Currently reading: Volvo CEO: car sharing will dramatically impact the automotive market
Volvo CEO Håkan Samuelsson thinks his company is well placed to mount a charge at the changing car market

Volvo CEO Håkan Samuelsson believes the growth in car sharing will cause the world’s car market to split into four main sections.

Speaking at the launch of the Volvo S90 L in Shanghai, Samuelsson said the most popular form of car usage in the near future will be short-term rental.

“Like [ride-hailing services] Uber and Lyft, our role will soon be to provide autonomous cars that are part of that sort of mobility,” he said. “That’s why Volvo has partnered with Uber to grow in this area of the market.”

Samuelsson said the second most popular form of car usage would be peer-to-peer sharing.

“If you need mobility for a longer time, maybe a week, we think there will be a market for car sharing, which we are already exploring,” he said. “While we develop into peer-to-peer car sharing, we must develop car connectivity, because these two are heavily linked.”

With connected cars, it will become convenient to use a smartphone app, for example, to request a car. This sort of car usage will still be relatively short term, so Samuelsson believes it can’t cater for people who want to own a car for longer periods of time.

“When you want your own car, people will use a form of subscription, where they pay a monthly fee, like you do for a phone contract,” said Samuelsson.

He suggested that this sort of contract would be similar to personal contract purchases (PCPs), which are already the most popular way to buy a car in the UK today.

Samuelsson explained that the more traditional purchasing of a car would therefore become the smallest contributor to the new car market.

“Of course, in parallel to this will be the traditional buying of a car, but it will not be the main way anymore,” he said. “Some people will always want to own their own vehicles.”

Volvo launches autonomous driving programme

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Campervan 27 November 2016

Car sharing or hiring versus ownership

Myself the only reason I own a vehicle is to have exclusive use at any time of day or night with no need to rely upon anyone else for anything. Without that exclusive use I might as well travel on public transport at someone else's convenience but at a far lower price than car ownership and car sharing.
L320 26 November 2016

@ Samuelsson

“Some people will always want to own their own vehicles.”

Yes mate but not one of yours thank you.

winniethewoo 26 November 2016

seventh reason car sharing sucks.

Imagine a situation where someone has booked a car directly after you. You are running 5 mins late, through no fault of your own. You will have to pay a fine and that other guys taxi fare to reroute to another car. Suddenly that 1 hour drop off that should have cost £7 is costing £50 or more.