Automakers are trying subscription models for EVs as an alternative to traditional buy or lease, but a new Deloitte report argues that they can also play a surprising role in gasoline-powered car sales.
With growth expected in EV adoption, concerns about the resale value of internal combustion cars could spur subscription models, according to the report. This conclusion is based on a survey in the fall of 2022 of more than 9,500 consumers in the US and Europe, according to Deloitte.
But that anxiety doesn’t always go in the direction we might expect. Of those surveyed, 57% of European consumers and 55% of US consumers “expressed concern” about the resale value of their internal combustion vehicles “particularly due to failure their plan to support EV adoption,” according to Deloitte.
Consumer interest in vehicle registration (from the 2023 Deloitte report)
It is true that concerns about the resale value of electric vehicles are also high, with 47% of Europeans and 49% of Americans surveyed saying they are concerned about the future value of electric vehicles. That could be due to rapidly changing vehicle and battery technology, the report said.
Either way, this appears to provide an opportunity for a subscription, allowing consumers to put a car in their driveway for a certain fee, but still maintain the option to return the car at any time. any.
However, concerns about the resale value of gasoline-powered cars are a turn-off, as just a few years ago this concern was largely centered around the resale value of electric vehicles. Tesla may have helped quell that, because of their used cars in general sold very quickly.
Concerns about vehicle resale value (from the 2023 Deloitte report)
There is no shortage of experiments with electric vehicle registration. Hyundai just brought back Its registration for EVs allows flexible monthly access. California’s autonomy also offers a low-commitment way to register a Tesla car.
Not everyone sees subscriptions as the model of the future. Canoo started focusing on such a model but move away from it for a fleet and centralized ownership. Vinfast has intended to come up with a plan through which drivers will battery pack rentalnot the whole car, but seems to have stepped back from that as well.
