Håkan Samuelsson, the CEO of Swedish carmaker Volvo, reckons that with the wide adoption of car-sharing and ride-sharing platforms, the automotive industry will divide itself into “four main sections.”
At the launch of the Volvo S90 long-wheelbase in Shanghai, Samuelsson spoke about how short-term rental, he thinks, will be the most popular form of car usage in the near future. “Like Uber & Lyft, our role will soon be to provide autonomous cars that are part of that sort of mobility [ride-hailing services]. That’s why Volvo has partnered with Uber to grow in this area of the market.”
After short-term rentals, Samuelsson said that peer-to-peer sharing would be the next best platform. “If you need ability for a longer time, maybe a week, we think there will be a market for car sharing, which we are already exploring. While we develop into peer-to-peer car sharing, we must develop car connectivity, because these two are heavily linked.”
Volvo believes that, with the strong uptake of car-sharing and ride-sharing apps, there will be stronger demand for on-demand car usage over short periods. However, Samuelsson believes that this system will not adequately cater for those who may be looking to own or use a car over a longer period of time.
“When you want your own car, people will use a form of subscription, where they pay a monthly fee, like you do for a phone contract.” This is largely similar to a residual-value loan or personal contract purchase scheme, like the ones available in Australia.
The CEO went on to explain that the existing manner of buying a car, may soon become the “smallest contributor” to the new car market.
“Of course, in parallel to this will be the traditional buying of a car, but it will not be the main way anymore. Some people will always want to own their vehicles,” Samuelsson concluded.
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