Fleet Services - UK - January 2015

EXECUTIVE SUMMARY
The market
Operator revenue growth shifts up a gear in 2014
Figure 1: UK market for fleet services, 2010-14
Business car registrations up sharply in past year
Figure 2: Segmentation of UK new car registrations, by volume, 2010-14
Fleet market projected to drive ahead
Figure 3: Forecast UK market for fleet services, 2015-19
Market factors
Tax burden rising for company cars
Figure 4: BIK taxation rate across vehicle carbon emission bands, 2013-16
Temporary fall in fuel costs provides fleets with light relief
Figure 5: Typical retail cost of fuel and fuel duty level in the UK, 2010-14
Companies
Hitachi Capital continues rapid expansion
HG Capital merges operators to create top ten leasing business
What we think
INTRODUCTION
Definitions
Methodology
Abbreviations
Market positioning
The customer
The supplier
UK ECONOMY
Overview
Inflation
Interest rates
House prices
Consumer spending
Manufacturing
Business investment
Imports
Exports
MARKET FACTORS
Key points
Business investment rising and fleets expanding
Figure 6: Business investment in the UK, 2012-14
Employment growth driving company vehicle demand
Figure 7: Employment level in the UK, 2010-14
Company car tax changes push fleets towards low emission vehicles
Figure 8: BIK taxation rate across vehicle carbon emission bands, 2013-16
Falling fuel price temporarily eases pressure on fleet costs
Figure 9: Typical retail cost of fuel and fuel duty level in the UK, 2010-14
Annual business mileage is going down
Figure 10: Annual business mileage of four-wheeled cars, in England, 2009-13
Demographic and geographic changes increasing the need for cars
Figure 11: Licensed cars in the UK, 2010-14
Lease accounting changes may alter contract hire model
MARKET SIZE
Key points
Economic recovery reflected in rising fleet service revenues
Figure 12: UK market for fleet services, 2010-14
Fleets match steady growth in UK car parc
Figure 13: The UK fleet & business car parc, 2010-14
Slow decline in company car benefit recipients bottoms out
Figure 14: Taxable company car benefit in kind recipients, in the UK, 2008-13
MARKET SEGMENTATION
Key points
Sharp growth in business car registrations continues
Figure 15: Segmentation of UK new car registrations, by volume, 2010-14
MARKET TRENDS
Key points
Used fleet values continue to climb
Final quarter sales boost impacts seasonal registration variation
Figure 16: Seasonal variation in sales of new fleet & business cars, 2010-14
Figure 17: Monthly sales of new fleet & business cars, January to December 2014
Online fleet management tools prominent among new products
Electric vehicle uptake shoots up in 2014
Figure 18: Hybrid and plug-in electric vehicle registrations, by volume, 2010-14
Connected cars to alter fleet landscape
INDUSTRY STRUCTURE
Key points
Rising number of operators indicates improved trading conditions
Figure 19: Analysis of the changes in the UK automobile renting & leasing industry, 2010-14
Structure by turnover
Figure 20: Analysis of the financial structure of the automobile renting & leasing sector, 2013 and 2014
Structure by employment
Figure 21: Analysis of the employment structure of the automobile renting & leasing sector, 2013 and 2014
ALD AUTOMOTIVE
Recent company activity
Figure 22: Financial analysis of ALD Automotive, 2009-13
ALPHABET (GB)
Recent company activity
Figure 23: Financial analysis of Alphabet (GB), 2009-13
ARVAL UK
Recent company activity
Figure 24: Financial analysis of Arval UK, 2009-13
GE COMMERCIAL FINANCE FLEET SERVICES
Recent company activity
Figure 25: Financial analysis of GE Commercial Finance Fleet Services, 2009-13
HITACHI CAPITAL VEHICLE SOLUTIONS
Recent company activity
Figure 26: Financial analysis of Hitachi Capital Vehicle Solutions, 2010-14
INCHCAPE FLEET SOLUTIONS
Recent company activity
Figure 27: Financial analysis of Inchcape Fleet Solutions, 2009-13
LEASEPLAN UK
Recent company activity
Figure 28: Financial analysis of LeasePlan UK, 2009-13
LEX AUTOLEASE
Recent company activity
Figure 29: Financial analysis of Lex Autolease, 2009-13
MERCEDES-BENZ FINANCIAL SERVICES
Recent company activity
Figure 30: Financial analysis of Mercedes-Benz Financial Services UK, 2009-13
OGILVIE FLEET
Recent company activity
Figure 31: Financial analysis of Ogilvie Fleet, 2010-14
ZENITH LEASEDRIVE
Recent company activity
Figure 32: Financial analysis of Leasedrive Group, 2009-13
Figure 33: Financial analysis of Zenith Vehicle Contracts, 2010-14
FORECAST
Key points
Rising leasing rates not projected to halt fleet industry revenue growth
Figure 34: Forecast UK market for fleet services, 2015-19
Rapid growth in new registrations forecast to slow in 2015
Figure 35: 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
Trade magazines