic car being driven on the road with the steering wheel visible

What is EASCY?

According to this report by PWC, the future of the automotive industry is going to be EASCY. But what does the term mean?

EASCY is an acronym for Electrified, Autonomous, Shared, Connected, and ‘Yearly’ Updated. This is what these terms mean:

  1. Electrified: Cars are rapidly moving away from traditional fuels. While there are Hydrogen-fuelled vehicles being developed, it is electric cars and plug-in hybrids that are predicted to be the future of the automotive industry.
  2. Autonomous: Car technology is gearing towards self-driving cars. There are different levels of automation, where level 0 is no automation at all and level 5 is a vehicle that needs no driver at all. We are not quite at the point of the self-driving taxis of ‘Total Recall’, but we are very close.
  3. Shared: Vehicle sharing is becoming more and more popular.
  4. Connected: The vehicles today are more computers than cars. They have high processing powers, sometimes even higher than computers from a few years ago. They are connected, whether to the internet, the traffic management infrastructure, or even to each other.
  5. ‘Yearly’ Updated: Smart vehicles will regularly update their own software. They will also be able to monitor their own health, and book appointments for maintenance, if required.

Other Factors Affecting the Automotive Industry

While the vehicles are going the EASCY route, there are various other factors that affect the future of the automotive industry. These are:

The Road to Zero

The uptake of electric vehicles, driven by the ‘Road to Zero’ plan, is increasing. The number jumped from 3,500 plug-in cars registered in the UK in 2013 to a whopping 227,000 by the end of August 2019, as per this report.  With electric vehicle grants and subsidies, the numbers are only going to go up.

Fewer People Choosing to Drive

With ready access to public transport, fewer young people are choosing to drive. This is evident from the number of youngsters applying for their first driving license, with the number dropping by 40% from the early 90s. They are also spending more time at home, using mobile phones or laptops instead of going out to socialise.

Car Ownership Difficult in Big Cities

Overcrowded cities come with parking problems, stressful traffic, and congestion charges. All of these factors make car ownership a burden in these places.

How Do These Affect the Future of the Automotive Industry?

Vehicle Leasing and Renting

EASCY vehicles will completely transform the way we use vehicles. Driverless cars, especially, will make commutes less stressful. However, it is the Shared aspect of EASCY that will make the most difference.

Since fewer people are choosing to drive or to even own a car, vehicle sharing will be the future. This means people will choose to rent or lease a vehicle when they need it if they aren’t opting for car-sharing services like Uber or Lyft.

This trend will also affect company fleets. Leasing is already a more cost-effective option for businesses since it costs less than buying a vehicle, and it also shields them from the effects of vehicle value depreciation.

However, with more people choosing not to drive, leasing autonomous vehicles would make the most sense. This will allow employees who cannot drive to take advantage of a company car. These cars could then also be used for carpooling, driving along the most efficient route to pick more than one employee.

Then, once they have reached their workplace, the employees would not have to waste time looking for parking as the vehicle will find the right spot and park itself!

Change in Fleet Management Role

Yearly updated cars will also make a difference in the role of the fleet manager. If cars could schedule their own maintenance, it would leave managers that time free to invest in other, more meaningful, tasks.

Fleet managers in parts of Europe are already moving away from managing fleets, becoming mobility managers instead.

With more connected vehicles, telematics will also become easier for fleet managers. The fleet vehicles will collect and share information about their location, the engine and fuel status, as well as any issues they may be facing. They will then need to invest in data security to prevent all that information from being hacked.

In conclusion, there is a very high likelihood that in the future, vehicles are leased rather than owned. With electric vehicles that are autonomous, most people would not even need to learn to drive. Moreover, fleet maintenance will become easier for companies as vehicles would self-maintain and send their information in real-time.

Further Reading

If you wish to lease vehicles for yourself or your business, give us a call on 01844 852000 or email us. We will be happy to provide you with all the information you need. You can also book a test drive for the vehicle of your choice.