Business

The Future of Cars in the Caribbean

Could Caribbean urban city centres prove to be effective test-beds for driverless vehicles?

[dropcap]A[/dropcap]round the world there is a quiet revolution underway. It may not be very visible at first but, on closer inspection, it’s obvious. The way in which we live is set to fundamentally change, and at the centre of this is cars.  Sure, cars have done this trick before. In 1908 a Detroit car factory rolled the first Model T off the assembly line, and with it Henry Ford ushered in a piece of tech that would forever change how we live and work. The horse cart was done away with, employees could live further from work and still commute quickly, and cars themselves became big business as pop culture icons.

Now in our century, sweeping change is imminent once more. And in the era of digital globalisation, the shift will be seen locally and internationally.

So what is the future of the automobile? And what will change about life in the Caribbean with the next generation of cars? Let’s look at this in-depth now.

GETTING INTO GEAR

The starting point for this next era of cars has its seeds already sown. In recent years the advances in car manufacturing, and the release of many new models, have established the foundation for the automobile’s future.

We have seen the successful creation and release to global markets of hybrid cars like the Toyota Prius. We’ve had Elon Musk release a range of Tesla electric cars to market, and cut down the old outdated idea that sustainable cars can’t also be stylish and glamorous.

Then there has been the progress of self-driving cars (SDCs). Though a widespread commercial release is still a while away, car fans look to owning an SDC not as a matter of if, but when. Hybrids, electrics, and SDCs. Yes, the change in this era of cars is rapid and diverse but it’s not just confined to the type of vehicles we have.

The way in which we use cars is changing too. Uber has revolutionized the world of taxi transport. Online shopping and the growth of remote work means we no longer need to use our cars as much as we once did. And the emphasis upon healthier living and green transport has seen many people around the world actively seek out a healthier and greener way to get around when they can, deciding to not use their car even when they could.

THE ROAD AHEAD

The future of cars in the Caribbean will also be informed by the changes being seen beyond our personal use of automobiles. Our global economy is set to see a surge in the growth of digital, AI, and automation industries. Everybody recognises that a huge rise in Amazon and Shopify sales could shrink profits in local bricks and mortar businesses but what about beyond the storefront?

The evolution of our global economy will have an impact along the supply chain. Demand for delivery drivers could soon shrink. So too warehouse packers and supervisors as automation grows. Conversely, while traditional jobs in these areas may diminish, new jobs will be created, requiring technicians to maintain technology, and ensure the supply chain runs smoothly. The core takeaway here is that the car’s future won’t be linear but will bring opportunities and challenges simultaneously.

This is a global phenomenon, but one that can be seen locally. Hyper-locally in fact. Your local mechanic may be an expert with 30 years’ experience in the trade but the growing digitisation and electronic construction of our car means ongoing training and keeping pace with new auto technology is no longer optional; it’s essential.

However you look at it, all this ongoing training – and the complexity of it! –  can be a real burden for a sole trader or a small business, especially when the greater adoption of electric cars could actually mean less business overall for your local mechanic. There will be less regular maintenance: no more oil changes as required by petrol-powered vehicles.  And fixing a major problem with an electric vehicle may ultimately entail shipment back to the factory for a total overhaul.

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This forecast appears confronting in some ways but within this new era is also the potential for growth in the car industry. And the Caribbean is well-positioned to capitalize on it.

For all the changes ahead, cars will remain a style and status symbol.

 

START YOUR ENGINES

The Caribbean is a great testing ground for new SDCs and electric vehicles. While the populations of its cities and nations compare favourably with many others around the world – the city of Havana, Cuba is four times as big as the city of Dublin, Ireland – geographically they are often smaller in size, with lower density in cities.

This allows for car tests in a live environment but without the headaches that can come with trials in a major metropolis like Los Angeles, Tokyo, or London. This also offers smaller roads, and shorter distances in driving from one major amenity to the next.

Beyond this, the Caribbean also has a compelling selling point: sunshine. If the future of cars is to be green and sustainable, the capacity to recharge cars via solar power will be important. And because many nations across the region have a diversity of urban and rural areas, and have a tourism industry which requires constant transportation of locals and visitors, there is ample support locally for the emergence of easier, optimised,  environmentally-friendly transport‚ all underpinned by solar as an energy source.

It’s here that the natural advantages of our region are especially big, and build on an enduring theme for regional business in future. The natural beauty and culture of the Caribbean region are not only points of pride locally but are real foundations on which future economic growth can be built.

TAKING THE WHEEL

For all the changes ahead, cars will remain a style and status symbol. The technology of electric cars and SDCs is commendable but critics have noted a problem of ‘sameness’ across them. With the possible exception of the Tesla vehicles, how many cars can John or Joan citizen identify as distinctively electric and stylish?

A Caribbean city may not have the capacity to rival Detroit or Tokyo in car manufacturing but, given the region’s existing appeal as a tourism destination, melting pot of arts and culture, and its close proximity to major manufacturers in the USA, Mexico, and South America, the potential to position the region as a ‘one-stop shop’ for after-market modification is considerable.

Anticipation of new industries will be the key to reaping economic benefits from the auto sector. There is growing advocacy among car and interior design fans alike for a reimagination of cars like the SDC, not only as vehicles but as ‘add-ons’ to our existing living spaces. The SDC of the future could serve as a space to sit, relax, watch TV and charge devices, whether on the road or at home.

With growing global urbanisation seeing more people than ever moving to live in cities, the concept of cars as living spaces is a cornerstone in a wider debate about their future‚ and the use of existing space in new ways. One that, like all trends in this field, we will continue to follow with interest and report on at The STAR Businessweek.

Ed Kennedy

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