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Operating Lease to drive the Fleet
Leasing Growth in India, Finds Frost &
Sullivan
Research PREVIEW for
Strategic Analysis...
Key Findings
Company Car Market
• The company car market contributed to approx. 8% of the total new registration of passen...
Fleet Management
Source: Frost & Sullivan analysis.
Company Car and Leasing Market—Segmentation
Total Market
Fleet Registr...
Vehicle as a perk
Vehicle as a
“Tool for Trade”
Business Vehicle
Leasing
By End Usage By Vehicle Type
Passenger Vehicles
P...
Source: Frost & Sullivan analysis.
Low High
Low
High
Certainty
Impact
These are the factors with the greatest impact
on Fl...
2015 Post-2020
Future Business Models – Fleet & Leasing Firms
Fleet
Leasing
Company
Vehicle
Leasing
Fleet
Management
Short...
Partial List of Companies Interviewed
Source: Frost & Sullivan research.
Company Contact Designation
Arval Head of Sales
L...
The Full Analysis Features the Following Content
Section Slide Numbers
Executive Summary 7
Research Scope, Objectives, and...
Section Slide Numbers
Vehicle Leasing based on Usage– Active Fleet size and Forecast 50
Premium Vehicle Leasing– Active Fl...
Key Questions This Study Will Answer
Source: Frost & Sullivan analysis.
What is the size of Company Car, Operating Lease, ...
Interested in Full Access? Connect With Us
Anita Chandhoke
Corporate Communications
P: +91 80 67028020
E: achandhoke@frost...
Our Global Client Base
40+ Offices Provide Perspective, Coverage and Service
Others, 40.0%
By Region
250,000 SME & Global ...
Our Industry Coverage
Automotive
&
Transportation
Aerospace and Defense Measurement and
Instrumentation
Information and
Co...
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Frost & Sullivan - Analysis of India Fleet and Leasing market - 2015

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Increasing awareness and growing demand shows promising signs for the Indian Fleet & Leasing Industry

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Frost & Sullivan - Analysis of India Fleet and Leasing market - 2015

  1. 1. Operating Lease to drive the Fleet Leasing Growth in India, Finds Frost & Sullivan Research PREVIEW for Strategic Analysis of Indian Fleet & Leasing Market
  2. 2. Key Findings Company Car Market • The company car market contributed to approx. 8% of the total new registration of passenger vehicles in 2015 • Outright purchase dominate the market. Operating lease which is expected to grow at a 25% CAGR (excluding the cab leasing market) from 2015-2020 is expected to drive the vehicle leasing market growth. • There are approximately 15 players in the organized market who offer one or more fleet leasing services - operating lease, financial lease or fleet management services 1 On Road Leased Vehicles in India • The Indian passenger vehicle fleet & leasing market is an untapped market with an active fleet of approx. 52,300 passenger vehicles in the organized market • The average lease period for a passenger vehicle is approximately 3 years • The residual value of the vehicle depends on the lease tenure, the OEM brand of the leased vehicle and the purpose for which vehicle was leased (tool for trade or personal use) and may vary from 20% to 60% of the vehicle’s original price 2 Operating Lease • Around 2.75 lakh vehicles have been leased under operating lease so far. • As of 2015, operating lease is a Rs. 1120 crore market has an active fleet of around 42,100 passenger vehicles in the organized market • LeasePlan, ALD Automotive, Sundaram Finance and Arval contribute to more than 69% of the total market 3 Financial Lease • As of 2015, financial lease is a Rs. 370 crore market has an active fleet of around 10,200 passenger vehicles in the organized market • Auto Infrastructure Services Ltd (OAIS) and Magma Auto Lease contribute to more than 92% of the total financial lease market 4
  3. 3. Fleet Management Source: Frost & Sullivan analysis. Company Car and Leasing Market—Segmentation Total Market Fleet Registration Company Cars Rental Cars Dealer Manufacturer Operational Leasing Financial Leasing Outright Purchase Cars used for Auto Expo, exhibition, R&D, Advertising etc. Cars used for display, replacement vehicles, test drives in dealerships Companies providing self drive cars, taxi Fleets etc. Cash & Credit Purchase Consumer Leasing Retail Registration
  4. 4. Vehicle as a perk Vehicle as a “Tool for Trade” Business Vehicle Leasing By End Usage By Vehicle Type Passenger Vehicles Passenger Cars Utility Vehicles Vans Light Commercial Vehicles Passenger Carriers Goods Carriers Company Car and Leasing Market—Segmentation Source: Frost & Sullivan analysis. Vehicle as a part of CTC Consumer Leasing Private Leasing
  5. 5. Source: Frost & Sullivan analysis. Low High Low High Certainty Impact These are the factors with the greatest impact on Fleet & Leasing Market in 2015 and forward. Increasing Awareness GST Implementation Improvement in Fleet Analytics & Reporting More captives (NBFCs) offering leasing services Increase in number of Vehicle models launched Growth in Short Term Rental market Growth in Cab Leasing Market Trends Increasing awareness about benefits of leasing and progress in GST implementation opens up new opportunities for vehicle Leasing
  6. 6. 2015 Post-2020 Future Business Models – Fleet & Leasing Firms Fleet Leasing Company Vehicle Leasing Fleet Management Short TermLong Term Source: Frost & Sullivan analysis. LCV Leasing Self Drive Cars for Tourism Passenger Vehicle Leasing Fleet Leasing Company Fleet Management Short Term Rentals Corporate Car Sharing Website – Fleet Consulting & Service comparison • The vehicle leasing companies currently provide only operating lease, finance lease and fleet management Services. Few firms also provide LCV leasing, corporate car sharing and short term rental but it is not prevalent across the market • In the next 5-7 years, we would see Indian leasing firms expanding their product portfolio to short term rentals, LCV leasing, corporate car sharing and other services • Companies might come up with website which compares the fleet & leasing market players in terms of product portfolio, services provided and the cost of availing the services
  7. 7. Partial List of Companies Interviewed Source: Frost & Sullivan research. Company Contact Designation Arval Head of Sales LeasePlan General Manager - Sales & Marketing ALD Automotive Deputy CEO TranzLease President ORIX Operations Manager Magma Auto Lease National Head SMAS Auto Leasing Assistant Manager- Sales Tata Capital Assistant Vice President - Sales & National Product Manager Sundaram Finance Head of Leasing (South Region) Ford Fleet Business Centre India Head for Corporate Sales Fortpoint Leasing Solutions Executive Vice President - Leasing & Fleet Management
  8. 8. The Full Analysis Features the Following Content Section Slide Numbers Executive Summary 7 Research Scope, Objectives, and Methodology 14 Definitions and Segmentations 21 Indian Automobile Industry Overview 28 Indian Fleet & Leasing Market Overview 38 Indian Fleet & Leasing Market 39 PESTLE 40 Market Trends 41 Fleet & Leasing - Market Scenario 42 Fleet & Leasing - Business Prospects 43 Consumer Trends 44 Indian Fleet & Leasing Market Analysis 45 Company Car – New Registration and Forecast 46 Total Vehicles Leased – Active Fleet size and Forecast 47 Operating Lease– Active Fleet size and Forecast 48 Financial Lease– Active Fleet size and Forecast 49
  9. 9. Section Slide Numbers Vehicle Leasing based on Usage– Active Fleet size and Forecast 50 Premium Vehicle Leasing– Active Fleet size and Forecast 51 Key Market Players and Service Offerings 52 Service Offerings and Fleet & Leasing Value Chain 53 Key Suppliers – Operational & Financial Lease 54 Key Suppliers – Market Share 55 Key Supplier Offices & Growth Opportunities 56 External Challenges – Drivers & Restraints 61 Taxes & Vehicle Registration 66 Mega Trends 72 Cab Leasing 74 LCV Leasing – Active Fleet size and Forecast 75 Car Rental 77 Corporate Car Sharing Services 78 Car Pooling Services 79 Telematics and Fleet Management Service Range 81 Future Mobility Business Models 83 Conclusion, Recommendation and Future Outlook 84 The Full Analysis Features the Following Content (cont’d)
  10. 10. Key Questions This Study Will Answer Source: Frost & Sullivan analysis. What is the size of Company Car, Operating Lease, Finance Lease and Outright purchase market in India? What is the short-to-medium term outlook for the Indian Fleet & Leasing Industry? What are the main growth drivers and industry challenges? What is the business environment of the fleet and leasing market in the India? What are the dynamics and trends of the market? What is the structure of the Indian Fleet & Leasing Industry? Who are the key industry participants?
  11. 11. Interested in Full Access? Connect With Us Anita Chandhoke Corporate Communications P: +91 80 67028020 E: achandhoke@frost.com Research Authors Lead Analyst Neha Makdey Senior Research Analyst- Fleet & Leasing Automotive & Transportation Research Director Graeme Banister Director of Consulting – Fleet & Leasing Automotive & Transportation Facebook https://www.facebook.com/FrostandSullivan LinkedIn Group https://www.linkedin.com/company/frost-&-sullivan SlideShare http://www.slideshare.net/FrostandSullivan Twitter https://twitter.com/Frost_Sullivan Frost & Sullivan Events http://bit.ly/MvPRbQ GIL Community http://ww2.frost.com/gil-community
  12. 12. Our Global Client Base 40+ Offices Provide Perspective, Coverage and Service Others, 40.0% By Region 250,000 SME & Global Companies, 2 million executives North America, 95,000 Companies Europe 80,000 Companies Latin America 9,000 Companies South Asia 11,000 Companies Africa & Middle East 8,000 Companies Asia-Pacific 47,000 Companies
  13. 13. Our Industry Coverage Automotive & Transportation Aerospace and Defense Measurement and Instrumentation Information and Communication Technologies HealthcareEnvironment and Building Technologies Energy and Power Systems Chemicals, Materials, and Food Electronics and Security Industrial Automation and Process Control Automotive Transportation and Logistics Consumer Technologies Minerals and Mining

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