Long-term sales growth for OEMs and rental car companies is being seriously threatened by younger generations’ shift away from car ownership and toward access to rides, according to Martyn Briggs, an automotive industry analyst for BofA Merrill Lynch Global Research.
“We forecast 130 million vehicles being used in mobility services by 2030, representing 8% of the global vehicles parc — the total number of vehicles on the road — and up from 2% in 2016, with 49 million of these in the ridehailing and carsharing sector. Those numbers might not seem staggering, but consider this: One carsharing vehicle can remove up to 25 privately owned vehicles from the road, and one ridehailing vehicle can reduce up to ten.
“This poses a big problem for car brands, and it’s keeping the auto industry up at night. The question now is, how can OEMs capture revenue from each mile a [vehicle] moves?”
Read the article at Bank of America Merrill Lynch