Car Subscriptions: Revolutionizing Vehicle Ownership in the Digital Age

1.     +1 217 636 3356 +44 20 3289 9440 sales@mobilityforesights.com    Your Name Business Email Global Car Subscription Market 2024- 2030 Country Phone Number +33 Company Name Single User License : $ 3,500 Your message Corporate User License : $ 6,000 2024 Update Coming Soon By submitting this form, you are agreeing to the Terms of Use and Privacy Policy.  Request Sample I'm not a robot reCAPTCHA Privacy - Terms BUY NOW DOWNLOAD SAMPLE DESCRIPTION TABLE OF CONTENTS CAR SUBSCRIPTION MARKET KEY FINDINGS The target demographic for this market will be 25-35 year olds, particularly new families across all regions. The geographical target areas differ across regions based on a variety of factors such as median income, income of people, access to public transportation, and facilities associated with driving a personal vehicle such as parking, and others. The demand for personal transportation is increasing while affordability is decreasing, paving the way for subscription services that will provide both personal transportation and affordable transportation. Premium vehicle subscriptions may have an advantage over short-term subscriptions because long-term deals are not a concern and extra charges such as taxes and service are covered. The status symbol associated with a car is losing relevance with a vehicle being looked into as a platform to reach from point A to point B. The used car market has a lot to offer because it can collaborate with fleet operators and car subscription service providers to use the fleet they have. The ability of an OEM to handle the manufacturing process as well as forecast demand for models and variants will be critical, as will their partnership with service providers and banks in terms of handling revenue. OEMs are actively incorporating technologically advanced systems including vehicle access and reservation systems in their vehicles to gain prominence in the car subscription market. In 2021, Volvo’s car subscription service, Care by Volvo delivered 2,500 cars to customers in its first year, accounting for 15% of all its UK retail sales In January 2022, US based car subscription start-up GO has expanded its service into four new markets Atlanta, Dallas, Houston and Charlotte in US Volvo announced the launch of its car subscription model to roll out in India. Porsche added its first electric car to be used on subscription, the Taycan sports sedan in the US. BMW announced to end its subscription services from Nashville making the company the latest automaker to rescind its services. Audi has also announced the end of its subscription services after a run of two years. Cazoo acquired the rental car service provider Drover to expand and enter the car subscription market across Europe. The company also acquired Cluno, an independent leading flexible car subscription service provider based in Germany. INTRODUCTION Car subscriptions started making headlines in 2017 and by Q2-2018 end gathered full momentum. As of Dec 2020,more than 20 OEMs are offering or about to offer vehicles by subscription around the world. With the rise of Mobility-as-a-service, auto manufacturers are now increasingly trying car subscription services in small volumes to test consumer adoption in various regions. Before, we discuss about the car subscription market, lets discuss what could be the potential reason for OEMs to get into or not get into this business model. To know more about Global Electric Car Rental Market, read our report Pros 1. Premium brands (Ex Porsche, Cadillac, Audi etc) can get a new set of young customers, who were otherwise intimidated by high sticker price and who would have probably bought a vehicle of that segment later in their life. 2. Customers can switch models within the same brand after their subscription period is over 3. People who stay at a place for short durations (1-6 months) can get a personal vehicle with all features covered 4. COVID brought about a need for personalized vehicle especially in areas where public transport was primary source of transportation 5. A blanket payment which covers service, insurance, and taxes are preferred among individuals new to the job market and new families as they won’t have to spend a lot upfront for a personalized vehicle Cons 1. The pilot initiatives are limited to certain regions and a handful of countries only. The small sample size may not give true picture of consumer adoption worldwide 2. Most of the car subscriptions are expensive (2X-3X of monthly lease amount for same car) 3. At the end of the tenure, the vehicle doesn’t belong to the user thereby making it inefficient for long term usage and tenures 4. The condition of a vehicle cannot be predicted due to wide user base thereby causing concerns among users 5. Lack of customization choices for users will also be a turndown Getting a vehicle via subscription is more about convenience (reserved through app), flexibility (multiple short-term plans) that comes with low financial liability. CAR SUBSCRIPTION MARKET SEGMENTATION To know more about Self-Drive Car Rental Market In India, read our report CAR SUBSCRIPTION MARKET DYNAMICS SI No Timeline Company Developments Maruti Suzuki, Indias largest four-wheeler manufacturer has partnered with Quiklyz by 1 Feb 2022 Quikyz Mahindra Finance for its Subscribe program. With this partnership, the Maruti Suzuki subscription platform will be strengthened Volkswagen Passenger Cars India has announced a subscription-based car ownership model, in 2 2021 Orix association with Orix. The brand had introduced the Power Lease program in association with Orix Online marketplace FlexClub is now allowing clients to hire automobiles from Avis Fleet, the 3 Feb 2022 Avis Fleet leasing arm of Avis Budget Group, for a reduced price on longer-term subscriptions. SI no Timeline Company Developments The Europe’s leading car retailer Cazoo has 1 December 2021 Cazoo further expanded its service in France and in Germany. Nissan has partnered with Zoomcars and Orix 2 November 2021 Nissan in order to offer Nissan and Datsun cars under subscription. Uber and Hertz have been partnered in order 3 October 2021 Hertz to add up 50,000 Teslas available by 2023 when using Uber Network. Enterprise has been partnered with Microsoft in order to bring connected car technology in Enterprise Car 4 September 2021 Enterprise Car rental, exotic vehicles and Club commercial truck rental fleets in the US and soon in the UK and Canada. Enterprise Car Club and West Berkshire Council have been partnered to bring new Enterprise Car 5 September 2021 transport service in Newbury. New Electric Club and hybrid vehicles are set at five locations in Newbury and available at low cost per hour. In order to save customers time and money in buying the online cars, Hertz and Carvana 6 October 2021 Hertz have partnered to utilize Caravan’s online transaction technology and its network to expand vehicle channels. Revv, a Delhi-based shared mobility platform, has announced a new initiative called SWITCH, which allows customers to subscribe to a curated fleet of cars on a month-by-month or year-by-year basis. Revv says that this is Asia’s first multi-brand car subscription platform, and that it is attempting to re- imagine the century-old tradition of car ownership. Revv received Series A funding from Edelweiss Private Equity and has since expanded its regional reach to include Mumbai, Pune, Chennai, Jaipur, and Vishakapatnam. The mainstream adoption of shared mobility will increasingly rely on an ecosystem of services coming together to meet the full set of needs of someone who wishes to switch to a shared mobility lifestyle rather than traditional car ownership. While cabs and hourly self-drive rentals have progressively well-served various use-cases, there is a significant vacuum in services dedicated to longer-term mobility. TOP 10 SUBSCRIBED CAR MODEL IN UK – 2021 SL NO OEM MODEL 1 Volkswagen Golf 2 Tesla Model 3 3 Renault ZOE 4 Hyundai Ioniq 5 Volkswagen ID.3 6 Vauxhall Corsa 7 Jaguar Land Rover Range Rover 8 Fiat 500 9 Volkswagen Tiguan 10 Nissan Leaf OEMS OFFERING OR ABOUT TO OFFER CAR SUBSCRIPTION- AUG 2021 SL SUBSCRIPTION OEM REGION NO PARTNER Polestar space 1 Polestar (low cost, high tech retail US and Canada outlet) 2 Porsche Clutch Technologies US and Canada (Upcoming) 3 Audi Group 1 Automotive, Sixt Europe US,Switzerland (upcoming)and Germany 4 Cadillac Select dealers (upcoming)) 5 Volvo Select dealers US and UK Hyundai, Revv(India), Select 6 US, South Korea and India Genesis dealers 7 Volkswagen Zoomcar,Drover(UK) India and UK 8 Nissan Zoomcar India Mahindra & 9 Zoomcar India Mahindra MG Motors 10 Myles India (SAIC) 11 Renault Zoomcar, Drover India,UK Jaguar Land 12 Inmotion Ventures UK Rover 13 Lexus Select dealers US 14 Toyota Kinto, Myles India 15 Ford & Lincoln Canvas US 16 Jeep Select dealers US Wagonex, Hellocars and 17 PSA UK,Australia Drover 18 Kia Motors Select dealers Hellocars South Korea, Australia Orix, Myles, ALD 19 Maruti Suzuki India Automotive 20 Tata Motors Orix India COVID-19 IMPACT ON CAR SUBSCRIPTION MARKET As we all know by now that COVID-19 has severely impacted all markets and industries worldwide, and the car Industry declined in Q1-2020 at an extremely rapid pace. Auto sales could decline by as much as ~20% for full year 2020. That is a grave challenge for the century old car ownership-based business model. But, what will that mean for the car subscription market? We look at multiple scenarios below Scenario 1: Certain urban consumers who were earlier used to Mobility as a Service or Public transport and come out of this pandemic, relatively unaffected financially could be the new customers of car subscription as now public transport will operate with reduced capacity and increased fear of usage Scenario 2: Car OEMs start offering 0% finance in developed markets (US and Europe) with 84- month lease payments as a norm. If car subscription companies could bring down the subscription prices in a comparable range of monthly lease payments then they have a real chance of wooing a customer who is not interested in more than a yearlong commitment of paying monthly lease. Scenario 3: Car rental operators could introduce car subscription at a reasonable rate to compensate the reduced bookings to improve their cashflow Scenario 4: People new to the job market and recently employed looking for a new vehicle will opt for subscription to avoid breaking the bank for their first vehicle CAR SUBSCRIPTION MARKET SIZE AND FORECAST As of Dec 2020, US, UK, Australia and India appear to be the focal points of car subscription. Among the four countries mentioned above, India’s inclusion would surprise all Industry stakeholders because India`s car ownership is amongst world`s lowest at ~22 cars per 1,000 inhabitants. But India is also a very young country and very high traffic congestion in all 8 tier-1 cities in India has made car ownership a liability who just want to get from point A to point B without associated driver fatigue. In US, 80-85% of vehicles are either bought on finance/lease, which typically includes an average down payment of $3,000-$5,000 and a monthly payment of $400-$700.This might seem ok to people from earlier generation where car ownership was the only option but the millennials , many of whom are burdened with student loans find it a strain on their finances and thus could prefer the subscription model. The future of car subscription market will also be impacted by the arrival of L3/L4 automated vehicles, consumers who need this kind of service, are typically not very keen on driving themselves and want maximum convenience with low financial liability. CAR SUBSCRIPTION MARKET TRENDS SI Timeline Company Developments no Genesis has launched a subscription service called Genesis Flexibility February 1 Genesis in the UK. Starting from £599 a month with a minimum six-month term, 2022 Genesis Flexibility covers all cars in the premium luxury brand line-up. Tesla has enabled in-car purchases and subscription through its latest December 2 Tesla round of software updates, giving the chance to give more money for 2021 more things like Premium Subscription and more. Mahindra Finance has launched the vehicle leasing and subscription November Mahindra 3 service known as “Quiklyz” in order to make car purchase easier and 2021 Finance simple. Stellantis is expanding its all-inclusive Free2Move Car On Demand October monthly car subscription service to the UK. Free2Move was already 4 Stellantis 2021 available in Washington DC and Los Angeles as well as in France, Spain and Portugal Europcar has launched a new vehicle subscription service called Duo October Flex service offering cars including electric cars, vans and offers a one 5 Europcar 2021 month minimum contract, with no penalty clause beyond the initial month’s rental. Hyundai Motor UK has launched a new Mocean all-inclusive vehicle August Hyundai 6 subscription model offering motorists a fully taxed, insured and 2021 Motor maintained car for a single monthly payment. Enterprise Car Club has introduced eight new low-emission hybrid August Enterprise electric cars in the Highlands and Islands of Scotland. So, people are 7 2021 Car Club able to book using the new and ground-breaking GO-HI journey planning app. Enterprise Car Club has been ranked as the largest fleet management Enterprise provider in the US. In 2020 the fleet experienced 4% growth and 8 July 2021 Car Club continues to expand its portfolio and achieved a recent milestone of 500,000 vehicles on lease. At Malta’s International Airport,Enterprise Car Club has opened its first Enterprise branch of vehicle leasing and rental business. The branch will allow 9 July 2021 Car Club EHI’s three rental businesses- Enterprise Rent-A-Car, National Car rental and Alamo Rent A Car. At the start of July 1 2021, customers who join the award winning 10 July 2021 Hertz Hertz Gold Plus Rewards loyalty program will automatically get upgraded to Five star elite status for the remainder of the year. Enterprise Car Club has announced that they had completed the roll February Enterprise out of Accelerated Customer Experience(ACE) digital platform. This 11 2021 Car Club will allow the ECC customers to purchase the used cars easily from their home or at any Enterprise Car Sales in US locations. Some companies which provide car subscription services such as Drover Limited, OpenRoad Auto Group, Facedrive Inc, Porsche AG and Fair Financial Corp. have introduced websites as well as applications for mobile phones for customers to avail the services through digital platforms. In July 2021, IMOVE, a company based in Norway was founded in 2018 and it closed a funding round raising $22.3 million in series A. The round was led by pan-European online car market AutoScout24 with VCs Norselab and Idekapital. The company is set to expand its automotive subscription service in Europe. In June 2020, Volvo announced the launch of its car subscription model to roll out in India. In March 2021, Porsche added its first electric car to be used on subscription, the Taycan sports sedan in the US. The company is also expanding its subscription and rental programs to five more cities. In February 2021, the company Maruti Suzuki partnered with ALD Automotive India for the car subscription service. In January 2021, BMW announced to end its subscription services from Nashville making the company the latest automaker to rescind its services. January 2021, the automaker Audi has also announced the end of its subscription services after a run of two years due to low demand. In October 2020, Toyota Motors joined hands with Myles Automotive Technologies in an attempt to expand its car subscription service in the cities of Mumbai, Delhi and Bengaluru. August 2020, MG Motors has announced partnership with Zoomcar for vehicle subscription services and also to provide 24×7 support to their customer base. July 2020, Jaguar Land Rover announced the launch of a premium car subscription service Pivotal where both Jaguar as well as Land Rover cars – Land Rover Discovery and Range Rover Sport will be available for subscription. July 2020, Mercedes Benz USA has also announced to end its subscription service protocol from the cities of Nashville, Atlanta and Philadelphia due to low level of demand. In the early months of 2020, Hyundai Motors launched the subscription based business model in India. The model operates in across six cities with partnership with the company Revv. CAR SUBSCRIPTION MARKET RECENT LAUNCH GO, a pioneering car subscription service, has announced the entrance of four new markets. GO is now available in eight major American cities. Philadelphia, Northern New Jersey, Miami, Orlando, Atlanta, Dallas, Houston, and Charlotte are among these cities. Unlike traditional auto leasing and finance, GO’s approach provides customers with a straightforward and economical way to buy a car. Customers in eligible areas can order their car totally online in under 5 minutes and save up to 25% per month using the service. There is no deposit required, and there are no hidden costs. The entire procedure is carried out virtually, with no need to visit a physical site. In most situations, cars are delivered free of charge to the customer’s home. Unlike prior car subscriptions that focused on exchanging vehicles and short-term use, GO is the first startup to offer a car subscription service intended particularly toward daily drivers. GO’s revolutionary approach provides evolution to the industry and represents a new paradigm for car shopping, with substantial advantages over the traditional car buying procedure. Due to its ease and flexibility, car subscription services have grown in popularity in recent years. Users of these services can access a car for a monthly fee without having to buy or lease it. It’s a fantastic alternative for people who need a car temporarily or don’t want to commit to a long-term lease or purchase. With the introduction of new services, car subscription services are now much more available. These services provide a wide range of features and advantages, making it simpler for consumers to locate the ideal vehicle for their requirements. SIXT+ is yet another brand-new auto subscription service. This service offers a variety of vehicles from upscale manufacturers including Mercedes-Benz, Porsche, and Audi and is accessible in both the United States and Europe. Clients have a selection of vans, SUVs, and cars to choose from. Customers who use this service can exchange automobiles up to four times each month with customizable terms. Zipcar is a choice for people who want to borrow a car on a temporary basis. In the US, Canada, and Europe, this service is accessible. A variety of vehicles are available through Zipcar, including sedans, SUVs, and vans. For as little as an hour or as long as seven days, customers can rent cars. Zipcar also offers a number of discounts and perks. Those who don’t want to commit to a long-term automobile lease or purchase will find these new car subscription services to be excellent alternatives. Many options are available, such as adjustable periods and a selection of discounts and prizes. Customers can obtain an automobile with the help of these services without making a commitment to a lengthy lease or purchase. CAR SUBSCRIPTION MARKET RECENT DEVELOPMENT AND INNOVATION S Company Development No Name ALD Ugo Subscribe offers a quick escape option. Benefits of a temporary mobility option with a simple exit after six months. without any fees for early termination for 1 ALD pre-runner contracts. vehicle on demand. On ALD Automotive registration, vehicles from ALD’s fleet are immediately available and can be delivered as soon as one week. Test-drive service is available at the door (at home or at work). Automakers are developing novel and repulsive strategies to extract more money from their customers as the cost of producing automobiles rises and profit margins contract. The most recent attempt to charge individuals for items their car already has is subscription-based access to features like heated seats or remote-start key fobs. Whether buyers will simply accept it is the question. Since cars now contain more computers and software than ever before, automakers can quickly add new features or fix issues via over-the-air software upgrades. This has also given these automakers additional revenue streams. Volkswagen, Toyota, Audi, Cadillac, Porsche, and Tesla have also experimented with subscription models for certain options, such as driver-assist features or voice recognition. The majority of the subscription plans appear to be from luxury manufacturers, which makes sense given that their consumers are largely wealthy and can more readily swallow an annual or monthly charge. According to industry analysts, subscriptions are coming to mass-market vehicles as mainstream manufacturers seek new revenue streams to help support their massively expensive plans to produce electrified, connected, and autonomous vehicles. In the United States, General Motors has around 16 million vehicles on the road, about a quarter of which incorporate features for which customers pay subscription fees. Finn began selling subscriptions in Germany and now serves the Northeast and mid-Atlantic areas. Prices are extremely affordable compared to standard leases and, in certain cases, result in significant savings when all fees are taken into account, especially for pricey pickup trucks and SUVs. No activation fee, security deposit, or down payment are required. While Finn does provide up to 1500 miles for an additional cost, the mileage cap is lower than those of other services. There are subscription lengths ranging from six months to a year. Swaps are not permitted. Outside of Porsche Drive, Sixt+, a division of the German rental company that specialized in luxury vehicles, has the most exclusive, sought-after automobiles. It’s especially helpful if they live in a big city and require a modern vehicle for at least a month. The limits include a minimum age requirement of 21 (18 in New York), one swap each month, no delivery, mileage restrictions that vary by automobile, a security deposit requirement, and the exact car is not guaranteed. Fully maintained vehicle with maintenance, roadside assistance, and insurance management handled by ALD for the duration of the contract. Simple digital onboarding with minimal paperwork. a rapid, digital credit check that is brief. Prior to being recognized as ready-to-drive, ALD registered automobiles are quality-assured pre-leased vehicles that have undergone meticulous professional inspection, extra care during refurbishment, and good maintenance. CAR SUBSCRIPTION MARKET COMPETITIVE LANDSCAPE SI Timeline Company Developments No Dec India’s Zoomcar raises $92 million to expand its car rental marketplace 1 Zoomcar 2021 to new markets Car subscription startup GO has raised $41 million in seed round 2 Oct 2021 GO funding. GO will use this capital to grow its fleet and expand its car subscription service across the US Onto, a U.K.-based electric vehicle subscription firm, has raised $175 July 3 Onto million in a combined equity and debt Series B financing, which it hopes 2021 to use to expand both within the country and into foreign markets. Jan UK’s Drover raises $26M to take its car subscription marketplace to 4 Drover 2021 Europe SI no Timeline Company Sales At the end of third quarter the total revenue of 1 Q3-2021 Hertz Hertz was $1.9 billion and in the previous year the revenue was $892 million. The third quarter total revenue of LMP 2 Q3-2021 LMP Subscription Subscription was $141,432882 and in 2020 the revenue was $13,371,337. The revenue of Cazoo at the end of third 3 Q3-2021 Cazoo quarter was £174.4 million and in 2020 the revenue was £47.5 million. UK based Drover and India based Zoomcar have partnered with multiple OEMs for subscription services. Hyundai and Mahindra subscription is available in India through its partner(Revv).Myles have combined with Maruti Suzuki, Toyota, and MG to provide subscriptions in India. In the UK Jaguar Land Rover have combined with InMotion to provide subscriptions. Going forward, we believe there is scope for tech companies like Drover, Zoom car to scale the vehicle subscription services to many more cities. Although, there will be push back from dealer bodies but many of them just don’t have the required infrastructure to support a revolutionary business model like this. Fleet operators have an important role to play in providing subscription services along with rental car companies. They have vehicles which remain unused for long stretches which will see increased utility if they are used in subscription. They can set up the entity by themselves as well as combine with tech companies. Companies also offer the platform for individuals to provide a vehicle for subscription and get payment for their vehicle. It can be a fixed monthly payment or based on a commission basis. This allows multiple partners in this industry ranging from OEMs to technology companies to fleet and rental companies to individuals The company Cazoo based in the UK acquired the rental car service provider Drover to expand and enter the car subscription market across Europe in December 2020. In July 2020, Drover already raised $28.29 million which put the total funds in the company at approximately $41.4 million by the end of the year 2020. The acquisition will provide customers to subscribe to a car paying a monthly fee or even buy the car according to the existing business model of Cazoo. The company in January 2021 also announced plans of going public at a valuation of approximately $6.9 billion. Shortly after the announcement, in February 2021 the company also acquired Cluno, an independent leading flexible car subscription service provider based in Germany. The agreement enables Cazoo to access Cluno’s subscription platform and user database to accelerate expansion into Europe. Hertz Global announced the financial results for the second quarter of the year 2021. The company has generated total revenue worth $1.9 billion for the second quarter which is a significant 62% increase from the revenue of the previous quarter. The company in May 2021, announced the sale of its wholly owned subsidiary Donlen Corporation to Athene Holding Limited at $891 million. The agreement incorporates Donlen’s fleet management expertise with Athene’s strategic business model to achieve success and expand in the near future. The company announced that it has secured financing for its fleet worth $4 billion by filing a motion in the US Bankruptcy Court in the District of Delaware. The company is planning to renew its rental fleet by the end of the year 2021 by purchase of approximately 229,000 vehicles. LMP Automotive Holding announced the results for the second quarter of the year 2021, where their total revenue increased from $132.3 million for the second quarter of the year 2020 to $140 million. The overall gross profit also increased by $25 million to 26.4 million for the second quarter of the year We use cookies to understand site usage and improve content and offerings on our site. To learn more, refer to our Privacy Policy. By continuing to use this site, or closing this box, 2021 year on year. 0  The company in August 2021, announced acquisition for a Kia dealership in New York and you consent to our use of cookies. Learn more Connecticut which will generate approximately $82 million and $40 million annually in revenues Got it! respectively. It has also announced acquisition of Chrysler Dodge Jeep Ram dealership in New York Send message as well as acquisition of General Motor and Nissan dealerships in Texas

2. Maruti Suzuki India Limited has extended its vehicle subscription programme in four more cities of the country namely, Indore, Jaipur, Mysore and Mangalore. Now the service will be available in a total of nineteen cities, for the subscription services, the company has partnered with ALD Automotive India, Myles Automotive Technologies as well as Orix Auto Infrastructure Services. Your Name Business Email CAR SUBSCRIPTION MARKET COMPANY PROFILES Country Hertz Phone Number +33 Porsche Drive Company Name Sixt+ Your message Care by Volvo Onto GO By submitting this form, you are agreeing to the Access by BMW Terms of Use and Privacy Policy. Cazoo Wagonex Borrow Pivotal by Jaguar Land Rover DOWNLOAD SAMPLE Revv Mycardirect Zoomcar Mercedes-Benz Collection FreshCar(Previously Carma Car) Enterprise Rent-A-Car LMP Subscriptions Canvas(A subsidiary of Ford Motor Credit Company) Clutch Technologies LLC RELATED REPORTS MARKET REPORTS CONSUMER RESEARCH INFORMATIO N ADVISORY SERVICES CONTACT INFORMATION  172/1, 2nd Floor, 5th Main, 9th Cross Rd, Opposite to Kairalee Nikethan Education Trust, Indira Nagar 1st Stage, Bengaluru, Karnataka 560038, INDIA  +1 217 636 3356, +44 20 3289 9440  sales@mobilityforesights.com Working Hours: Mon - Fri (9 AM - 9 PM IST) Connect with us     © Copyright 2017-2023. Mobility Foresights. All Rights Reserved. We use cookies to understand site usage and improve content and offerings on our site. To learn more, refer to our Privacy Policy. By continuing to use this site, or closing this box, 0  you consent to our use of cookies. Learn more Got it!