Snapshot: Fleet management in Argentina
Argentina is home to the third largest automobile fleet in Latin-America, considering new car registration and sales. In 2017, sales were up 30% year-over-year and the performance so far this year is pointing toward a record of one million units.
Although sales are on the rise, when it comes to commercial fleet management, there is much room for growth. While the sector represents no more than 12% (being 11% corporations and 1% government) in Argentina, the rest of the continent falls somewhere between 20% and 25%.
Below is a snapshot of the management and leasing companies throughout the country, according to information compiled with the support Global Fleet LatAm advisory board chairman Pascal Serres.
Pascal Serres (SOURCE: Nexus Communication)
To date, “approximately 11 companies are offering fleet management services without funding,” says Serres
The largest is Edenred which manages approximately 13,000 cars, followed by RDA with 6,000 (6,600 with renting), Auto Care with 2,450, and then Gestion BA and ABC LatAm which manage some 1,500 vehicles apiece, explained Serres who is also the founder and managing director of France-based consultancy firm Moby-D.
Among the other companies are Fleet Services, AutoCorp and Avis Budget with approximately 900, 500, and 450 cars, respectively.
In terms of full-service leasing providers, AutoCorp, RDA and Avis Budget have about 450 cars apiece. “Very few cars under full-service leasing (around 2,000 overall) are being funded,” said Serres.
Meanwhile, “international fleet management company Ariza is eying Argentina right now,” LatAm director Carmen Davila told Global Fleet in an interview. It could be a good move considering there are no international lessors directly present in the country.
Car Registrations (five-year outlook)
From 2013-15, the number of vehicle registrations in Argentina dropped 39%. In 2013, a total of 963,917 vehicles were registered (being 684,379 passenger cars and 279,538 commercial vehicles), followed by 613,848 vehicles in 2014 (432,696 passenger and 181,152 commercial), and 587,643 in 2015 (416,322 passenger and 171,321 commercial).
However, the market has been recovering since then, with the 2015-2017 period posting a 22.8% increase in registrations, according to data from CountryEconomy.com
While 2016 rose to 591,070 registrations for the year (431,696 passenger and 159,374 commercial), 2017 reported 721,411 registrations, of which 518,637 were passenger cars and 202,774 were commercial vehicles. Growth looks to be continuing on into this year (2018).
Among the car brands which see more than 20% of its sales being for the commercial market are Mercedes-Benz, Kia, Audi, and BMW. Those with less than 20% of its sales being for the commercial market are Hyundai, Citreon, Peugeot, Fiat, Chevrolet, and Chery (the latter being no more than 2%).