Beyond regulation: staying ahead of the pack
The leading provider of global automotive data and insight, JATO Dynamics, has launched a pressing initiative in an attempt to focus the industry on the urgency of WLTP adoption. This campaign begins with the publication of a white paper advising automotive players to embrace WLTP measures, or risk falling behind the pack.
The Beyond Regulation: Staying ahead of the pack report, comes in light of growing global climate concerns and a post-Covid-19 world, contemplating the new and unfamiliar landscape that will likely see different consumer habits and priorities.
The report found that the shift to WLTP – employed to ensure manufacturers’ new sales-weighted fleet does not produce more emissions than 95g of CO2 per kilometre – is facing a number of complexities. Barriers include:
- Differing WLTP policies created by individual legislators are subject to repeals and amendments. Any alterations to WLTP policies impact a market’s bottom line, and automotive players need to be reactive to shifts in policy.
- There is a large volume of work required to guarantee correct WLTP calculations. On average, there are 15 to 20 steps before a manufacturer can release reliable WLTP data.
- Consumer preferences, via add-on and design options, will likely have a significant effect on WLTP ratings. Vehicles that are personalised beyond market specification, will require new WLTP calculations.
Olivier Pejis, Head of European Sales Leasing at JATO Dynamics, commented: “For many years the industry has treated WLTP as a challenge which could be pushed forward, to be dealt with later. But in doing so we may have failed to realise that WLTP reflects a mounting sentiment shared by both consumers, industry and legislators as they favour green solutions. Now is the moment for the industry to embrace WLTP or risk falling behind the pack.”
The report also outlines the likely evolution of the automotive sector, once WLTP policies are fully operational. These include:
- Providing customers with numerous options for add-ons and design amendments will become increasingly difficult, any many OEMs will reduce the options available to ensure fewer WLTP variables.
- WLTP requires detailed information for its measurements and there has been a large improvement in transparency and data sharing across the industry, this will likely strengthen over time.
- There will be a greater shift towards e-commerce and digitisation, prompted by WLTP and remote working, as many consumers now search for pain-free online purchases.
- European car registrations increased by 5.2% in November, as SUVs posted record market share
- Knock-on effects of WLTP sinks European car market during September and causes major shakeup in the industry rankings
- PSA-Opel lost market share, as European car registrations increased by 1.2% in February 2017
- European Car Registrations returned to Positive Growth with a 9.3% Increase in August 2016
- All the Big 5 European Markets experienced growth, as SUV’s continued to dominate in April