Features
30 Dec 19

Element Fleet Management Mexico kicks off 2020 in high gear

Canada-based Element Fleet Management will close 2019 with nearly a quarter of the long-term vehicle leasing market in Mexico.

The company’s fleet grew by some 26% year-over-year in the third quarter, according to marketing director Miguel Peña who has confirmed a fleet size of 62,000 units. “We will close 2019 with our foot on the accelerator,” says Mr. Peña.

Moreover, considering Element managed 40,000 vehicles in 2018, its fleet size jumped by 55% year-over-year, according to Global Fleet studies.

In the same comparison, the total number of leased vehicles in Mexico identified by Global Fleet in the last quarter of 2019 was 283,395, approximately 56% more than 2018. With this, Element holds a 22% share of the market. 

Overall Market

Although new car sales in Mexico fell 7.1% year-over-year in 2018 and by approximately 6% during the first three quarters of 2019, vehicle leasing has been increasing by some 8% per year over the last two years.

Compared to purchasing, leasing provides for more flexible payment terms, something that is sought after in the current economic scenario in the country where there are still some long-term uncertainties.

Leasing is a good option for those seeking to optimize vehicle transportation costs, says Peña.

Among the other main leasing providers in Mexico are Volkswagen Financial Services, LeasePlan, Jet Van, ALD Automotive, Ariza, Casanova Renting, and TIP Mexico.
With a total car and LCV park of some 32.3 million, Mexico is home to Latin America’s second largest vehicle fleet, only behind Brazil which has approximately 65.3mn.


Top 10 leasing companies in Mexico,  by fleet size (source: Fleet LatAm)


For more on the regional leasing companies and every relevant contact in Latin America, read Fleet LatAm Directory 2020

 

Authored by: Daniel Bland