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Light Commercial Vehicle Sales is Driving the Company Car Market
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Vehicle leasing is seen as a solution to the growing problems faced by companies for their mobility needs, including vehicle funding, fleet maintenance and, more importantly, residual risk handling. Businesses in the present market conditions are focused on their core products/services and would like to outsource all other business support activities. Mobility is a significant department - starting from fleet purchase to re-marketing at a competitive price; for each of the segments in the value chain, unless there is an expert team on the job, issues such as cost spikes, utilization mismatches, irregularities in fleet maintenance, and risks of residual value dips, will arise. Leasing the fleet simply provides hassle-free mobility, on-demand mobility, and fleet after-service facilities, among others. This has driven the growth of the leasing market, giving it a structure and regulating the ecosystem. This study details the size and the shape of the automobile market within the passenger vehicle (PV) and light commercial vehicle (LCV) segments, providing sales/parc data for the total market and the fleet and company car (true fleet) segments. The company car (true fleet) market is discussed in detail with a focus on the actual development and growth potential of financial lease, operating lease, and outright purchase. The analysis takes into account historic data, current market conditions, and insight and opinion from market participants to deliver a 5-year outlook on growth opportunities (2016–2021). In addition to market data (PV and LCV) for both new registrations and portfolio, the study details actual competitor data (portfolio) for the leading leasing providers in the country. Competitor data is available for both the leasing segments (operational and financial) for the base year 2016. The evolution of any industry is dependent on factors such as transformational trends that are linked to the macroeconomic factors of the region and the emerging business models that reflect the innovation in mobility solutions such as rental, carsharing, integrated mobility, and alternative power train. The study covers these evolutionary trends that are expected to shape the market. For leasing providers and other companies sharing the leasing ecosystem, their interest lies in the growth opportunities they need to look at and the strategic imperatives that aid in their pursuit of growth and success. Overall, the study provides a 360-degree understanding of the leasing space (region-specific, with key trends and market overview and outlook).
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