According to study by KPMG, self-driving cars from ride hailing services could cut demand for sedans in US to half by 2030. The firm used cellphone data to map commuter travel in three large U.S. cities –namely Atlanta, Chicago, Los Angeles-San Diego– and came up with this conclusion.
The researchers have forecast that ride services using self-driving vehicles will launch first “island markets” i.e. in densely populated urban and suburban areas. The report says it will lead to a “precipitous decline” in the sales of sedans and reduce it to its half by 2030.
Several automakers have changed their strategy and are gradually shifting their focus from this segment. We have seen rise of companies like Uber, Lyft that have plans to launch autonomous taxis in future. Waymo has also announced that it will be entering ride sharing business soon. There was also a report recently that Volvo is supplying 24000 self driving cars to Uber. Automakers like GM, Ford, JLR, are also working in their own capacity and with the ride sharing companies on self-driving cars. Many other OEMs have also got plans to diversify their business and enter ride-hailing business.