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Why the future of the A-segment car is set to look very different

30 April 2019 Tim Urquhart, B.A.

[Excerpt]

A-segment city cars could undergo a radical transformation by becoming a key component of OEM and disruptor mobility strategies in the future. For years, conventional OEMs have struggled to make sufficient margins to justify the ongoing business case for affordable city cars despite the obvious appeal of small, low-cost passenger cars that are cheap to run and easy to drive and park.

Conventional A-segment cars as a rule do not make enough money for OEMs, but small city cars are also highly likely to make a central spoke of the future wider mobility offering, most likely in fully electric and autonomous form. So while it is difficult to make money on the vehicle type in the current market paradigm, future mobility technology in city centres means that there are opportunities going forward with the segment. But a future A-segment car may end up looking and feeling significantly different from the current market offerings.

Posted 30 April 2019 by Tim Urquhart, B.A., Principal Analyst, Automotive, IHS Markit


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