Company cars could be on the way out by 2040 according to a new report by automotive analyst IHS Automotive.

This is down to companies wanting more efficiency in order to remain profitable through what the analyst calls challenging times, meaning there will be increased pressure to rethink or halt the ‘company car culture.’

The analyst claims 70% of executive cars and 65% of upper medium cars are currently owned or leased as company cars.

The firm it will have a significant impact on the market, suggesting the need for executive cars will decline rapidly as well as a ‘significant portion of the upper medium market’.

Those impacted by the changes will look at other options, IHS says, including the used car market, shared mobility options or privately leasing or buying a smaller vehicle due to “a lack of credit options in a challenging climate.”