Future business carsharing: study reveals significant impacts on the used car market and franchised dealerships.
- Strong growth potential in the carsharing business until 2020
- Carsharing members will decrease their vehicle ownership
- Substantial impacts on the used car market and franchised dealers expected
DriveNow, car2go, Flinkster: with established companies such as BMW, Daimler and Deutsche Bahn expanding their offers, carsharing develops from a niche product to a serious mobility offer in metropolitan areas. The past and future growth rates are significant and raise the question of whether this development represents a threat to the traditional business model of the OEMs and their dealer networks.
In the past, various international studies have dealt with the impact of carsharing on vehicle ownership and sales volumes. Although the analyses largely show the same results regarding peoples’ attitude towards vehicle ownership, the studies reach vastly different conclusions.” It is against this background that we have separately analysed possible effects of carsharing on the sales volumes of new and used cars”, explains Thomas Hegger, management consultant at iic group. The deliberately conservative scenario for the German market as an example assumes that in 2020 4% of all vehicle owners will use carsharing offers.
The surveys underlying to the iic group study show that about half of all carsharing members change their attitude towards vehicle ownership: one part of the members will reduce the number of vehicles in their households, the other part that did not own a car in the first place will not consider buying one in the future. According to the study, the impact of this development on new car sales volumes is lower than on used cars, with new car sales decreasing less than 3% until 2020.
The effects are much stronger on the used car market: with decreasing demand and the over-supply of used cars generated by carsharing members, reducing the number of cars in their households, a supply and demand gap will gradually develop. The effects are worrying: According to the study, there will be an additional used car over-supply of 8% of the total market by 2020. Taking the example of the German market, that means approximately 500.000 cars annually.
This development will affect dealers in all their business areas: new car sales, used car sales and after-sales. While OEMs can compensate possible losses by investments in the carsharing business, dealers only have limited possibilities to react adequately to the dynamically changing market environment. Consequently increasing competition levels are very likely to reinforce the trend of concentration in the dealer networks.
The results of the study emphasize: OEMs should now strengthen the competitiveness of their dealer networks, enable swift reaction times through improved business transparency and support the increased exploitation of sales potentials through interdisciplinary approaches.
“OEMs will not be able to do without their dealer networks in the next years.” says Igor Bonačić, Managing Director and founder of the iic group. “The increasing complexity of the situation in the automotive business therefore requires a strategic approach that allows a coexistence of mobility concepts and traditional car sales to ensure the survival of franchised dealer networks.”
The iic group study can be obtained via moc.p1569315134uorg-1569315134cii@o1569315134fni1569315134