Electric vehicle (EV) sales in Europe rose slightly in October, with 124,907 new registrations marking a 2% increase compared to the same month in 2022.
Despite this gain, year-to-date EV sales are 5% lower than the previous year, according to figures released by the European Automobile Manufacturers Association (ACEA).
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Industry experts highlight the potential of alternative business models, such as car subscriptions, to address barriers to EV adoption.
Car subscriptions as a gateway to EV adoption
David Bailey, Professor of Business Economics at Birmingham Business School, sees car subscription services as a practical way to encourage hesitant consumers to consider EVs.
“Subscription models allow consumers to ‘dip their toes’ into the EV market without committing to high upfront costs or worrying about range, charging infrastructure, or resale value,” Bailey said. “They provide flexibility and minimise risk, enabling drivers to assess whether EVs fit their needs and budgets.”
Flexibility and consumer choice
One example is Denmark-based car subscription service :Dribe, owned by the country’s largest automotive group, Semler Gruppen. :Dribe offers a fully digital platform and open-ended subscription service.
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By GlobalDataJesper Hill-Kjærsgaard, CEO of :Dribe, explained how the service works. “When customers have the flexibility to choose, we see greater variety in the models selected. For longer trips or where infrastructure is uncertain, some switch back to conventional cars. However, once accustomed to the benefits of EVs, many tend to stick with the technology,” Hill-Kjærsgaard noted.
Optimising resource consumption
Peter Wells, Professor of Business and Sustainability at Cardiff University and Director of the Centre for Automotive Industry Research, argues that car subscription models also have sustainability benefits.
“Many consumers purchase oversized vehicles to meet rare needs, which leads to inefficiencies in resource use. Subscription models offer the potential to optimise green mobility by allowing users to change cars as required, reducing the need for all-in-one oversized solutions,” Wells said.
Wells also highlighted the challenge of shifting the automotive sector away from its traditional practices. Hill-Kjærsgaard echoed this, emphasising the need to blend established industry practices with digital innovation.
Expanding international reach
With more than a century of automotive experience through its parent company, :Dribe is now expanding its subscription model internationally. The platform aims to provide a more flexible, streamlined approach to car ownership for both EVs and conventional vehicles.
“As we grow globally, our focus remains on offering simpler, quicker, and more adaptable mobility solutions for consumers and businesses,” Hill-Kjærsgaard added.
While Europe’s EV market faces challenges in 2024, alternative ownership models like subscriptions may provide a pathway to broader adoption and a more sustainable automotive future.
