It is said that men mostly talk about three things: Sports, Women, and Cars. Similarly, the way someone drives a car can foretell a lot about his or her personality. According to the BMI research reports, vehicle sale all over the world are expected to rise by 3.8% this year as compared to 3.3% growth rate of 2017. Automobile sales all over the world especially in China is however seen to be slowing down. In an October edition, the digital auto report stated that there is a combined profit share of mobility services and 30% of the automotive industry’s benefits as and when compared to the new car sales profits that accounted for 26% sales only. When the profit share of combined traditional business was tallied, a reduction from 71 to 41 percent was seen which is almost as half the profit.
On the contrary, the on-demand mobility services of China, was seen to be of value $15 billion as per 2017 records. It is expected that they will grow by 33% and may reach $201 billion by the end of 2025 and further calculated to reach $656 billion by 2030. This trend is not only limited to the Chinese automobile market but also to the European and North American market as well.
Mercedes Benz to Unlock Limited Launches in Emerging Economies
A few international car makers are taking preemptive actions in hope of having successful business rates in the coming years. Volkswagen AG had established an independent mobility service company of its own by the name of Moia towards the end of 2016. This was an initiative to change the company into sustainable mobility provider. When interviewed, the car company stated that it wants to substantially add its value towards its sale generation and revenue by the end of 2025.
The market is further expected to rise with Chinese automobile market leading its way in terms of production of car parts. Companies like Mercedes Benz are now having access to run in the streets of various other developing nations as well and is not only limited to the North American and European regions. The expansion of the automobile users is seen to be expanding from 30 million as per 2014Bain and Company records to about a 217 million in 2017. The world will soon have every other individual with his hands on the steering wheel.