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Nov. 13, 2012 /PRNewswire/ -- The mature European fleet leasing market is exploring new avenues of growth. Leasing companies are becoming multi-mobility solution providers, rather then just providing vehicles to lease. Companies are concentrating on improving operations and growing their product and service portfolio to gain incremental business. Most fleet leasing companies are expected to venture into corporate car sharing programmes.
New analysis from Frost & Sullivan (
Strategic Analysis of the European Fleet Leasing Market, finds that the automotive fleet leasing market is expected to grow at a compound annual growth rate of 6.2 per cent during the period 2011-2018. Operational leasing is expected to account for 62 per cent of fleet leasing sales by 2018, which is 55 per cent up from 2011 levels.
Fleet leasing will move from Total Cost of Optimisation to Total Cost of Mobility, with leasing companies offering mobility solutions over base-level vehicle leasing.
"The mature fleet leasing market is re-inventing itself, offering multi-modality solutions and entering into new business models like car sharing," notes Frost & Sullivan Automotive & Transportation Consulting Manager,
Mohamed Mubarak. "In future, fleet leasing is expected to become a one-stop shop for all mobility solutions."
The fleet leasing companies will integrate both short-term and long-term travel options along with the integration with public transport modes. For example, they will tie up with travel portals such as Expedia and Travelocity to enhance customer's mobility experience. Fleet leasing companies will also help in managing and providing parking solutions and car sharing for corporates.
However, the current economic crisis in
Europe has slowed fleet renewals and new purchases. In some countries, companies have surrendered or extended their contracts to 41-45 months. To address this situation, leasing companies have started offering 'Flexi Leasing' solutions which allow client companies to opt for short-term vehicle leases for between 12-18 months.
"Flexi-leasing will evolve as an attractive option for end-customers facing financial volatility," concludes Mubarak. "It will also be offered as a base level service, with other multi-modal solutions, as an option and this is expected to evolve as a scalable business model."