In the latest Vehicle Subscription Utilisation Index, Loopit has seen new EV models making their entry, a testament to growing consumer interest in leveraging car subscription as a way to trial the suitability of EV for their lifestyle.
This follows recent partnerships with EV subscription providers Motor in the United States and CarBon in Australia. Newly introduced models include the Tesla Model X, Volkswagen ID.4, Chevrolet Bolt EV, and Ford Mustang Mach-E.
The addition of these EV models is predicted to increase, even across different segments including commercial vehicles such as new commercial EV models such the 2023 LDV eT60. This is largely due to the recent fringe benefits tax exemption and the influx of new EV models entering the Australian market. These factors signal a shift in the vehicle subscription market towards electric mobility, a trend likely to accelerate as more governments and corporations adopt eco-friendly policies.
This is a positive sign for the overall market as preceding months saw supply unable to keep up with the growing demand for EVs. The entry of these new models should help to balance out the market, and perhaps even stimulate more interest in EV subscriptions especially as more providers include these vehicles into their fleet and in turn provide more cost-effective offerings to the market.
Despite the new wave of electric vehicles, the report shows that luxury vehicle subscriptions continue to hold a significant place in the market. In fact, the luxury vehicle class continues to have the longest subscription duration, averaging 236 days across the top 10 luxury vehicles. This suggests a robust demand for luxury vehicles, with consumers favouring long-term subscriptions for these models.
The Isuzu D-MAX also cracked into the top 10 subscribed vehicles by model list - demonstrating the business case for car subscription.
About the Loopit VSU Index Methodology
The VSU Index measures vehicle utilisation on subscription rather than individual vehicle volume. Due to the inherent flexible nature of car subscription, vehicle utilisation is measured by considering the cumulative number of days in which any given vehicle is utilised within an active subscription during the monthly reporting period. In this way, we equally consider utilisation for individual vehicles being utilised across multiple subscribers, as well as individual vehicles that remain with the same subscriber for longer periods.