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The global car subscription market
Globally, the car subscription model is growing fast, with Boston Consulting Group forecasting the market in Europe and the US could reach $30 billion to $40 billion by 2030 - up to 15% of new car sales - based on volume of 5 to 6 million subscription vehicles. Some forecasts predict this figure could be as high as 40% of new car sales by 2030 as early market indicators suggest an even more rapid uptake than expected, spurred by greater investment in the industry.
Most recently, Volkswagen Group - Europe’s largest automaker - has offered a massive US$3.4 billion takeover bid for global car rental giant Europcar, in a bid to accelerate its mobility services. Volkswagen Chief Executive Herbert Diess told Reuters, “The mobility market is changing rapidly as customers increasingly demand new and innovative on-demand mobility solutions, such as subscription and sharing models to complement car ownership.”
Other automakers are joining the movement, with RCI Bank and Services, the Renault Group’s automotive captive, acquiring Spanish car subscription provider Bipi for an estimated US$175 million, to expand its range of flexible all-inclusive products.
Finally, Volvo Cars’ subscription service has reported that subscription accounted for almost 15% of the brands new car retail business in its first year of business in the UK. This comfortably exceeded the initial 5% total targeted for the service at the end of its first year. Conor Horne, UK Head of Online Sales, said: “The results confirm that the Care by Volvo subscription service represents the future of our retail business and is helping bring new customers to our brand.”