A new report by Avis Budget Group, a leading global provider of mobility solutions, has revealed that while the car’s popularity will stay strong in the upcoming mobility shift, attitudes towards car ownership will change significantly.
Almost all (97%) of residents in Malaysia surveyed think that owning a car is important and 67% still see the car as the ideal mode of transport. However, more than half (51%) said that they would consider giving up car ownership and rely on long-term car rental if it was convenient and easy for them.
The report, titled The Road Ahead: The Future of Mobility, examined the way in which the mobility landscape is changing around the world, how it is likely to look in the future and, how people in different countries view these changes.
In the research conducted across 16 countries in Europe and Asia, including Malaysia, respondents revealed that over the next decade, consumers are likely to move to an access-driven and on-demand model as their favourite mode of transportation.
To be honest, this would explain the surge in car subscription companies that we’ve been seeing in the past year.
Car subscriptions offer users more value for money short term as compared to taking a hire purchase loan and actually owning a car. Of course buying a car the traditional way gives you more value, as you’ll eventually sell the car but there is no doubt that there’s a market for car subscriptions here in Malaysia, especially for expats who are likely not to be here long or people who like changing cars every couple of years.
The single biggest factor leading the transport revolution is technology, specifically 5G networks. Once implemented, the large amounts of data provided by the 5G networks will enable mobility companies to collect and mine data for insight, which can be used to improve travel experiences.
To this point, Avis Budget Group’s research revealed that 73% of respondents feel comfortable having their data accessed (which in all honesty is rather worrying) and shared for the implementation of smart infrastructure and better travel experience. More than four-in-five (81%) of respondents also expect driving to become easier in the coming years.
