Car sharing will not dampen booming auto sales
Deutsche Bank claims car sharing won’t affect auto industry sales
According to Deutsche Bank, car sharing schemes, such as those operated by Uber and Gett, will not negatively impact on the sales performance of auto manufacturers, contrary to popular belief.
At face value, one would imagine that car sharing schemes are the biggest adversary currently facing global auto manufacturers. Fledgling mobility companies such as Uber are already experiencing a definite rise in popularity, despite their young years.
Uber was founded in 2009 by a pair of Americans, Travis Kalanick and Garrett Camp, who came up with the idea after they had trouble hailing a cab in the busy city of Paris. They developed an app which would allow users to find a ride, explain their travel needs and pay for the service all with the click of a button.
The company, and those that have popped up since, have caused controversy with government and taxi drivers worldwide, who have taken a financial blow since the car sharing schemes have gained in popularity.
However, another obvious victim of the car sharing trend, the auto industry, should not be worried, according to the Deutsche Bank. An analyst from the German bank said “that a decline in the total population of vehicles” will not necessarily “lead to a decline in annual vehicle sales”.
This argument goes that vehicles used for and by car sharing schemes will have a shorter lifespan due to the increased physical exertions being placed on these vehicles. Deutsche Bank claims that this will result in vehicles being replaced more often and perhaps auto manufacturers will experience a “less cyclical” auto sales.
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