What is car subscription?

The automotive industry is being turned upside down and flexible fleet concepts are thriving.
September 15, 2022
Jordan Symonds

The automotive industry is being turned upside down. The traditional distribution model involving the OEM, an importer, and a dealership network is being replaced by direct distribution either by OEM-owned dealerships, pop-up stores, or digital sales. In Norway, the average number of dealership visits when purchasing a car has gone from four to 1,1. The decision is now made at home, on the sofa, watching CarWow reviews on YouTube.

The automotive industry is being turned upside down

In a rapidly changing automotive industry, car subscription is excelling by digitizing the customer experience and bundling services to ensure profitable cash flows for the providers. OEMs and market reports estimate that 20-30% of new cars sold in 2025 will be sold on car subscription. Players like Care by Volvo have already surpassed the 15% mark in several European markets.

30% of new cars being sold in 2025 will be sold on car subscription

Car subscription is a flexible alternative to leasing or owning a car. Consumers subscribe to a vehicle for a flexible monthly term, and the subscription can be canceled anytime. Car subscription concepts often include additional services in all-inclusive or modular add-on models, such as maintenance, insurance, tire change, the option to swap a car, and many other services.

At Casi, we have launched and scaled successful subscription services since 2018, and we often hear that the product empowers people to make sustainable choices. Car subscription helps make the green shift from ownership to usership and lowers the barrier to EVs. Casi’s Norwegian DNA has given us years of experience in how to electrify fleets, as Norway is the world’s leader in EV market share.

Car subscription providers are capitalizing on the subscription generation, which has established a lifestyle around pay-as-you-go. They want access to the right form of mobility at the right time. By providers offering consumers a fleet of vehicles that can fit various lifestyles, a long-term relationship is built on the premise of flexibility within the fleet.

The car subscription segment is gaining momentum, and we at Casi want to partner up to unlock new revenue streams. Now is the time to knock on our door!

Jordan Symonds
Jordan Symonds
Head of Communication
Jordan works to build the Casi community by telling stories about our customers, employees, experiences, and insights we’ve gained over the years in automotive!