New data from mobility tech company Casi shows EU drivers subscribe to car access for longer periods than ever before
A tech provider for many of Europe’s leading car subscription services, Casi’s pan-European data shows average car subscription length has more than doubled in 2023, with more EU drivers choosing to access cars flexibly in a challenging economic climate.
Bergen, Norway (December 19th, 2023) Norwegian car subscription technology company Casi has announced new data showing more people choose car subscriptions as a permanent mobility solution. The average subscription length has increased from 215 to 461 days. At the same time, the average monthly price has decreased from €540 to €519 per month, in line with expectations as drivers opt for longer commitments. The churn rate for car subscriptions has dropped from 17% in 2022 to 7.3% in 2023.
The data insights are based on master data from Casi’s platform, containing more than 30,000 cars in European fleets. Casi’s data shows a clear trend where consumers treat car subscriptions as a way of managing finances with flexibility and shorter contract periods. With a challenging economy and rising prices, many are looking for alternatives to the significant up-front cost of buying a car. They are exploring new options for more flexibility and less short-term financial risk.
“Global car sales have declined significantly in 2023, but our data shows that many have gone from ownership to flexible car access when faced with a tighter purse. I think the flexibility of having a car on subscription is a major factor in more people going down that route, and for longer periods than before,” says Hans Kristian Aas, CEO of Casi.
Significant increases in subscription duration and lower churn rates also indicate that subscription services have become more appealing to the typical leasing customer, with longer access periods to the same car. With subscriptions traditionally viewed as a middle-ground between short-term rental and leasing, it is clear that increased financial pressure has led to more people edging on flexibility, even for their long-term mobility needs.
“The leasing market has boomed in many markets over the last couple of years, and it’s fascinating to see how people use car subscriptions, which is getting more similar to how leasing works. It is clear that even though many are willing to commit to three-or-more year leasing contracts to avoid buying a car, many also want more flexibility than what traditional leasing products have been able to provide”, Aas continues.
The data shows longer average subscription terms, but there are clear high- and low seasons for car subscriptions. By far, the most popular month for new subscriptions is June, followed by July, suggesting people start to consider their mobility before the holiday season. Conversely, the low season is the winter months of December and January, with less than half the volume of the summer high season.
The global car subscription industry is worth more than US$5 billion and is set to grow to over US$100 billion by 2032, with a forecasted annual growth rate of 35%. Most providers of car subscription services are car manufacturers, leasing companies, rental agencies, and car retailers looking to create additional revenue streams and meet new customer demands for flexible personal mobility. With new data showing increased use and average spending on subscriptions, more and more automotive players are jumping on the subscription bandwagon.
“Lynk & Co and Care by Volvo were the early pioneers in building broad, multi-country subscription services, but in later years, we’ve seen automotive giants like Hyundai, Stellantis, and Toyota take the plunge and go big. Sometimes, the automotive industry is a bit like a game of chicken, so seeing more big players creating wide-ranging subscription services is likely to bring others to the table, too. From our data, we can see that consumers embrace this development,” Aas concludes.
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For additional information:
Media kit with pictures
Jordan Symmonds, Head of Communications
Casi Auto
About Casi
Casi is a Norwegian car subscription technology company enabling car fleet owners to create new and sustainable revenue streams by offering car subscription services. Founded in 2018, the company provides all the technological tools needed for OEMs, dealerships, leasing and rental companies, and marketplaces to offer their own tailor-made car subscription services straight to consumers. Casi's technology is used and trusted by over 50 car subscription providers, including market leaders like Hyundai, Toyota, Stellantis, Volkswagen, Schibsted, and AutoScout24.
Casi is supported by Norwegian bank DNB, VC funds Idékapital, Norselab, Vasuki Global Tech, and climate fund Nysnø, leading mobility players AutoScout24, Hedin Automotive, DSD, as well as long-time investors Frydenbø and NEW & Company. For more information, visit www.casi.auto or find us on LinkedIn.
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