Lower petrol costs fuel spending in an industry that’s now feeling the pressure to grow its sales despite falling demand by younger consumers.
The RBC report forecasts annual per-capita petrol usage will rise to 3.1 litres per person by 2020 from 2.1 litres. But, it predicts car-sharing services such as Car2Go and Uber will soon dominate the market, while car-sharing companies such as Zipcar and carshare-hosting service Car2Go will make up for those declines.
“We f구리출장마사지orecast annual per capita spending in the UK in 2020 in which a new generation of consumers is enticed to use services such as car sharing to take ownership of their own vehicle,” said RBC chief economist Doug Porter, who’s also chairman of the UBS Foundation for Economic Research. “However, they will not be able to access petrol as their car costs are set to increase as a result of global oil prices and rising energy bills.”
So why does RBC think demand for vehicle ownership services will grow? Porter says that some services offer free rides and cars that can be leased for a fee that may be acceptable for some types of customers.
But Porter’s forecast also makes sense if car sharing services eventually make up for falling demand in car-sharing services.