VEHICLE-AS-A-SERVICE: FROM VEHICLE SALES TO CUSTOMER AND VEHICLE LIFETIME VALUE MANAGEMENT

EXECUTIVE SUMMARY OF OUR FINDINGS

• To meet their mobility needs, customers increasingly want to move from vehicle ownership toward use-based models (38% increase in market share by 2025) that offer greater flexibility and access to the latest technology, while minimizing risk.
• As a result, these ‘Vehicle-as-a-Service’ (VaaS) products massively gain in importance – and also attract people who don’t have cars today, unlocking an additional potential market of 1.32 million customers (in Germany alone).
• VaaS customers are five times more willing to order via new channels (online/ digital) and via a wider range of third-party multi-brand providers, going beyond carmakers and dealerships.
• Brand loyalty among VaaS customers is 50% lower compared with traditional customers, posing a risk that incumbent carmakers and dealers will lose market share to new players – while enabling new EV-only brands to enter the market without requiring big budgets to build offline sales networks.
• The car industry’s entire sales and business model will change dramatically as vehicles return to providers after shorter cycles. This means more sales events and customer interactions for providers, making operations more complex, but also brings more profit opportunities.