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Growing Transportation Services Will Hurt Retail Auto Sales, Study Says

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Article Highlights

  1. “As new solutions are introduced, consumers, particularly the Millennials and Gen Z, may move away from the traditional avenue of personal vehicle ownership,” says Cox Automotive researcher Isabelle Helms.
  2. “Bottom line: the smart, new alternatives to car ownership will have an impact on retail car sales in the future,” Helms says.
  3. She adds, “As new solutions are introduced, consumers, particularly the Millennials and Gen Z, may move away from the traditional avenue of personal vehicle ownership.”

Burgeoning transportation alternatives eventually could claw into traditional vehicle ownership, according to the latest installment of the Cox Automotive Evolution of Mobility Study.

Other studies indicate Americans appear loath to give up their personal vehicles, but the Cox study says retail auto sales in the U.S. could drop nearly 30% as alternatives to traditional ownership become more accessible and affordable.

Many consumers – especially young ones – “are ripe for disruption, suggesting they’re willing to walk away from personal vehicle ownership,” Isabelle Helms, Cox Automotive’s vice president-research and market insights, says at a company event held in conjunction with the 2019 North American International Auto Show in Detroit.

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