Yeswant Abhimanyu, Frost & Sullivan: Mobility evolution in Latin America

 

One company following the progression of this transformation is international consultancy firm Frost & Sullivan. Join Global Fleet in a brief talk with Yeswant Abhimanyu regarding some of mobility solutions and the overall outlook of the region.

 

He is the company’s LatAm research manager and principal consultant for automotive and digital transformation, as well as a member of the Global Fleet advisory board Latin America.

 

Global Fleet: Which countries does Frost & Sullivan most cover in Latin America and what is the mission of the company in the region in terms of mobility?

 

Abhimanyu: First of all, I'd like to say that Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses challenges and related growth opportunities on a global scale.

 

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.

 

In terms of Latin America, we have offices in Brazil, Argentina, Colombia, and Mexico, but cover the entire Latin America region. We are aimed at contributing to growth by way of thought leadership in the Automotive and Mobility space, as well as Fleet & Leasing.

 

Global Fleet: Could you briefly explain the evolution of mobility in Latin America?

 

Abhimanyu: Today urban mobility across numerous Latin American cities is at the helm of change, with increasing investments in traditional forms of mobility such as Buses, Subways/Metros and the accompanying infrastructure such as BRT lanes. All of this forms the backbone of seamless mobility within cities.

 

Cities are also moving towards encouraging sustainable forms of transport such as bicycling and walking which is leading to investments in bike lanes and redesigning of urban spaces.

 

Personal vehicle ownership is still the dominant trend and will continue for the short term, but new mobility business models embodying the sharing economy have been rapidly advancing in the last 3-5 years. In most cases, these are primarily complementing vehicle ownership, but signs of replacing ownership is selectively being witnessed among some demographics.

 

Global Fleet: What are some of the aspects of Latin America you see pushing new mobility solutions?

 

Abhimanyu: Some of the positive aspects pushing growth in the region's mobility sector are the speed of technological adoption, innovation coming from numerous start-ups, the agility to discuss and create solutions to challenges which includes a vision to offer flexible and integrated mass transit options.

 

Global Fleet: Could you point out some of the new mobility solutions occurring throughout the region?

 

Abhimanyu: E-hailing popularity is on the rise across larger Latin American cities and is expected to represent a market of over US$34bn by 2025.  Global Mergers and Partnerships in e-hailing business models involving Latin American companies is evidence of the promise in these solutions.

 

While this is pushed by rapid consumer interest and the search for competitive pricing and comfort, bike sharing is also on the rise but driven by interest from municipal governments.

Bike Sampa bike-sharing system in Sao Paulo, Brazil (Source: O Globo)

As for Carsharing, it has been present in LatAm for over five years, but only in the last year or so have we seen growth in fleet size, newer EV Carsharing solutions, and OEM pilots. Card-based integrated mobility solutions are also expected to grow, increasingly integrating more modalities beyond public buses, bike sharing and metros/subways.

 

Moreover, corporate mobility has been experiencing innovation lately with new business models bringing about changes such as mobility budgets, vehicle fleet leasing, and fleet outsourcing.

 

Global Fleet: Finally, which cities are more apt to adopting these solutions?

 

Abhimanyu: Across the region, some of the larger cities such as Sao Paulo, Rio de Janeiro, Mexico City and Buenos Aires are key regional benchmarks. In São Paulo, for example, the city facilitates and supports innovation by sponsoring events and workshops with start-ups and market disruptors.