Remember buying your first car? You probably spent weeks researching, comparing your budget with what’s available, picking a model, colour, features. Then there is the first drive with your newly acquired vehicle. You feel a sense of freedom cruising down the highway, love how it sparkles in the sun and that particular scent when you get in. You cherish having your own space, setting up the seat and the mirrors just so and playing your favourite music as loud as you like. Those were the days, right?

According to new reports, those days might be over – and soon! Does this mean owning a private car will become as ancient as owning a stereo cassette player within the next decade?

Capgemini’s Cars Online study finds 34% of respondents view mobility services such as car sharing and on-demand transport as an alternative to car ownership.

With two thirds of the world population living in cities by 2050, “the survey registered a significant shift in the automotive landscape; 50% of respondents said they appreciate having access to a wide range of cars and services that can be used as needed.” (Warc.com)

So should car manufacturers just pack up? How can OEMs (Original Equipment Manufacturers) stay competitive in this fast changing sharing and on-demand world?

According to Capgemini “OEMs should be heartened by the fact that more than half [of survey respondents] say that mobility services are complementary to owning a car. Enterprising OEMs and dealers might want to offer mobility services to customers, since they’re not a threat to sales but are, in fact, quite the opposite. In fact, OEMs could use their complete portfolio to position themselves as mobility providers. That’s a win-win strategy, since some consumers use a mobility service to “test drive” a car before making a purchase, while others explore their desire for “something new” by taking another brand out for a spin.”

Adjusting to change is an important survival strategy for successful companies. OEMs need to recognise a major shift in the way people move is happening and set themselves up for the future.

While car ownership may always be relevant for families, it looks like single urban dwellers increasingly turn to alternative mobility as a service (MaaS) models. Catering to this growing audience is crucial not only for the car industry but also transport service providers around the world.

 

Image courtesy of Pixabay.