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Fleet Services - UK - April 2016

Fleet Services - UK - April 2016

"The popularity of fleet cars is at an all-time high, with increasing business confidence, rising employment rates, and low fuel costs boosting demand by large firms. However, with fleet car registrations contributing to 92% of the fleet services market and business cars making up just 8%, the fleet services industry as a whole continues to enjoy strong growth.”

Ambreen Ahmad, Research Analyst

This report looks at the following areas:

How can fleet service providers respond to falling business car registrations?
How will increasing demand for hybrid and electric cars impact the market
What key legislative changes will impact the fleet industry in the coming years?


EXECUTIVE SUMMARY
The market
Record fleet car registrations lead to strong growth in 2015
Figure 1: UK market for fleet services, 2010-15
Business car registrations fall as fleet car numbers continue to grow
Figure 2: Segmentation of UK new car registrations, by volume, 2011-15
Forecast fleet services market
Figure 3: Forecast UK market for fleet services, 2015-20
Market factors
Strong business investment, with signs of caution
Figure 4: Business investment in the UK, 2011-15
Private sector employment grows
Falling business milage
Low fuel costs provide fleets with light relief
Figure 5: Typical retail cost of fuel in the UK, 2011-15
Growing popularity of electric vehicles
Companies
What we think
KEY ISSUES
How can fleet service providers respond to falling business car registrations?
How will increasing demand for hybrid and electric cars impact the market
What key legislative changes will impact the fleet industry in the coming years?
INTRODUCTION
Definitions
Methodology
Abbreviations
Market positioning
The customer
The supplier
UK ECONOMY
Overview
Figure 6: UK GDP Quarterly Development, 2005-2015
Figure 7: Quarters after GDP Peak, 1979, 1990 and 2008,
Inflation
Interest rates
House prices
Consumer spending
Manufacturing
Figure 8: UK Output, by Industry, 2008-2015,
Business investment
Figure 9: UK GFCF 2005-2015
Imports
Exports
MARKET FACTORS
Key points
Business investment rising and fleets expanding
Figure 10: Business investment in the UK, 2011-15
Employment growth driving company vehicle demand
Figure 11: Employment levels in the UK, 2011-15
Company car tax changes push fleets towards low emission vehicles
Falling fuel price temporarily eases pressure on fleet costs
Figure 12: Typical retail cost of fuel in the UK, 2011-15
Annual business mileage is going down
Figure 13: Annual business mileage of four-wheeled cars, in England, 2010-14
Demographic and geographic changes increase the need for cars
Figure 14: Licensed cars in the UK, 2011-15
Lease accounting changes alter contract hire model
MARKET SIZE
Key points
Economic recovery reflected in rising fleet service revenues
Figure 15: UK market for fleet services, 2010-14
Fleets match steady growth in UK car parc
Slow decline in company car benefit recipients bottoms out
Figure 16: Taxable company car benefit in kind recipients, in the UK, 2009-14
MARKET SEGMENTATION
Key points
Fleet car registrations at record high while business car numbers fall
Figure 17: Share of UK total new car market 2015
Figure 18: Segmentation of UK new car registrations, by volume, 2011-15
Meeting SME needs
MARKET TRENDS
Key points
Used fleet values continue to climb
Figure 19:Average annual used car values of new fleet and lease cars, 2010-15
Figure 20:Seasonal variation in sales of new fleet and business cars, 2010-14
Figure 21: Monthly sales of new fleet and business cars, January to December 2015
Electric vehicle uptake rises in 20145
Figure 22: Hybrid and plug-in electric vehicle registrations, by volume, 2011-15
Importance of car features
Figure 23: Features important when buying a car, December 2014
Technology and innovation
Online fleet management tools
Connected cars to alter fleet landscape
Government support for connected and autonomous vehicles
INDUSTRY STRUCTURE
Key points
Structure by turnover
Figure 24:Analysis of the financial structure of the automobile renting and leasing sector, 2014 and
2015
Structure by employment
Figure 25: Analysis of the employment structure of the automobile renting and leasing sector, 2014
and 2015
ALD AUTOMOTIVE
Recent company activity
Figure 26: Financial analysis of ALD Automotive, 2010-14
Company strategy
ALPHABET (GB)
Recent company activity
Figure 27: Financial analysis of Alphabet (GB), 2010-14
Company strategy
ARVAL UK
Recent company activity
Figure 28: Financial analysis of Arval UK, 2010-14
Company strategy
GE COMMERCIAL FINANCE FLEET SERVICES/ARVAL
Recent company activity
Figure 29: Financial analysis of GE Commercial Finance Fleet Services, 2010-14
Company strategy
HITACHI CAPITAL VEHICLE SOLUTIONS
Recent company activity
Figure 30: Financial analysis of Hitachi Capital Vehicle Solutions, 2011-15
Company strategy
INCHCAPE FLEET SOLUTIONS
Recent company activity
Figure 31: Financial analysis of Inchcape Fleet Solutions, 2010-14
Company strategy
LEASEPLAN UK
Recent company activity
Figure 32: Financial analysis of LeasePlan UK, 2010-14
Corporate strategy
LEX AUTOLEASE
Recent company activity
Figure 33: Financial analysis of Lex Autolease, 2010-14
Company strategy
MERCEDES-BENZ FINANCIAL SERVICES
Recent company activity
Figure 34: Financial analysis of Mercedes-Benz Financial Services UK, 2010-14
Company strategy
OGILVIE FLEET
Recent company activity
Figure 35: Financial analysis of Ogilvie Fleet, 2011-15
Company strategy
ZENITH LEASEDRIVE
Recent company activity
Figure 36: Financial analysis of Zenith-Leasedrive Group, 2010-15
Figure 37: Financial analysis of Zenith Vehicle Contracts, 2011-15
Company strategy
FORECAST
Key points
Rising leasing rates not projected to halt fleet industry revenue growth
Figure 38: Forecast UK market for fleet services, 2016-20
Rapid growth in new registrations forecast to slow
Figure 39: Forecast segmentation of UK new fleet and business car registrations, 2015-19
Smaller fleets, new lease products and greater pooling expected
FURTHER SOURCES AND CONTACTS
Trade associations
ACFO (Association of Car Fleet Operators)
British Vehicle Rental & Leasing Association
Finance & Leasing Association
Institute of Car Fleet Management
Retail Motor Industry Federation
Society of Motor Manufacturers & Traders (SMMT)
Trade magazines
Fleet News
Fleet World
Motor Transport
UK B2B
Trade research
Informal
Formal
Desk research
Consumer research
Sampling and weighting
Definitions
Qualitative Research
Further Analysis
Statistical forecasting

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