Part 5/7:
In an interesting twist, Godfredson sheds light on the effect of electric vehicle (EV) adoption on scrappage rates. Many EV owners retain their internal combustion engine (ICE) vehicles, prolonging their lifecycle and thus reducing demand for new cars. The aging vehicle population, now averaging 12.6 years, is further exacerbated by improvements in vehicle reliability.
Moreover, consumer attitudes toward cars are changing. Younger generations are acquiring driver’s licenses later, perceiving car ownership as a commodity rather than a necessity. The rise of ride-sharing services and autonomous vehicles could also fundamentally change how people approach car ownership, impacting demand.