Driving the Shift: SCANIA's Sustainable Transport Solution
Updated: May 25, 2019
Commercial vehicles are at the center of today’s individual convenience, yet, autos create both noise and air pollution, having a high negative impact on our society. This is not only a problem of CO2 emission but also one of energy security. Therefore, through the market ecology of the automobile industry it is necessary that the companies adjust their manufacturing business pattern.
Alternative energy and connected cars are being developed now. Attempts such as electric cars and self-driving vehicles. But the real root of the solution lies in creating new technological system and transportation servitization. These changes will contribute to novel business patterns and alter the way people utilize transportation.
The Drivers of a New Trend
First, we need to enhance efficiency with smart transportation systems. Secondly, a reduction in CO2 emission. Lastly improving energy efficiency through the use of clean alternative energy. The key obstacle is a lack of support from the governments. Companies that are not able to develop the necessary technologies and alternative energy circuit, will have no competitiveness in these markets.
Scania Vehicles - Synthetic Fuel and Biodiesel
Currently, Scania has vehicles fueled by synthetic fuel and biodiesel. Disposed crops is also an avenue that can be utilized to power vehicles. Tackling landfill problems through learning how to use waste as fuel for vehicles. Through this, Scania is opening the door to circular economy within the transport sector.
When the transportation industry collaborates with city governments, car manufacturers, electricity companies, water companies and waste treatment companies, they can develop a strong circular economy. When the price of gasoline soars, these alternative energies can be competitive. It may cost a lot of money to build related infrastructures in the short-term, but the long-term benefits are worth it.
If a country develops their own sustainable energy sector, they have the opportunity to keep profits for local markets instead of importing fuels from other countries. For example, for a period of 3 years, Scania’s vehicles construction in Stockholm have used 100% biofuel. Additionally, they have 16,000 electric buses under construction in Shenzhen.
This is a new challenge to companies, such as Scania. They are used to an outdated model but now they have the opportunity to be trailblazers within the transport industry. They have to change their models and their relationships with others in markets to achieve the goal of developing a new and sustainable transportation system.
*This is speech summary from the Link and Loop Conference which was edited and compiled by the Link and Loop team. It was written and reported with the best available knowledge from the talk. There may be information discrepancies. Please contact the speaker for clarifications.