One in five people living in Toronto (20 per cent) would consider replacing their household vehicle with a car sharing service, according to a recent report from Communauto.
From that 20 per cent the most likely candidates to make that switch are Millennials, as one in four (25 per cent) claim they would reconsider household vehicles for a car-sharing alternative that meets their needs. Sixteen per cent of Generation X consumers and 15 per cent of Baby Boomers would also consider this shift, based on Communauto’s data.
“Currently, 87 per cent of Torontonians own a vehicle. As technology evolves and Toronto becomes a smarter and more mobility-driven city, it’s clear that there’s a desire for new ways of moving around,” said Marco Viviani, VP of Communauto.
A rising shift in mobility preferences and new mobility concepts from both private and commercial customers/consumers have pushed car dealers and OEMs to rethink their current business model, according to EY’s Future of Automotive Retail report. This includes things like car sharing, electric vehicles and a more significant role for used cars and fleet.
In fact, 24-44 per cent of consumers in Germany, the U.K. and Russia consider car sharing to be a viable option to vehicle ownership. The report also revealed that survey respondents consider car ownership as “not important” and are open to making the leap to alternative mobility services.
To survive this shift, dealers will need to create new value propositions. “For automakers and dealers to continue to be relevant, it will be critical to create value propositions that help customers tailor their mobility packages,” said EY in its report. “This could involve offering choices ranging from buying vehicles to designing a package involving access to multiple vehicles and modes of transport.”
The idea for dealers is to shift the consumer focus from the experience of driving the vehicle to experiencing the brand. Furthermore, dealers will also need to consider an integrated after-sales value proposition to ensure customer retention.
Building their digital presence will also prove important.
