What Will Have The Most Impact On Auto Sales Long-Term?

Auto sales have been stable across the globe over the last few years, following the recession, and most people still prefer to own a vehicle, particularly when it comes to the older generation.

On the other hand, as millennials start to take over as the largest target group of most industries, the trend of owning vehicles is likely to shift towards car sharing by 2030.

According to a new study by McKinsey, “Expected expansion of shared vehicles will slow the long term growth of auto sales worldwide”.

“As more people around the world look to use vehicles, they will be doing so through car sharing and mobility on demand services,” said Hans-Werner Kaas, senior partner and head of the McKinsey.

To drive the point home, McKinsey highlights the fact that nearly every major automaker has either established or is planning to establish a car-sharing program, starting with GM and Ford.

In the U.S., there are currently around 20 car-sharing programs, with Zip Car being the most popular with more than 950,000 members in the U.S. and Europe.