The leasing and rental industry is swiftly becoming a cornerstone of automotive mobility, with leasing providers, rental companies, car subscription services, and fleet management solutions playing pivotal roles within the ecosystem. These entities are adeptly responding to a growing desire among today’s consumers for alternatives to fleet ownership, which is expensive and burdened with operational complexities. This perspective is making the leasing and rental domain an increasingly attractive option for new-age consumers. Is your team adapting to evolving customer preferences to capitalize on growth opportunities in the era of leased vehicles?
The current landscape is revealing unprecedented growth avenues, particularly in electric vehicle (EV) leasing and used car leasing. Technological disruptions across vehicle connectivity, telematics, and the integration of data analytics and artificial intelligence (AI), are playing a transformative role. Furthermore, rebounding vehicle sales and the reopening of workspaces are fueling corporate and private leasing. Attention is now turning to regional macroeconomic factors, with many organizations eyeing regional alliances. Innovative business models, like app-based vehicle subscriptions, are gaining traction, benefiting both established players and newcomers alike. How is your organization harnessing technological disruptions to drive innovation within the leasing and rental ecosystem?
TELEMATICS AND FLEET MANAGEMENT: COMPANIES SETTING THE STAGE FOR AUTOMOTIVE LEASING EVOLUTION
The leasing and rental industry’s momentum would not have been possible without telematics service providers (TSPs) and fleet management solutions. TSPs are enhancing vehicle connectivity, which is enabling lucrative use-cases such as video telematics and advanced driving assistance systems (ADAS). Similarly, fleet management solutions are simplifying remote fleet diagnostics and bringing unified platforms for automobile management. Here’s a glimpse of companies leading this transformative shift:
Telematics
Revv: The India-based car rental company has partnered with a technology firm, Mobileye, to implement ADAS across its fleets. This collaboration has resulted in a remarkable 74% decrease in accident rates across Revv’s vehicles.
Calamp: A leading telematics and IoT service provider, connecting 20 million devices and serving 730,000 subscribers globally, Calamp has pioneered intelligent solutions to enhance fleet visibility and traceability.
How are you engaging in strategic partnerships with TSPs to enhance your leasing fleet solutions?
Fleet Management
IMS: This company has established itself as an industry leader in fleet management by harnessing advanced algorithms and Big Data analytics to redefine in-vehicle safety and the overall driving experience.
Element Fleet Management: With a strong focus on lift trucks and tractors, Element serves a diverse range of clients from many industries, demonstrating the viability of fleet management across mobility segments.
Have your teams integrated fleet management into your growth strategy, with a focus on long-term success?
LEADERS OF TODAY: COMPANIES AT THE FOREFRONT OF AUTOMOTIVE LEASING INNOVATION
While fleet management and telematics lead the charge in revolutionizing leasing and rental solutions, corporate light vehicle leasing emerges as a notable beneficiary. Given that light vehicles make up a significant portion of leased fleets and corporate leasing is gaining momentum among businesses, it’s valuable to acknowledge the companies driving progress in this domain and draw inspiration from their achievements.
Corporate Light Vehicle Leasing
ALD Automotive: ALD Automotive offers full-service leasing to small and medium enterprises (SMEs) and has built partnerships with 16 Original Equipment Manufacturers (OEMs), showcasing its ability to optimize large-scale vehicle leasing and drive growth.
Localiza&Co: The ecosystem leader has built its reputation on product diversity. Through successful mergers and acquisitions, it offers a wide range of services appealing to corporate players.
Which industry best practices are you implementing to excel in the corporate light-vehicle leasing arena?
THE ROAD AHEAD: TRANSFORMATIVE COMPANIES SHAPING TOMORROW’S LEASING ENVIRONMENT
With nearly 20% year-on-year growth for both used car and EV leasing, the future of the leasing lies in these promising domains. EVs are already on a transformative trajectory, while used car leasing has become increasingly prominent in the post-pandemic era. Mapping this evolving landscape is paramount for identifying industry best practices and strategic entry points:
Electric Vehicle Leasing
Tesla is transforming the EV rental space by offering various leasing options and an attractive user experience. Its mobile application allows customers to easily manage leases and make payments.
Zevvy’s large variety of leasing options are reshaping customer expectations and prompting competitors to adapt or risk failure.
What megatrends is your company capitalizing on to ensure sustained success in the EV leasing ecosystem?
Used Car Leasing
Lookers, one of the UK’s largest car dealer groups, is strategically enhancing its leasing business by leveraging its extensive portfolio of services, including repair, financing, and insurance.
AutoScout24, an online automotive marketplace, recently acquired two leasing portals. This strategic move showcases a compelling vertical market expansion strategy that many used car dealers are eyeing.
Is your growth strategy leveraging used car leasing to tackle competitive intensity in the leasing industry?
ARE YOU POSITIONING YOURSELF AS A ‘COMPANY TO ACTION’ SLATED FOR EXPONENTIAL GROWTH?
To stand out in the competitive leasing and rental landscape, proactive companies are focusing on new technologies, strategic planning, competitive analysis, product differentiation, and adaptation to regional and regulatory dynamics. Only they are emerging as a ‘company to action’, positioned for exponential growth. Is your company equipped with a robust growth pipeline to emerge as a ‘company to action’ in the fleet ecosystem?
ABOUT FROST & SULLIVAN
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