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Fleet Services - UK - April 2016

"The popularity of fleet cars is at an all-time high, with increasing business confidence, rising employment rates, and low fuel costs boosting demand by large firms. However, with fleet car registrations contributing to 92% of the fleet services market and business cars making up just 8%, the fleet services industry as a whole continues to enjoy strong growth.”

Ambreen Ahmad, Research Analyst

This report looks at the following areas:

  • How can fleet service providers respond to falling business car registrations?
  • How will increasing demand for hybrid and electric cars impact the market
  • What key legislative changes will impact the fleet industry in the coming years?

For the purposes of this report, the definition of the market encompasses only fleet services provided for passenger cars used either wholly or in part for business purposes. These can be funded and expensed by a company or supported through mileage allowances, soft loans, and other forms of payment from the company to the employee.

The two categories included in this report are fleet cars - vehicles used by companies operating a fleet of 25 or more cars, including dealer demonstrators and Motability sales (a government-sponsored leasing operation for disabled people) - and business cars - vehicles operated by small businesses operating between one and 24 cars.

With such a high level of industry fragmentation it is not possible to review all fleet service providers in a report of this type. This report is not a directory of industry participants. The company profiles include a selection of operators rather than all of the largest industry participants.

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Table of contents

  1. Executive Summary

      • The market
        • Record fleet car registrations lead to strong growth in 2015
          • Figure 1: UK market for fleet services, 2010-15
        • Business car registrations fall as fleet car numbers continue to grow
          • Figure 2: Segmentation of UK new car registrations, by volume, 2011-15
        • Forecast fleet services market
          • Figure 3: Forecast UK market for fleet services, 2015-20
        • Market factors
          • Strong business investment, with signs of caution
            • Figure 4: Business investment in the UK, 2011-15
          • Private sector employment grows
            • Falling business milage
              • Low fuel costs provide fleets with light relief
                • Figure 5: Typical retail cost of fuel in the UK, 2011-15
              • Growing popularity of electric vehicles
                • Companies
                  • What we think
                  • Key Issues

                      • How can fleet service providers respond to falling business car registrations?
                        • How will increasing demand for hybrid and electric cars impact the market
                          • What key legislative changes will impact the fleet industry in the coming years?
                          • Introduction

                            • Definitions
                              • Methodology
                                • Abbreviations
                                  • Market positioning
                                    • The customer
                                      • The supplier
                                      • UK Economy

                                          • Overview
                                            • Figure 6: UK GDP Quarterly Development, 2005-2015
                                            • Figure 7: Quarters after GDP Peak, 1979, 1990 and 2008,
                                          • Inflation
                                            • Interest rates
                                              • House prices
                                                • Consumer spending
                                                  • Manufacturing
                                                    • Figure 8: UK Output, by Industry, 2008-2015,
                                                  • Business investment
                                                    • Figure 9: UK GFCF 2005-2015
                                                  • Imports
                                                    • Exports
                                                    • Market Factors

                                                      • Key points
                                                        • Business investment rising and fleets expanding
                                                          • Figure 10: Business investment in the UK, 2011-15
                                                        • Employment growth driving company vehicle demand
                                                          • Figure 11: Employment levels in the UK, 2011-15
                                                        • Company car tax changes push fleets towards low emission vehicles
                                                          • Falling fuel price temporarily eases pressure on fleet costs
                                                            • Figure 12: Typical retail cost of fuel in the UK, 2011-15
                                                          • Annual business mileage is going down
                                                            • Figure 13: Annual business mileage of four-wheeled cars, in England, 2010-14
                                                          • Demographic and geographic changes increase the need for cars
                                                            • Figure 14: Licensed cars in the UK, 2011-15
                                                          • Lease accounting changes alter contract hire model
                                                          • Market Size

                                                            • Key points
                                                              • Economic recovery reflected in rising fleet service revenues
                                                                • Figure 15: UK market for fleet services, 2010-14
                                                              • Fleets match steady growth in UK car parc
                                                                • Slow decline in company car benefit recipients bottoms out
                                                                  • Figure 16: Taxable company car benefit in kind recipients, in the UK, 2009-14
                                                              • Market Segmentation

                                                                • Key points
                                                                  • Fleet car registrations at record high while business car numbers fall
                                                                    • Figure 17: Share of UK total new car market 2015
                                                                    • Figure 18: Segmentation of UK new car registrations, by volume, 2011-15
                                                                  • Meeting SME needs
                                                                  • Market Trends

                                                                    • Key points
                                                                      • Used fleet values continue to climb
                                                                        • Figure 19: Average annual used car values of new fleet and lease cars, 2010-15
                                                                        • Figure 20: Seasonal variation in sales of new fleet and business cars, 2010-14
                                                                        • Figure 21: Monthly sales of new fleet and business cars, January to December 2015
                                                                      • Electric vehicle uptake rises in 20145
                                                                        • Figure 22: Hybrid and plug-in electric vehicle registrations, by volume, 2011-15
                                                                      • Importance of car features
                                                                        • Figure 23: Features important when buying a car, December 2014
                                                                      • Technology and innovation
                                                                        • Online fleet management tools
                                                                          • Connected cars to alter fleet landscape
                                                                            • Government support for connected and autonomous vehicles
                                                                            • Industry Structure

                                                                              • Key points
                                                                                • Structure by turnover
                                                                                  • Figure 24: Analysis of the financial structure of the automobile renting and leasing sector, 2014 and 2015
                                                                                • Structure by employment
                                                                                  • Figure 25: Analysis of the employment structure of the automobile renting and leasing sector, 2014 and 2015
                                                                              • ALD Automotive

                                                                                  • Recent company activity
                                                                                      • Figure 26: Financial analysis of ALD Automotive, 2010-14
                                                                                    • Company strategy
                                                                                    • Alphabet (GB)

                                                                                        • Recent company activity
                                                                                          • Figure 27: Financial analysis of Alphabet (GB), 2010-14
                                                                                        • Company strategy
                                                                                        • Arval UK

                                                                                            • Recent company activity
                                                                                              • Figure 28: Financial analysis of Arval UK, 2010-14
                                                                                            • Company strategy
                                                                                            • GE Commercial Finance Fleet Services/Arval

                                                                                                • Recent company activity
                                                                                                  • Figure 29: Financial analysis of GE Commercial Finance Fleet Services, 2010-14
                                                                                                • Company strategy
                                                                                                • Hitachi Capital Vehicle Solutions

                                                                                                    • Recent company activity
                                                                                                        • Figure 30: Financial analysis of Hitachi Capital Vehicle Solutions, 2011-15
                                                                                                      • Company strategy
                                                                                                      • Inchcape Fleet Solutions

                                                                                                          • Recent company activity
                                                                                                            • Figure 31: Financial analysis of Inchcape Fleet Solutions, 2010-14
                                                                                                          • Company strategy
                                                                                                          • Leaseplan UK

                                                                                                              • Recent company activity
                                                                                                                • Figure 32: Financial analysis of LeasePlan UK, 2010-14
                                                                                                              • Corporate strategy
                                                                                                              • LEX Autolease

                                                                                                                  • Recent company activity
                                                                                                                    • Figure 33: Financial analysis of Lex Autolease, 2010-14
                                                                                                                  • Company strategy
                                                                                                                  • Mercedes-Benz Financial Services

                                                                                                                      • Recent company activity
                                                                                                                        • Figure 34: Financial analysis of Mercedes-Benz Financial Services UK, 2010-14
                                                                                                                      • Company strategy
                                                                                                                      • Ogilvie Fleet

                                                                                                                          • Recent company activity
                                                                                                                              • Figure 35: Financial analysis of Ogilvie Fleet, 2011-15
                                                                                                                            • Company strategy
                                                                                                                            • Zenith Leasedrive

                                                                                                                                • Recent company activity
                                                                                                                                    • Figure 36: Financial analysis of Zenith-Leasedrive Group, 2010-15
                                                                                                                                    • Figure 37: Financial analysis of Zenith Vehicle Contracts, 2011-15
                                                                                                                                  • Company strategy
                                                                                                                                  • Forecast

                                                                                                                                    • Key points
                                                                                                                                      • Rising leasing rates not projected to halt fleet industry revenue growth
                                                                                                                                        • Figure 38: Forecast UK market for fleet services, 2016-20
                                                                                                                                      • Rapid growth in new registrations forecast to slow
                                                                                                                                        • Figure 39: Forecast segmentation of UK new fleet and business car registrations, 2015-19
                                                                                                                                      • Smaller fleets, new lease products and greater pooling expected
                                                                                                                                      • Further Sources and Contacts

                                                                                                                                        • Trade associations
                                                                                                                                          • ACFO (Association of Car Fleet Operators)
                                                                                                                                            • British Vehicle Rental & Leasing Association
                                                                                                                                              • Finance & Leasing Association
                                                                                                                                                • Institute of Car Fleet Management
                                                                                                                                                  • Retail Motor Industry Federation
                                                                                                                                                    • Society of Motor Manufacturers & Traders (SMMT)
                                                                                                                                                      • Trade magazines
                                                                                                                                                        • Fleet News
                                                                                                                                                          • Fleet World
                                                                                                                                                            • Motor Transport

                                                                                                                                                            Companies Covered

                                                                                                                                                            To learn more about the companies covered in this report please contact us.

                                                                                                                                                            Fleet Services - UK - April 2016

                                                                                                                                                            £995.00 (Excl.Tax)