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Car subscriptions could be the catalyst for the mobility turnaround in Germany
The sale of electric cars is declining in Germany. In October, a total of 35,491 new electric vehicles were registered, which represents a decline of about 5 percent compared to the same month last year. As a result, e-vehicle sales this year have so far been approximately 27 percent lower than last year. This is evidenced by the figures from the trade organization European Automobile Manufacturers Association (ACEA).
Test the electric vehicle market with car subscription models
David Bailey, the professor of business studies at the Birmingham Business School, says that car subscriptions could be the key to the increased uptake of electric cars in Germany.
"With car subscription models, consumers can wonderfully test the market for electric vehicles. Drivers sometimes only adopt this new technology hesitantly because the initial costs are high, they have concerns about range and charging options, and there is uncertainty regarding resale value," explains David Bailey. A car subscription model allows consumers to test whether electric vehicles fit their lifestyle and whether they are cost-efficient for them. Car subscriptions do not constitute long-term commitments, so consumers can try an electric car with low risk."
Car Subscription Service Offers Control and Flexibility
The car subscription service :Dribe is owned by Denmark's largest player in the automotive market, the Semler Group. It offers a completely digital customer journey and an open-ended subscription. This gives subscribers full control and sufficient flexibility to conveniently adjust their subscription and vehicle to their dynamic needs—whether it’s an electric car or a conventional solution.
"When customers can choose flexibly, we find that selections are made from a broader range of vehicles. For longer journeys or uncertainty regarding infrastructure, we often find that people revert to conventional combustion engines. However, we have experienced that people stay loyal to technology once they get used to the many conveniences of electric cars," said :Dribe CEO Jesper Hill-Kjærsgaard. In this context, offering a range of contemporary electric cars and combustion engines within a subscription model is advantageous. This allows customers to compare the pros and cons of different options and decide between them."
Untapped Potential
Peter Wells, professor of business and sustainability and head of the Centre for Automotive Industry Research, argues that car subscription services can play a crucial role in optimizing resource consumption in the transport sector.
"When consumers choose large cars to meet very rare needs, the energy transition in the automotive industry is challenged. This has the effect of making vehicles oversized, which requires an unnecessary amount of resources in both production and maintenance. Car subscriptions hold untapped potential to advance the mobility transition. Through this model, consumers can swap cars as needed, and new vehicles do not need to be oversized solutions that offer everything," says Peter Wells.
Challenge of Innovations
Despite the promise of car subscriptions, Peter Wells emphasizes that it will be challenging to change the automotive industry's tendency to adhere to proven practices. Out of respect for established routines, Dribe focuses on combining traditional business models with digital opportunities, which facilitates the transition to future mobility solutions.
```Bu içerik Almancadan Türkçeye otomatik olarak çevrildi."At Dribe, we believe that sustainable change begins with a comprehensive understanding of the industry's needs and requirements. This has been a focal point in the development of our concept and our digital subscription platform. We provide the comprehensive knowledge and experience that the Semler Group has cultivated for over 100 years with strong traditions in the automotive industry," says Jesper Hill-Kjærsgaard.
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