Frost & Sullivan: new lease options for EV needed
Operational leasing continues being the main solution for company car sourcing in Europe, confirms Frost & Sullivan. “The global company car leasing market has seen stable growth this year and is expected to conclude with a year-on-year (YoY) growth rate of 2.1% and unit sales of 7.8 million,” says Abishek Narayanan, F&S’s program manager.
Full-service operational leasing continues to be the preferred sourcing for corporate fleets, representing 59.1% of the total fleet leasing contracts sold. In 2020, the global company car leasing market is projected to grow at 3.9% (YoY), surpassing 8.1 million unit sales, primarily due to a push from operational leasing, adding 200,000 new contracts.
However, alternative mobility solutions are transforming the business. The traditional vendors have been slow or reluctant to develop solutions for EVs and have missed some of the opportunities generated by used car lease or private lease. According to Frost, these areas have a tremendous growth potential.
The fintech industry seems to understand this and are gradually offering viable alternatives to the traditional lease product. In addition, as the financing part of operational leases has become an on-balance component, there are new arguments for alternative sourcing methods.