According to Volvo CEO Håkan Samuelsson, the growth in car sharing will lead the world's car market to split into four main sections. He addressed this at the launch of Volvo S90L in Shanghai.
Samuelsson said that the short-term rental will be the most popular form of car usage in the near future. He added, "Like [ride-hailing services] Uber and Lyft, our role will soon be to provide autonomous cars that are part of that sort of mobility."
"That's why Volvo has partnered with Uber to grow in this area of the market," he 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."
He believes that, with connected cars, it will be easy to use a smartphone app to request a car. "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 also explained that the traditional way of purchasing of the car will not be the main way, therefore, it will 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. Some people will always want to own their own vehicles," he said.