The next
generation automobile will pollute less; it will use up fewer resources;
more people will own one; and it will constantly communicate with
other automobiles to minimise road congestion, emission and accidents.
While the automobile may transform in other
ways as well, the evolution will be driven as much by pressures
of civil society and public policy as by the compulsions of competition
and the free market.
In recent years, the automobile has become
more attractive, shapely and colourful. While improved aesthetics
is the result of design creativity and innovation, the more decisive
evolution of the automobile has, perhaps, taken place elsewhere.
In the last two decades, the power of the internal
combustion engine has more than doubled. In response to legislation
like the Clean Air Act in the US, its emissions are down sharply.
The fuel efficiency of the internal combustion engine is far superior
now than before the oil crisis of the 1970s.
This evolution was clearly inspired by macro
and social concerns. In future too, the evolution in the automobile
will be a response to community concerns on energy, environment
and affordability that will accompany the expansion of the global
automobile market.
Aspiration for the automobile will accelerate.
By many accounts, the automobile industry is today poised for significant
growth over the next two decades. Experts predict a dramatic increase
in automobile ownership in countries like India, China, Korea, Brazil
and Russia, without suggesting any major let-up in the secular growth
visible in the developed economies.
Goldman Sachs has predicted that automobile
ownership in China, for instance, will go up from 15 per 1,000 people
to 32 per 1,000 people by 2010. In India, this figure will go up
from eight to 12 cars per 1,000 people.
Certain other experts speak of India as being
at the "inflexion point", from where a sustained 20 per
cent annual growth in automobiles is likely. Even the most conservative
projections settle for nothing less than a 12-15 per cent long-term
annual growth. These experts also project a sharp growth in energy
consumption to feed broader economic growth, including mounting
automobile ownership.
This growth in automobiles will not spread
evenly; it will most likely be skewed in favour of the prosperous
zones within these countries. As such, the impact of a concentrated
automobile boom on the civil society in these zones will be that
much greater.
The automobile industry would foster economic
and employment growth, but equally, face criticism for its impact
on energy, environment, and quality of life |
There may, thus, be a scenario where the automobile
industry will foster economic and employment growth, but equally,
face criticism for its impact on energy, environment and the quality
of life. More and more people will want the joy of mobility, without
the community willing to pay such a high price for it.
Already, there are pockets where public policy
has responded to this. In London, for instance, car users wanting
to enter select areas in the centre of the city have to pay a congestion
charge of £5 (Rs 420) a day. The revenue from this is used
to improve public transport in these areas.
Although there are protests from retailers
in the area alleging a decline in business, car traffic in the designated
area has come down by 10 per cent. The London authority is yet to
meet its targets for revenue and decongestion, leading to fears
that the toll may be extended to other areas!
A more comprehensive initiative has taken place
in the Colombian town of Bogota, where the local mayor is determined
to "squeeze out" cars from the roads and make way for
pedestrians and green spaces. He is clear that he will not invest
public money in flyovers or similar activities that encourage car
use. Instead, he will secure more bang for the buck-and votes-by
spending on public transport, parks, public amenities and bicycle
tracks.
In Shanghai, the authorities are able to contain
the number of cars by restricting the number of vehicle registration
numbers available. These numbers are tradable, though, and the going
rate is close to $4,000 (Rs 1,76,000).
The experience in Singapore is widely known,
where the number of vehicles is regulated through a vehicle quota
system. Users have to bid for a limited number of "certificates
of entitlement" and also pay a "quota premium" before
they can ply their vehicles.
These are yet isolated instances of concerted
civil action to restrict use of automobiles. But over time, it will
be a key factor in shaping the agenda of research and development
in automobiles.
One of the ways in which the industry will
respond to this is by increasing the efficiency of automobile and
road use through use of information technology (it). While it has
improved efficiencies across the entire range of economic activity
starting from investment capital to raw material inventory to customer
relationship, its potential for reducing road congestion, driver
fatigue, accidents and energy consumption is yet to be tapped.
This is perhaps the best phase in the history
of the automobile. It is prettier, safer and more aspired to
than ever before. Just the right time to shift gears and evolve
to the next grade |
The industry will deploy it to reduce "wastages"
in road use arising out of information gaps, such as traffic jams
and search for parking space. The automobile will be completely
geared to gather and interpret information on a range of subjects
such as traffic conditions in the city centre, the distance between
one automobile and another, and other "driver-assist"
information.
There is early success in the use of GPRs and
telematics, and this will evolve into a broad-based system where
every automobile is part of a network capable of offering customised
and real-time information to the user.
Use of it will be one route to reducing energy
consumption of automobiles. The other will be innovation in engine
technology. While internal combustion engines will continue to improve
at a rate of 1-1.5 per cent in terms of fuel efficiency, power and
emissions, the next generation vehicle will mostly likely have broken
off from this 20th-century technology.
The first small step in using technology to
reduce energy use and contain air damage is to enable more environment-friendly
fuels like LNG and CNG This is in a nascent stage in India.
The next step is hybrid vehicles, like the
Toyota Prius or Suzuki Twin Hybrid, which can be powered by both
an internal combustion engine and an additional source like a battery.
Although there are issues of cost and performance owing to integration
of two technologies, hybrid vehicles are indeed a cleaner option.
At the frontier of engine technology is the
fuel cell, the zero emission option where the vehicle effluent is
just water. It is also more efficient, as it works by converting
hydrogen and air into electricity, which in turn powers the automobile's
motors.
The promise of the fuel cell has fostered collaborations
among automobile companies on both ends of the globe. While even
the most optimistic projections see a mass-produced fuel-cell vehicle
as being some years away, this will certainly be the most significant
point of difference between a vehicle of this generation and the
next.
Even as the automobile acquires sophisticated
information systems and new engine technology, and generally becomes
safer and more reliable, the industry will continue to work on cost
and affordability.
Much of the scorching growth predicted for
the automobile industry will be on account of first-time buyers,
making affordability an important attribute of the next-generation
automobile.
A large part of the economies will come from
collaborations between manufacturers and "communisation"
of vehicle platforms. As vehicle life cycles shrink, manufacturers
will be under pressure to keep costs down and reduce time to market
for new models. This will foster sharing facilities among manufacturers,
collaborative research and closer involvement with component suppliers.
Advanced technology and features in the next-
generation automobile need not preclude affordability. They could
facilitate it. Fuel cell technology, though prohibitively expensive
at this stage, promises to bring down the cost of maintenance. Even
the cost of the fuel cell engine itself is down to 5 per cent of
what it was a decade ago.
Car makers like General Motors are already
talking of how a move from mechanical systems to electronic controls
will redefine the economics of the automobile. As electronic controls
take over (facilitated, incidentally, by fuel cell engine technology),
the chassis may not need to be linked mechanically to the body.
In that situation, it may be possible to combine
alternative automobile bodies with the same chassis. Assuming the
life of a chassis is 20 years, the body of the vehicle can be "renewed"
every few years to yield a new automobile each time! Clearly, this
flexibility will have profound consequences for the automobile business.
Although these options are still being assessed
and debated, they give us the hope that sophisticated technology
may not be inconsistent with affordability.
In over a century of its existence, this is
perhaps the best phase in the history of the automobile. It is prettier,
safer and more aspired to than ever before-just the right time to
shift gears and evolve to the next grade.
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