Avis studies car ownership trends

SINGAPORE 28 November 2019: Is the love affair with owning a car showings signs of wear and tear?

A recent report by  Avis Budget Group showed the car’s popularity would stay strong in the upcoming mobility shift, but attitudes towards car ownership were changing significantly.

More than two thirds (63%) of residents in Singapore surveyed think that owning a car is still important and more than half (51%) still see the car as the ideal mode of transport.

But 73% surveyed said that they would consider giving up car ownership and rely on long-term car rental if it was convenient and easy for them, ranking second among all the countries surveyed.

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 Singapore, 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.

The single biggest factor leading the transport revolution is technology, specifically 5G networks.

Most recently, the Singapore Government has shown strong support and announced plans to roll out 5G coverage across half of Singapore by end-2022.

The large amounts of data provided by the 5G networks will enable mobility companies to collect data for insight, which can be used to improve travel experiences.

To this point, Avis Budget Group’s research revealed that more than two thirds (65%) of respondents feel comfortable having their data accessed and shared for the implementation of smart infrastructure and better travel experience.

Additionally, 68% of respondents shared that they take two or more modes of transport, or multi-modal journey, for their “typical everyday journeys”. Data technology also make complicated multi-modal journey planning much easier where previously the planning would have been a real challenge.

Avis Budget Group president international, Keith Rankin said: “Driven by technology advancements and the influence of services like Amazon, Netflix and Spotify, people today want to consume and access products and services at the click of a button. The expectation for an on-demand service has impacted the mobility industry and resulted in the evolution we’re seeing today – from being able to book a taxi instantly to hiring a car for a week-long holiday, all from your smartphone.

“However, our report reveals that we are now seeing a rise in this demand for instant access and flexibility, resulting in changing behaviours towards car ownership.”

The Avis Budget Group Road Ahead: The Future of Mobility Report examined the current and near-future mobility landscape across markets in Europe and Asia.