Light Vehicle Leasing Market in South Korea, Forecast to 2023

Light Vehicle Leasing Market in South Korea, Forecast to 2023

While Favorable Policies Create a Mature Leasing Market, Rising User Demand Causes Leasing Companies to Evolve into End-to-End Mobility Providers

RELEASE DATE
31-Jan-2020
REGION
Asia Pacific
Research Code: ME9F-01-00-00-00
SKU: AU01957-AP-MR_24105

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Description

Fleet registration is expected to grow, aided mainly by registrations in the company car fleet. Company cars, which are provided mainly for work purposes in South Korea, are experiencing increased demand from industries and corporate firms. Leasing, comprising operational leasing and financial leasing, is the major sourcing channel for company cars in South Korea. Private leasing has developed strongly over the past four years with the constant growth in several contracts registered annually.

Vehicle leasing is seen as a solution to the growing number of challenges faced by companies with regard to their mobility needs. Amongst others, these include challenges associated with vehicle funding, fleet maintenance, and more importantly, residual risk handling. Businesses in the present market are focused on their core products/services and seek to outsource all other support activities.

Mobility is a significant department—starting from fleet purchase to remarketing at a competitive price—for each segment in the value chain, unless an expert team is on the job, issues such as cost spikes, utilisation mismatches, irregularities in fleet maintenance, and risks of dips in residual value can crop up. Leasing the fleet enables hassle-free mobility, on-demand mobility, and fleet after-service facilities, amongst other benefits. This has driven the growth of the leasing market, given it a structure, and regulated the ecosystem. This study sheds light on the market size across passenger vehicle (PV) and light commercial vehicle (LCV) segments and provides sales/parc data for the total market and fleet and company car (true fleet) segments. The company car segment is discussed in detail, with a focus on the actual development and the growth potential of financial lease, operational lease, and outright purchase. The analysis takes into account historical data and current market conditions and insights and opinions from market participants to provide a five-year outlook on growth opportunities over 2018–2023. In addition to market data (PV and LCV) for new registrations and portfolio, the study provides actual competitor data (portfolio) for the leading leasing service providers in the country. Competitor data is available for both the leasing segments (operational and financial) for the base year, 2018. The evolution of any industry depends on factors, such as transformational trends that are linked to the macroeconomic factors of the region and the emerging business models that reflect innovation in mobility solutions, such as rental, car sharing, integrated mobility, and alternative power-train.

The study covers the evolutionary trends expected to shape the market. For leasing providers and other companies that share the leasing ecosystem, interest lies in the growth opportunities that they need to leverage and the strategic imperatives, which will aid their pursuit of growth and success. Overall, the study provides a 360-degree understanding of the leasing space (region-specific) and offers a detailed account of the key trends, market overview, and outlook.

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Table of Contents

Key Findings

Market Engineering Measurements—New Fleet & Company Car Registrations

Market Engineering Measurements—Fleet & Company Car Parc

Research Scope, Objectives, and Methodology

Market Definitions

Market Structure

Fleet Segmentation

Car Sharing

Market Drivers

Drivers Explained

Market Restraints

Restraints Explained

Total New Fleet and Company Car Registrations

Total New Fleet and Company Car Parc

Total New Company Car Registrations

Total Company Car Parc

Operational Leasing

Financial Leasing

Total Private Leasing—New Registrations

Total Private Leasing—Parc

Growth Opportunities

Strategic Imperatives

Key Conclusions and Future Outlook

Legal Disclaimer

List of Exhibits

Fleet Vehicle Leasing Program—How Can Frost & Sullivan Help?

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
Fleet registration is expected to grow, aided mainly by registrations in the company car fleet. Company cars, which are provided mainly for work purposes in South Korea, are experiencing increased demand from industries and corporate firms. Leasing, comprising operational leasing and financial leasing, is the major sourcing channel for company cars in South Korea. Private leasing has developed strongly over the past four years with the constant growth in several contracts registered annually. Vehicle leasing is seen as a solution to the growing number of challenges faced by companies with regard to their mobility needs. Amongst others, these include challenges associated with vehicle funding, fleet maintenance, and more importantly, residual risk handling. Businesses in the present market are focused on their core products/services and seek to outsource all other support activities. Mobility is a significant department—starting from fleet purchase to remarketing at a competitive price—for each segment in the value chain, unless an expert team is on the job, issues such as cost spikes, utilisation mismatches, irregularities in fleet maintenance, and risks of dips in residual value can crop up. Leasing the fleet enables hassle-free mobility, on-demand mobility, and fleet after-service facilities, amongst other benefits. This has driven the growth of the leasing market, given it a structure, and regulated the ecosystem. This study sheds light on the market size across passenger vehicle (PV) and light commercial vehicle (LCV) segments and provides sales/parc data for the total market and fleet and company car (true fleet) segments. The company car segment is discussed in detail, with a focus on the actual development and the growth potential of financial lease, operational lease, and outright purchase. The analysis takes into account historical data and current market conditions and insights and opinions from market participants to provide a five-year outlook on growth opportunities over 2018–2023. In addition to market data (PV and LCV) for new registrations and portfolio, the study provides actual competitor data (portfolio) for the leading leasing service providers in the country. Competitor data is available for both the leasing segments (operational and financial) for the base year, 2018. The evolution of any industry depends on factors, such as transformational trends that are linked to the macroeconomic factors of the region and the emerging business models that reflect innovation in mobility solutions, such as rental, car sharing, integrated mobility, and alternative power-train. The study covers the evolutionary trends expected to shape the market. For leasing providers and other companies that share the leasing ecosystem, interest lies in the growth opportunities that they need to leverage and the strategic imperatives, which will aid their pursuit of growth and success. Overall, the study provides a 360-degree understanding of the leasing space (region-specific) and offers a detailed account of the key trends, market overview, and outlook.
More Information
No Index No
Podcast No
Author Raghav Koundinya Vaduvoor
Industries Automotive
WIP Number ME9F-01-00-00-00
Is Prebook No
GPS Codes 9B02-A6