Vehicle Subscription Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Subscription Type:

Based on the Subscription Type, the market is bifurcated into Single Brand Subscription and Multi Brand Subscription.

Trends in the Subscription Type:

• Single brand subscription provide access to the latest models and technologies from the specific brand.
• Growing adoption of multi-brand subscriptions to offer greater flexibility, allowing users to switch between different models based on their needs.

Multi Brand Subscription accounted for the largest revenue in 2024 and is also projected to witness the fastest CAGR during the forecast period.

• Multi-brand subscriptions provide flexibility enabling users to switch between different vehicle types based on their needs. For instance, a subscriber might opt for a compact car for daily commutes and an SUV for weekend trips.
• Consumers prioritize the ability to access diverse range of models, which allows them to experience different driving dynamics and features.
• Additionally, multi-brand subscriptions offer less restrictive alternative to traditional car ownership. Subscribers avoid the financial burden of depreciation, long-term contracts, and the stress of reselling vehicles.
• For instance, in November 2021, Mahindra Finance launched "Quiklyz," a multi-brand vehicle subscription service, targeting both corporate and individual customers. Quiklyz simplifies vehicle access by handling registration, insurance, and maintenance, offering a wide selection of cars from various manufacturers. This service aims to provide a flexible and hassle-free alternative to traditional car ownership for both businesses and consumers.
• Thus, as per the vehicle subscription market analysis, the aforementioned factors are driving the multi-brand subscriptions segment.

By Subscription Period:

Based on the Subscription Period, the market is categorized into 1 to 6 Months, 6 to 12 Months, and More than 12 Months.

Trends in Subscription Period:

• 1 to 6 months segment is ideal for individuals with temporary transportation needs, such as seasonal workers and for people relocating for short periods.
• Growing adoption of vehicles for 6 to 12 months is gaining traction as it strikes a balance between flexibility and practicality.

6 to 12 Months accounted for the largest revenue share of 47.29% in 2024.

• This duration strikes a balance between short-term flexibility and longer-term usability. It provides consumers with sufficient time to experience a vehicle without the need of traditional leasing or ownership.
• It also allows consumers to truly experience a car across diverse driving conditions and throughout the year, thus driving the vehicle subscription market demand.
• 6-to-12-month period provides ample time for potential buyers to assess a vehicle's fit, particularly for those considering future purchases.
• Therefore, as per the market analysis, the aforementioned benefits are bolstering the vehicle subscription market trend.

1 to 6 Months is predicted to register the fastest CAGR during the forecast period.

• It offers a low-commitment way to test-drive vehicles before making a longer-term commitment to a subscription.
• In densely populated urban areas, where parking and long-term car ownership is challenging, short-term subscriptions are expected to provide a convenient alternative.
• Further, the tourism industry is a major driver of this trend, with travelers seeking temporary transportation solutions.
• For instance, according to UN Tourism, approximately 1.4 billion international tourist arrivals were recorded, marking an 11% increase from 2023 and indicating a 99% recovery compared to 2019 figures.
• Therefore, the above-mentioned factors are contributing notably in spurring the vehicle subscription industry.

By Vehicle Type:

Based on the Vehicle Type, the market is bifurcated into IC Engine Vehicles and Electric Vehicles.

Trends in the Vehicle Type:

• Growing trend towards the adoption of subscription services to offer a convenient way for consumers without the long-term commitment of ownership.
• IC engine vehicles have established infrastructure, wider availability, and lower upfront costs compared to EVs.

IC Engine Vehicles accounted for the largest revenue share in 2024.

• Subscription providers have greater access to a diverse range of IC engine vehicles, making them available for consumers, hence driving the market demand.
• The widespread availability of gas stations enhances the convenience of IC engine vehicles, thus fuelling the market.
• Generally, IC engine vehicles have lower upfront costs compared to EVs, enabling subscription providers to offer competitive pricing, thereby boosting the market size.
• Thus, as per the analysis, the aforementioned factors are driving the vehicle subscription market share.

Electric Vehicles are predicted to register the fastest growth during the forecast period.

• Consumers are becoming conscious of their environmental impact, driving need for sustainable transportation solutions. EVs offer a cleaner alternative to traditional IC engine vehicles, aligning with this growing trend.
• Governments worldwide are implementing policies to promote EV adoption, including subsidies, tax breaks, and stringent emission regulations, which create a favorable environment for EVs.
• For instance, in September 2021, Volkswagen introduced "AutoAbo," a subscription service in Germany, allowing customers to rent its popular electric ID.3 and ID.4 models on a monthly basis. ID.3 is available starting at EUR 499 per month, offering a flexible entry point into electric vehicle usage. This initiative aims to provide a convenient and accessible way for consumers to experience Volkswagen's EV lineup without the commitment of traditional ownership.
• Subsequently, the aforementioned factors are collectively responsible in driving the vehicle subscription market trend.

By End-User:

Based on the End User, the market is bifurcated into Private and Corporate.

Trends in the End User:

• Growing adoption of subscription services by private consumers due to the flexibility and convenience.
• Corporate clients are utilizing vehicle subscriptions for fleet management, seeking to optimize costs and streamline operations.

Corporate accounted for the largest revenue share in 2024 and is also predicted to witness the fastest growth.

• Subscriptions offer a flexible way to scale fleets up or down based on business needs, driving the market demand.
• Companies are using subscriptions for employee mobility, particularly for short-term projects or temporary assignments, thus fueling the market.
• EV subscriptions are gaining traction in the corporate sector as companies strive to meet sustainability goals.
• Corporate subscriptions also provide a way to reduce the administrative burden of fleet management, thus boosting the vehicle subscription market size.
• Thus, as per the analysis, the aforementioned factors are driving the vehicle subscription market share.