** In addition to the report investment, also provides for access to Frost & Sullivan's latest market and competitor data (forecast to 2020) plus an analyst briefing for queries regarding latest market drivers and restraints**
This Frost & Sullivan research service analyses the fleet sales, vehicle lease products, opportunities, top players, growth drivers, restraints and challenges in the fleet vehicle leasing market in Norway. In this research, Frost & Sullivan's expert analysts thoroughly examine the following market segments:
- Operational leasing
- Financial leasing
- Outright purchasing
Operational Leasing Set to Enhance the Company Car Market
Vehicle fleet leasing is the most popular funding method in the company car market in Norway, with operating lease dominating the fleet leasing market. The market share of operating lease is projected to increase, owing to its penetration in the small- and medium-sized enterprise (SME) sector, as more companies outsource their non-core activities to save taxes on vehicle purchase.
Operating lease is the preferred funding method for passenger vehicles, whereas financial lease is preferred for light commercial vehicles (LCV). The drop in oil prices and the consequent economic uncertainty is discouraging companies from investing in passenger vehicle fleets and LCV fleets.
A prominent trend in vehicle fleet and leasing market in Norway is the Government’s interest in promoting hybrid and electric vehicles. The Government is incentivizing electro mobility (e-mobility) by exempting purchase tax, lowering fuel cost; and offering toll-free roads, free parking and access to bus lanes. Hence, companies will be eager to upgrade to environment-friendly fleets, driving the growth of the overall fleet and leasing market. Furthermore, leasing attracts local corporates and SMEs with benefits such as the exemption of value added tax (VAT) for personal use of company cars by employees. This encourages the employees to opt for company cars as a perk or salary-sacrifice benefit.