Car subscriptions: Long-term trend or short-term hype

Car subscriptions: Long-term trend or short-term hype

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Although the strategy of car possession by way of subscription is
not totally new, considering the fact that it exists in particular vehicle leasing features,
new companies have designed it additional desirable to a broader team of
shoppers via app-based mostly mobility channels.

With the emergence of the COVID-19 pandemic, automobile subscription
solutions attained a whole lot of awareness in automotive and mainstream
media, more accelerating curiosity among buyers. The pandemic
has experienced a negative effect on general public transport and shared mobility
services, ensuing in a significant decrease in the range of rides. The
current market has been slowly recovering ever given that. This as a result led
to a renewed desire in cars, as very well as highlighting the
requirement and basic safety that vehicles provided to vehicle house owners and to
individuals with no cars.

While shared mobility channels have been recovering, auto
subscription products and services maintain on gaining in popularity. Is this trend
just a strong symptom of people staying away from other usually means of shared
or mass transportation as a precaution versus the virus, or is
this business design cannibalizing standard car ownership
products?

It seems that auto subscriptions are starting to make inroads
among youthful customer groups who are far more aligned with the thought
of subscriptions, suggesting that this has opportunity to develop into a
long run development. Our investigate highlights that auto subscriptions
undoubtedly have the opportunity to speed up a far more normal pattern in
the depletion of standard car possession to enhanced Mobility as
a Service (MaaS) channels.

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Posted 27 June 2022 by Mario Franjičević, Principal Analyst, Automotive New Mobility, S&P Global Mobility&#13
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This article was released by S&P Global Mobility and not by S&P World Scores, which is a independently managed division of S&P World wide.

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