The global automotive market looks as vibrant as ever. Car manufacturers around the world were able to sell more than 86 million units in 2018, including record numbers of electric models and sports vehicles, according to Gato research. In addition, according to Bloomberg, an estimated 1.3 billion cars are on the road today, the most in history. However, the space is not without challenges. For example, sales in vertical sectors in North America, Europe, the Middle East and Africa fell last year, Gato discovered. Many mobility trends force customers to rethink traditional car finance and leasing models and look for alternative options.
Ownership of private vehicles and public transport: these have been the only options consumers have enjoyed around the world for decades. However, this is no longer the case. A series of new alternatives have been achieved in recent years, and they now collectively threaten the historical control of automobile manufacturers over human movement. These include: The combined travel space matured significantly in 2019. Lyft and Uber, which together account for 98% of the total market share of the industry according to Second Measure, launched their initial public offerings in spring, signaling the formal transformation of the Silicon Valley scarcity sector into a legitimate industry. . vertical.
In the United States, more than a third of all adults benefit from Lyft, Uber and other commuting services, according to analysts at the Pew Research Center. This population of carriers is destined to travel in the coming years. Interest income has grown 130% annually since 2013, laying the groundwork for a fantastic $ 30 billion market, according to McKinsey & Co. However, today's shared travel services will not resemble tomorrow's services, the consultant predicted.
Several sector-specific developments are driving the development of common travel models 2.0 and 3.0, which will facilitate the delivery of broader services that address some demographic data of currently unattended drivers. For example, some buyers choose to use personal vehicles as a result of space restrictions associated with shared travel vehicles. Companies in the arena will have to address this problem in the coming years by applying space improvement measures and distributing standard car accessories to accommodate people with many elements.
The continued maturity of joint travel certainly threatens carmakers, dealers and other carmakers that have long relied on traditional car finance and leasing.
The subscription-based service model that customers pay for rather than ownership is widely adopted in many industries, from multimedia and IT spaces to e-commerce and education. In recent years, this unique sales model has taken root in the automotive industry, giving way to a new model for vehicle use called
The idea of selling access cars has been around for some time. Car rental companies benefit from this approach for decades, including ZipCar, which supports more than one million US customers renting cars on demand through the smartphone app.
While CaaS appears to have achieved the same goal as the leasing model, which is to give consumers access to temporary transportation, it facilitates more sophisticated and responsive services. It works as follows: The consumer uses the CaaS mobile portal to determine the vehicle and the corresponding subscription duration. They travel to a local local agent and pick up their car. After the expiration of the subscription period, they return the car, retrieve it or choose another car. This approach is simple and cost-effective, as consumers can subscribe to vehicles for only $ 400 per month, a price that includes insurance coverage, maintenance and roadside assistance.
Obviously, the emergence of Cars is disrupting the car finance and leasing model, putting pressure on carmakers and dealers who have long benefited from traditional transportation acquisition practices.
