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While the Company Car Market in the UK Experienced a Fourth Consecutive Year of Decline in 2020, a Recovery is Expected in 2021
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Vehicle leasing is seen as a solution to the growing number of challenges faced by companies with regard to their mobility needs. These include challenges associated with vehicle funding, fleet maintenance, and more importantly, residual risk handling. Businesses are focused on their core products/services and seek to outsource support activities. Mobility is a significant department, involving a wide range of activities from fleet purchases to remarketing. For each segment in the value chain, unless an expert team is on the job, issues such as cost spikes, utilization mismatches, irregularities in fleet maintenance, and risks of dips in residual value can crop up. Leasing the fleet enables hassle-free on-demand mobility and fleet after-service facilities, along with a host of other benefits. The growing demand for these services and facilities 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 the passenger vehicle (PV) and light commercial vehicle (LCV) segments and provides sales/parc data for the total market as well as the fleet and company car (true fleet) segments. It discusses the company car segment in detail, focusing on the development and the growth potential of the financial leasing, operational leasing, and outright purchase segments. The analysis takes into account historical data, current market conditions, and insights and opinions collected from market participants to provide a five-year outlook on growth opportunities. In addition to market data (PV and LCV) for new registrations and portfolios, 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 (2019). The evolution of any industry depends on factors such as the transformational trends linked to the macro-economic factors of the region and the emerging business models that reflect innovation in mobility solutions, such as rentals, car sharing, integrated mobility, and alternative powertrains. The study covers these evolutionary trends that are expected to shape the market and provides a 360-degree understanding of the leasing space in the United Kingdom. It also provides a market overview and a market outlook.Author: Abishek Narayanan
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