Table of Contents
2016 Outlook of Fleet Vehicle Leasing Market in Europe : 50% of Fleet Growth to Come from Operating Lease in 2016
The outlook study provides an overview of the fleet vehicle leasing market (passenger cars and light commercial vehicles) across Europe. In addition to commentary on key highlights in 2015, the study provides forecast measurements for 2016 for the size of the fleet market and funding choices in the company car market (operational lease, financial lease, and outright purchase). It also highlights the key trends shaping the industry grouping them into four categories—growth channels, competitor development, fleet operator efficiency, and mobility for all, with 2016 predictions provided for each category.
2015 Key Highlights
The fleet vehicle leasing market strengthened in 2015 with all parts of Europe playing a part in the growth, with businesses continuing to replace ageing fleets and business confidence improving.
Robust Growth in PV and LCV registrations across Europe Total new vehicle sales were strong in 2015 with a combined % growth in PV and LCV registrations. Across the Eurozone, markets have grown for consecutive months albeit in absolute terms, the volumes remain low given levels registered till end of 2015 only just surpassed that recorded in 2010 immediately after the economic crisis.
Fleet Making Further Gains in Market Share The fleet sector continued to increase its influence on new PV and LCV sales across Europe in 2015; Frost & Sullivan research across European markets (including Russia and Turkey) indicates fleet having a % share.
Consolidation at the Top The acquisition of GE Capital’s European business by Arval in 2015 has put further distance between the four largest leasing providers and the rest. While size is not a guarantee for business success, having scale in operations does help with meeting needs of global clients while at same time providing economies in terms of buying power with manufacturers and service provider partners.
Continued adoption of Procurement-led Fleet Buying Strategy Large fleet operators especially have continued through 2015 to adopt a Procurement Category approach to fleet buying decisions and take more control of the vehicle sourcing strategy. In turn, providers have had to deliver greater transparency in their cost calculation and pricing and, where multi-bidding is deployed, transparency in the pricing is a requirement to win business on every vehicle.
Growing Importance of Usage over Ownership Usage continues to increase at a high pace across Europe and in 2015 strong growth was recorded in primarily mature European markets for small business and private lease sales. While much of the private market comprises new customers, company car drivers eligible for a perk vehicle but taking cash instead of car are being attracted to a personal contract to eliminate concerns over Benefit In Kind taxation, and have greater value for money and vehicle choice.
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