By Michael Entner-Gómez | Digital Transformation Officer | Entner Consulting Group, LLC.
Will there ever be a $10 G-Wagon?
As the chatter about ICE vehicles being worth pennies on the dollar in a few years continues to permeate social media, I found myself daydreaming about stumbling upon a Mercedes-Benz AG G-Wagon priced at just $10. But let's be real - that's not happening anytime soon.
💡 ICE Vehicles: Holding Their Ground
The automotive landscape is indeed shifting towards electric vehicles (EVs), but ICE vehicles like the G-Wagon aren't becoming obsolete overnight. Their enduring value is supported by several factors. In areas where EV infrastructure is still nascent, ICE vehicles continue to be in demand. Many consumers prefer them for their range, quick refueling, and familiarity. Moreover, certain ICE models, especially luxury cars and collectibles, aren't just losing value; they're sometimes appreciating. They embody more than transport - they're icons of status and automotive history.
🔋 The Gradual Transition to EVs
The shift to electric mobility is a gradual process. EV infrastructure and manufacturing are scaling up, but technological advancements and economic factors are crucial in this transition. Until EVs become more accessible and practical for the average consumer, ICE vehicles will maintain their relevance.
🌍 Diverse Regulatory Landscapes
The rate of this transition varies globally, influenced significantly by regulatory policies. Some regions are aggressively pushing EVs, while others continue to depend on ICE vehicles, creating diverse market dynamics. Furthermore, in less affluent regions, used ICE vehicles often remain the more financially feasible option due to their lower cost and widespread serviceability.
🚗 Global Dynamics and Vintage Appeal
Globally, we're seeing intriguing trends, such as the export of used ICE vehicles to developing countries, where the lack of EV infrastructure makes them more attractive. In a fascinating twist, vintage models like Toyota FJs are being imported into the USA from Latin America at premium prices.
✨ The Enduring Allure of Luxury and Collectible ICE Vehicles
As we navigate towards an electrified future, the idea that ICE vehicles will rapidly lose their value is a misinterpretation. Luxury and collectible ICE vehicles, in particular, may even see an increase in value. The journey to a fully electric future is complex and will continue to see ICE vehicles playing a significant role across different global market segments.
So, if you happen to spot that elusive $10 G-Wagon in the coming decade, do give me a shout 😂.