Recommendations for effective fleet management in the APAC region
The APAC is a complex region and is in the early stages of becoming an integrated region when it comes to fleet. The leasing product is not developing at the same pace across countries and fleets operate under various schemes within the organizations, such as externally funded with a broad level of outsourcing, including chauffeur services, cash allowances, transportation services, and more.
At Ayvens, we often see misconceptions about leasing. Many companies opt for owning instead of leasing cars as they are not used to compare the economics accurately; others use cash allowance when leasing is more tax efficient and economical, offering better control with reduced liabilities risks.
There are a few steps we recommend international companies with fleets in the APAC to take:
- Only in the case of fleets with at least 5 markets and 500+ cars, it justifies having a regional fleet manager position
- Build an effective setup with a fleet procurement specialist in each country, with economies of scale leveraged across the regions
- Have a strong governance in place to challenge and influence local stakeholders on the best funding practices
- Look at online reporting to control the cost of usage of vehicles and manage fleet CO2 in the region
- Look at total cost of ownership instead of just focusing on rental costs in the region
- There are many opportunities to reduce CO2 in the region by selecting models with hybrid engine
- Consider contracted mileage with modifications during the life of the contract to adjust rental to usage
- Think EV and sustainability: there are many opportunities to switch to EV in some markets like China, Japan and Thailand
At Ayvens we offer regional contract opportunities and fleet management support to our customers in the region. We help you choose the right cars and contract solutions to suit your needs, reduce costs and fleet CO2 emissions, and keep your drivers safe on the road.