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Research Reports
2023-04-25
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Selected Topics
Selected Topics-0009_An In-Depth Dive into Vehicle Subscription Services
Summary
As consumers increasingly accept the notion of replacing ownership rights with usage rights, coupled with a preference for on-demand consumption, vehicle subscription services emerge as a novel transaction model in the automobile industry. Notable for their flexibility and high degree of autonomy, these services free consumers from the ancillary costs associated with vehicle ownership.
Beyond third-party platform providers, automakers too are venturing into subscription services. The aims are diverse—expanding new markets, boosting sales volumes, and transitioning to service-based revenue models. Each automaker offers unique subscription packages, covering insurance and maintenance costs. Yet, the terms vary. Still in its developmental stage, the vehicle subscription model promises room for improvements, including improving differentiation from leasing and simplifying added conditions.
Table of Contents
1. The Rise of Vehicle Subscription Services
(1) Transition from Ownership to the Right to Use a Vehicle
(2) Participants Include Automakers, Leasing Companies, and Sharing Platforms
(3) Automaker Roadmaps
2. Chinese Automakers Expanding Overseas Market via Subscription Services
(1) Lynk&Co’s Subscription Model in Europe
(2) Nio’s Subscription Model in Europe
(3) Automaker Subscription Platforms: Free2move and Kinto
3. Analysis of Advantages and Disadvantages of Automakers’ Subscription Services
(1) Advantages
(2) Disadvantages
4. TRI's View
(1) Pricing and contract flexbility are key design pionts for vehicle subscription services
(2) Subscription services help automakers increase sales and expand into new markets
(3) Clarity the differences between buying, subscribing, and leasing to help consumers
have a good experience
＜Total Pages：13＞
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