South Africa can do more to create market access and deliver on an operating environment which makes for good business, says TREVOR HILL – Head of Audi South Africa.
Competition in the premium automotive market is fierce but there is an elephant in the room. The demand we create for alternative mobility technologies (be it fully electric or hybrid) brings with it a very real infrastructure gap. Not addressing this today, will unfortunately prevent any meaningful ability for the local automotive sector to competitively participate in global trends. Doing this right would mean that we can deliver on local customer demand while still operate globally as a competitive automotive investment destination.
There is a firm reality; staying ahead of the pack means constantly innovating current technologies that, to a large degree, progresses the automotive segment as a whole. The downstream benefit of product innovation is clear, but it cannot be the job of the automotive industry alone. In the premium segment where the desire to drive ahead of the curve is expected, the introduction of new technologies around electrification and artificial intelligence creates real opportunity.
What the South African automotive segment does not need is potential. What it does need is a practical and inclusive plan that supports the growth needed – and more importantly enables both education and adoption for a new world of mobility. To overcome the chicken and egg conundrum we suggest five key focus areas:
1) We need increased investment in building an infrastructure footprint that actually supports alternative mobility solutions: The automotive industry, in partnership with government and other industry partners, must fuel the development and implementation of charging stations around the country.
2) We need a deliberate product road map matched to our infrastructure reality: Electrification won’t happen overnight, so we need to build a road map that accommodates hybrid vehicles and that can accommodate any future shifts to fully electric vehicles as and when new technology is phased in.
3) We need a policy environment that makes good sense and enables the product and infrastructure needs: Currently import duties on electric vehicles are high. Electric vehicles get charged a duty of around 25%, while conventional vehicle imports get charged 18%. Additionally, an ad valorem tax, which is usually charged on luxury items, is also applied to electric vehicles. So the tax on electric vehicle imports stands at about 42% in total. Government needs to look at this policy and reduce import taxes to make the future of mobility less expensive.
4) We need to increase the size of the pie. A clear and consistent growth plan creates a more stable business environment and more importantly, stabilizes the currency fluctuation impact on the Rand: Currently, the rand is the strongest it has been in two years. This is attributed to improvements in overall confidence because of increased political stability. However, what is concerning is the longevity of this stability and the resulting impact on the business environment.
5) We need to make sure that we bring our customers and Dealer partners on the journey with us: Education of customers and Dealer partners is key. If a consumer doesn’t understand what an electric vehicle is, they won’t buy it, even if they have the means. However, if they are educated about the positive impact such vehicles have on the environment, issues of versatility, power output and the technology behind it; then they are more likely to purchase the vehicle. We appreciate that any investment in alternative mobility solutions must be geared towards the end users of these solutions. What is important to understand is that consumers buy electric vehicles for different reasons. For some, it’s a lifestyle choice, wanting to drive green, clean mobility. While other consumers buy electric vehicles to make a statement. Given the environmental benefits, the latter group sees the technology representing cutting edge innovation and they want to be at forefront of this. Customers also need the assurance and the necessary education to dispel any belief that electric vehicles lose the credibility and lack the quality of existing internal combustion engines. Also, a key credibility factor for a more future forward mobility offering is the pace of infrastructure investment that our Dealer partners would need to embark on in order to undeniably accelerate the adoption of alternative mobility. As a direct importer, we need to invest time and effort to ensure that our Dealer partners are willing and able to move their businesses in this direction.
So the road map is clear. Electric mobility means merging the demands of sustainability, everyday usability and performance. This implies integrating current technologies to advance what are often still seen as concept vehicles to cater for consumers in the premium market. It does also mean that parallel investments in infrastructure are needed, especially if we are to cater for the anticipated leapfrog in product line-ups.
Globally, Audi has made significant investments in driving progress towards alternative mobility solutions. This has seen investments in both technology and human capital to make advances in areas such as e-fuel, battery life, range, speed, general performance and aesthetic design.
With this in mind, from 2025 all Audi models will have an electrified drive. We will be launching more than 20 electric cars and plug-in hybrids– spread across all segments and concepts. Over the long-term, Audi plans to set the trend for the premium market, aiming to leverage and combine all of its technologies to reduce the emissions figures and develop sustainable, intelligent electro-mobility concepts.
Driving progress around innovation is a key aspect of our own DNA. Audi has an impressive track record for integrating benchmark technology into our vehicles. However, before complete electrified vehicle fleets are built, we need to ensure that we get a buy-in from government to invest in electric vehicles by showing the economic, environmental and social upliftment that these vehicles will bring to South Africa.
Development is as dynamic as the automotive sector. Once we show the need to introduce electric vehicles into the premium market for those who can afford it, we can focus on developing other areas – recycling batteries; developing battery options with superior charging performance; investigating renewable energy sources such as wind and solar, just to name a few. The future is exciting and it’s more than evident that electric vehicles will benefit South Africans at large.
Two-thirds of adults ready for cars that drive themselves
The latest Looking Further with Ford Trends Report reveals that behaviour is changing across key areas of our lives
Self-driving cars are a hot topic today, but if you had to choose, would you rather your children ride in an autonomous vehicle or drive with a stranger? You may be surprised to learn that 67 per cent of adults globally would opt for the self-driving car.
That insight is one of many revealed in the 2019 Looking Further with Ford Trend Report, released last week. The report takes a deep look into the drivers of behavioural change, specifically uncovering the dynamic relationships consumers have with the shifting landscape of technology.
Change is not always easy, particularly when it is driven by forces beyond our control. In a global survey of 14 countries, Ford’s research revealed that 87 per cent of adults believe technology is the biggest driver of change. And while 79 per cent of adults maintain that technology is a force for good, there are large segments of the population that have significant concerns. Some are afraid of artificial intelligence (AI). Others fear the impact of technology on our emotional wellbeing.
“Individually and collectively, these behavioural changes can take us from feeling helpless to feeling empowered, and unleash a world of wonder, hope and progress,” says Kuda Takura, smart mobility specialist at Ford Motor Company of Southern Africa. “At Ford we are deeply focused on human-centric design and are committed to finding mobility solutions that help improve the lives of consumers and their communities. In the context of change, we have to protect what we consider most valuable – having a trusted relationship with our customers. So, we are always deliberate and thoughtful about how we navigate change.”
Key insights from Ford’s 7th annual Trends Report:
Almost half of people around the world believe that fear drives change
Seven in 10 say that they are energised by change
87 per cent agree that technology is the biggest driver of today’s change
Eight in 10 citizens believe that technology is a force for good
45 per cent of adults globally report that they envy people who can disconnect from their devices
Seven out of 10 consumers agree that we should have a mandatory time-out from our devices
Click here to read more about the seven trends for 2019.
At last, cars talk to traffic lights to catch ‘green wave’
By ANDRE HAINZLMAIER, head of development of apps, connected services and smart city at Audi.
Stop-and-go traffic in cities is annoying. By contrast, we are pleased when we have a “green wave” – but we catch them far too seldom, unfortunately. With the Traffic Light Information function, drivers are more in control. They drive more efficiently and are more relaxed because they know 250 meters ahead of a traffic light whether they will catch it on green. In the future, anonymized data from our cars can help to switch traffic lights in cities to better phases and to optimise the traffic flow.
In the USA, Audi customers have been using the “Time-to-Green” function for two years: if the driver will reach the lights on red, a countdown in the Audi virtual cockpit or head-up display counts the seconds to the next green phase. This service is now available at more than 5,000 intersections in the USA, for example in cities like Denver, Houston, Las Vegas, Los Angeles, Portland and Washington D.C. In the US capital alone, about 1,000 intersections are linked to the Traffic Light Information function.
Since February, Audi has offered a further function in North America. The purpose of this is especially to enable driving on the “green wave”. “Green Light Optimized Speed Advisory” (GLOSA) shows to the driver in the ideal speed for reaching the next traffic light on green.
Both Time-to-Green and GLOSA will be activated for the start of operation in Ingolstadt in selected Audi models. These include all Audi e-tron models and the A4, A6, A7, A8, Q3, Q7 and Q8 to be produced from mid-July (“model year 2020”). The prerequisite is the “Audi connect Navigation & Infotainment” package and the optional “camera-based traffic sign recognition”.
Why is this function becoming available in Europe two years later than in the USA?
The challenges for the serial introduction of the service are much greater here than, for example, in the USA, where urban traffic light systems were planned over a large area and uniformly. In Europe, by contrast, the traffic infrastructure has developed more locally and decentrally – with a great variety of traffic technology. How quickly other cities are connected to this technology depends above all on whether data standards and interfaces get established and cities digitalise their traffic lights.
On this project, Audi is working with Traffic Technology Services (TTS). TTS prepares the raw data from city traffic management centres and transmits them to the Audi servers. From here, the information reaches the car via a fast Internet connection.
Audi is working to offer Traffic Light Information in further cities in Germany, Europe, Canada and the USA in the coming years. In the large east Chinese city of Wuxi, Audi and partners are testing networks between cars and traffic light systems in the context of a development project.
In future, Audi customers may be able to benefit from additional functions, for example when “green waves” are incorporated into the ideal route planning. It is also conceivable that Audi e-tron models, when cruising up to a red traffic light, will make increased used of braking energy in order to charge their batteries. Coupled with predictive adaptive cruise control (pACC), the cars could even brake automatically at red lights.
In the long term, urban traffic will benefit. When cars send anonymised data to the city, for example, traffic signals could operate more flexibly. Every driver knows the following situation: in the evening you wait at a red light – while no other car is to be seen far and wide. Networked traffic lights would then react according to demand. Drivers of other automotive brands will also profit from the development work that Audi is carrying out with Traffic Light Information – good news for cities, which are dependent on the anonymised data of large fleets to achieve the most efficient traffic management.
In future, V2I technologies like Traffic Light Information will facilitate automated driving.
A city is one of the most complex environments for an autonomous car. Nevertheless, the vehicle has to be able to handle the situation, even in rain and snow. Data exchange with the traffic infrastructure can be highly relevant here.