Transportation and auto leaders in China are betting high on the possibility of car sharing rather than people individually owning cars being the future of the country’s transportation sector in the near future. According to Freeman Shen, the CEO and founder of electric car firm WM Motor, the new generation is more interested in accessibility of vehicles as compared to owning vehicles.
Several technological developments in the past few years have made this shift possible by making vehicles easily accessible through cab and vehicle renting services such as Didi and Uber. By making vehicle services available according to demand to tens of millions across the globe, these new car services are challenging the conventional cabbing system and how! The impact of the trend is encouraging several traditional auto companies to pay increased attention to the field of ride sharing. Point in case is General Motors who is already in the market with a car rental program.
Focus on Improved Consumer Experience
Some analysts think that this trend may be one of the biggest challenges for the auto industry, for which the prime modus operandi has been selling cars. Car sharing companies are thus focusing on improving consumer experience. With this as the key strategy, car sharing could also give auto companies a chance to explore new operational areas and generate vast revenues.
The rapid change in consumer preferences could also present promising growth opportunities before start-up companies. In countries like China, increased preference to car sharing services could also lead to the development of new varieties of living environments as the country is encouraging the adoption of smart city technologies.