Features
19 Oct 21

How to build your fleet supplier network in Latin America

Accomplishing efficient fleet operations requires building a network of dependable suppliers and this first means knowing who the main players in your region are. 

In this feature on Latin America, we will highlight the principal automakers, vehicle fleet management and leasing companies, telematics firms, and driver safety organizations in the region. 

As you know, the largest investment you will face is the acquisition of vehicles. This can be accomplished through direct purchases from auto manufacturers (aka OEMs), through long-term leasing agreements or through short-term car rental contracts.

Although there are several suppliers throughout the region, highlighted here are the leading players in Latin America’s largest vehicle markets.

Automakers

In terms of OEMs, those dominating in Brazil are Stellantis (mostly Fiat & Jeep), General Motors (mostly Chevrolet), and Volkswagen, while in Mexico they are Nissan, GM, and VW. 

Meanwhile, VW, Toyota, and Renault are popular in Argentina, Renault, GM, and Mazda in Colombia, GM, Kia, and Suzuki in Chile, and Toyota, Hyundai, and Kia are the OEMs to look out for in Peru, according to Global Fleet’s Wikifleet pages

Overall, the best-selling vehicle brands in Latin America include Chevrolet, VW, Fiat, Toyota, Nissan, and Jeep. 


Leading OEMs in Latin America (source: Global Fleet / Fleet LatAm)
 

While a vast majority (some 85%) of the fleet vehicles (7 million +) in the region have been acquired through direct purchases or financial leasing agreements, some 15% (just over 1 million) have been obtained through full-service leasing contracts.

Another 500,000 or so in non-funded fleet management agreements are seen throughout the region, Fleet LatAm chairman Pascal Serres said at the Global Fleet Conference in May.

Leasing – Fleet Management

Regarding the top players in the region, Unidas, Localiza, and Movida hold the largest market shares in Brazil. The companies also offer car rentals in the country. 

Meanwhile, Element Fleet Management, Casanova Renting, and LeasePlan have the largest fleets in Mexico, RDA Renting and AutoCorp (Argentina), Mitta, Tattersall Europcar, and Salfa Rent (Chile), Renting Colombia, Traxall, and ALD Automotive (Colombia), Arval, ALD Automotive, and Mareauto (Peru).

Overall, the leading multinational players covering Latin America are ALD Automotive based out of France, Element Fleet Management (Canada), LeasePlan (the Netherlands), and Arval (France), according to the Fleet LatAm Directory 2020.

There are two alliances in the region, one being the ALD Automotive-Wheels alliance which also collaborates with Auto Corp and Arrend Leasing and the Element-Arval alliance which has teamed up with RDA Renting. While Wheels is a major player in the United States providing vehicles in Puerto Rico, Guatemala based Arrend Leasing covers various countries in Central America.

Telematics and the rest

Other vendor networks fleet managers must keep abreast on in Latin America include those related to telematics, safety courses, insurance, auto parts, repair shops, gasoline, motor oil, and mobility solutions.

Among the telematics related companies offering services in the region are Calamp, Galooli, Geotab, Golsat, Lytx, MiX Telematics, Mobileye, Octo Telematics, Targa Telematics, Teletrac Navman, Trimble, and Webfleet Solutions, and some of the safety course offerings include those from CEPA Mobility Care and eDriving. 

Now that you know who most of the key players in the region are, start making calls to discover which of those have the best offerings for your corporate strategy. Visit the Global Fleet online directory for support. 

Getting out and about

Finally, make sure to continuously build your network by getting out there and meeting people. 

Besides taking advantage of social network portals such as LinkedinFacebookTwitter and Instagram, there are several events (conferences, expos, workshops, training sessions) taking place every year in Latin America. The ones we would like to highlight is the Fleet LatAm Conference which just took place on 21 September, and the Fleet LatAm Business Networking Group which will host its next meeting on 30 November. Join us for insights, the exchange of knowhow, and a great chance to further build your network and make new contacts.


Snapshot with suppliers and fleet managers following a Fleet LatAm advisory board meeting at the 2019 Fleet LatAm Conference in Mexico City. (source: Fleet LatAm)

Owing to the COVID-19 health crisis, face-to-face events have been put on hold but they are expected to be back shorlty.  See you all soon! 

Authored by: Daniel Bland