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What Experts Think About the Indian Shared Mobility Space?

A report says, while vehicle sales growth was at 3–4% CAGR during 2015–2020, the growth rate is expected to lower by 2030, one of the key reasons will be commuters looking to share a vehicle than owning one.

AutomotiveA transportation model where commuters share any kind of vehicle with other people is known as shared mobility. In the last few years, the trend of sharing cabs or auto has been booming in India. Ola and Uber are a few of them which made it possible by providing carpooling at reasonable rates. Now, the options of sharing auto or bikes are also available in the market. The automotive industry has changed at a bigger level in the last few years. In fact, the selling of vehicles is a bit slow due to shared mobility.  A report says, while vehicle sales growth was at 3–4% CAGR during 2015–2020, the growth rate is expected to lower by 2030, one of the key reasons will be commuters looking to share a vehicle than owning one. Bringing alongside Sasidhar Nandigam, Co-founder & CEO, CredR, Ankit Kumar, CEO, GOzero Mobility and Sushant Kumar, CEO & MD, AMO Mobility Solutions to further understand the future aspects of Shared Mobility in India

Shared-mobilityShared Mobility in Indian Market

While emphasizing the growth of shared mobility in the Indian market, Ankit says, before the coronavirus outbreak, many shared mobility start-ups were preparing for new market offerings and planning to expand their services. The sector, especially micro-mobility, had enticed a lot of entrepreneurial and user interests, even in tier 2 and tier 3 cities. Moreover, in recent years, it has received great support from public policies and structures to make its penetration even in towns.

Whereas, Sasidhar feel that the Indian mobility sector always needed a change as Indian commuters today face issues like rising pollution levels, traffic congestions in urban areas, parking shortages, last mile connectivity and increasing fuel prices. Additionally, there is a subtle shift in vehicle ownership trends as millennials move towards shared transport and pre-owned cars rather than investing in personal vehicles.

Sushant shares, with the exceptional success of Yulu bikes, there is a greater potential for acceptance and a shift to shared mobility. In fact, more firms are lining up their investments to ensure greater diversity in shared mobility in India. Moreover, the whooping success of shared mobility services like Ola and Uber, amongst others, have introduced the novel concept amongst the Indian population at a massive scale. Moreover, it has even reduced the presence of personal vehicles. This has significantly improved the value of shared mobility across the country.

The growth of Shared mobility in India

The future outlook for shared mobility services remains strongly positive. In the long-term, services will expand and strengthen in tier-3 cities. Due to their ease of availability and convenience, there will be high customer acceptance for emerging business models in India by 2025, such as ride-sharing, vehicle subscription, and bike-sharing, shares Ankit.

The Indian shared mobility market was valued at $1,025.8 million in 2019 and is expected to grow at a CAGR of 56.8% during the forecast period (2020–2025). Cost-effective and convenient mobility offered by shared mobility service providers is the prime factor supporting the growth of the market. Moreover, additional expenses, such as fuel, maintenance, insurance, and parking, are taken care of by the providers, which reduces the overall burden on consumers, he adds.

Coronavirus has made each business into loss and shared mobility has equally faced the heat. Sasidhar says that the years 2020-21 has not been great for shared mobility because of the lockdown and post unlock, people have been cautiously avoiding shared mobility due to the fear of contamination or exposure to the covid19 virus. The same trend will persist in 2022 but there is definitely hope for recovery as vaccination has been on an upswing in India and people are slowly and steadily returning to shared mobility options.

Automation-carThe shared mobility is gradually picking its pace across the country. Currently, we have a greater number of ride-hailing and vehicle rental companies that use e-mobility. Over the last few years, the revenue for many automobile brands and manufacturers has significantly declined. Personal vehicles have seen a consistent drop. When we look ahead, a larger number of customers are expected to shift towards shared and sustainable commuting. As more individuals and companies adopt environmentally conscious lifestyles, it is expected that the corporate giants, including Edtech, IT, and transport companies, will adopt shared mobility for commuting within their campus.  As an increasingly popular concept and lifestyle choice, shared mobility is expected to grow by 55% in the coming years. It is without a doubt a sizable figure and showcases how shared mobility is pioneering the automotive industry in India, mentions Sushant.

Latest Trends

Sasidhar feels that the year 2022 will see a rise in the following trends in Indian shared mobility:

  • Growth in the Rental Car Market – Prioritising safety, people are shying away from using public transport. Because of this, self-drive and rental car companies are seeing a sharp jump in enquiries and subscriptions.
  • Start of the Electric Era – Mobility service providers were among the worst-hit amid the COVID-19 outbreak. But now, as the situation is improving, companies in the segment are aiming to accelerate some of their larger plans and take the green route. Mobility companies are expecting a strong recovery in electric vehicle segments and doubling down their efforts.
  • Rising Demand for Used Cars – Post lockdown, more and more people are avoiding public transport, preferring to commute by their own vehicles. This changed behaviour has increased the demand for affordable and high-quality pre-owned vehicles. Especially among the Millennials, the demand for pre-owned cars is growing in India.

Ankit says that it is a mixed market currently with both personal mobility and shared mobility having its pros and cons. We see shared mobility being a primary choice of Tourist & B 2 B applications. As a post COVID Scenario, tourism in the country is expanding rapidly and so we see the shared mobility/ rental of E-Bikes to be the next thing in the market.

Future Plans

We are soon going to begin our nation vide campaign which would create a big market for E-Bikes. This will also let people decide and choose the right form of commute vehicle details of the same will be out in the first week of January, shares Ankit.

In the coming years, we are working on expanding our production facilities, thereby providing cutting-edge products and reducing the cost of electric vehicles. In addition to this, our team of battery and energy efficiency experts is relentlessly working to bring new energy sources for our electric scooters, electric bikes, and other products. While our major focus is on improving customer experience with low-cost mobility, says Sushant.

Indian shared mobility is going to witness a massive 56.8% CAGR between 2020 and 2025. At this rate, the revenue generated from the provision of such services across the country is expected to increase from $1,025.8 million in 2019 to $3,952.8 million by 2025, a report says. So, the shared mobility industry in India is going to see remarkable growth.

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Nitisha Dubey

I am a Journalist with a post graduate degree in Journalism & Mass Communication. I love reading non-fiction books, exploring different destinations and varieties of cuisines. Biographies and historical movies are few favourites.

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