The corporate European sector will face increasing pressure to rethink or even halt the company car culture by 2040, according to IHS Automotive.

With nearly 70% of E-segment vehicles currently owned or leased as corporate company vehicles, according to IHS Automotive estimates, and 65% of D-segment vehicles in the same category, this scenario has the opportunity to have a significant impact on the automotive market.

Impacted employees will look for alternative mobility options, including the used car market and shared mobility options or privately lease/buy a smaller vehicle due to the lack of credit options available in this challenging climate.

The decline of the company car sector in the European vehicle market could be of such magnitude that nearly 50% of the D-segment could evaporate by 2040, according to IHS estimates.

Consequently, the European-specific market conditions would demand that OEMs will have to start embracing a “mobility provider” mentality rather than relying solely on being a leading vehicle provider.

Those OEMs who start to plan for a more dynamic mobility market would be well poised for future success and future relevance, according to IHS.