Contrasting Visions of Car Ownership
On the one hand, the emerging middle class in developing nations like China, India and sub-Saharan Africa has more disposable income and sees car ownership as a sign of prestige and freedom. Thus, the vehicle parc in these regions is expected to grow significantly with a commensurate growth in the consumption of high-quality lubricants. As a result, a number of speakers at this and other conferences foresee great opportunity for base oil and additive suppliers, as well as lubricant blenders, in these economies.
On the other hand, two speakers noted that millennials see private car ownership as an unnecessary luxury. Increasingly, they are opting for a more flexible lifestyle wherein they rent the particular type of vehicle they need to fit the purpose at hand. A small vehicle for urban commutes, an SUV for family vacations, a truck for hauling household goods, a sports car for that special get-away to the mountains or shore.
The vision is for the right vehicle to be delivered to them at the right time and the right place. And once the task is finished, the car will move – autonomously? – to the next user. Thus, the car you drive to work wont sit idly in a parking lot for 8 hours, but will move on to the next customer. And multiple car ownership by families may become a thing of the past.
This scenario envisions increased fleet ownership of vehicles and driverless cars – something several manufacturers are investigating. This, too, is a positive move for the lubricants industry. The fleet owner, keen to keep its vehicles on the road and earning money, will ensure they are maintained regularly and will increasingly demand higher quality lubricants that reduce the cost of ownership.
The future looks bright but is also full of uncertainty. You can rely on LubesnGreases to keep you abreast of how these changes will develop.
– Howard Briskin
HBriskin@LubesnGreases.com