THE LONG TERM RENTAL MARKET

Size: px

Start display at page:

Download "THE LONG TERM RENTAL MARKET"

Julian Boone
6 years ago
Views:

Letter THE LONG TERM RENTAL MARKET 4 th quarter 2016 1 2 + CONTENTS NEW PC REGISTRATIONS In Q4 as % Global Automotive Market LTR Market Corporate Market MAIN FIGURES 127 923 New long-term rentals put

9% Households 50% (52%) TOTAL MARKET 619 386 (1) Excluding short-term rentals, demonstration vehicles, selfregistrations 3 4 217 716 PC+CV registrations (1) 2016/2015 : +3.

1 Letter THE LONG TERM RENTAL MARKET 4 th quarter CONTENTS NEW PC REGISTRATIONS In Q4 as % Global Automotive Market LTR Market Corporate Market MAIN FIGURES New long-term rentals put on the road 2016 / 2015 : +2.4% A share of 59% in total company PC+CV registrations LCV Registrations 2016/2015 : +3.9% Households 50% (52%) TOTAL MARKET (1) Excluding short-term rentals, demonstration vehicles, selfregistrations PC+CV registrations (1) 2016/2015 : +3.5% PC Registrations 2016/2015 : +3.4% Short-term rental 7% (8%) Long-term rental data Macroeconomic VN LTR + Company 25% (25%) dont 19% LLD THE GLOBAL AUTOMOTIVE MARKET The (PC + LCV) light vehicle market has ended the year on a positive trend, rising again 3.5% in the 4 th quarter of On a cumulative basis, it recorded a significant increase of +5.7%, close to pre-crisis levels. The companies segment boosted this global market, posting a +6.8% rise in Q4 with nearly 359,000 registrations and representing a 57.9% share of the global LV market (compared to 56.1% in Q4 2015). The PC market, after a slight decline in Q3, increased by +3.4% in Q4, reaching closely the symbolic threshold of two million registrations YTD in 2016 (considering the total excluding Temporary Transit vehicles registrations ). While the number of tactical channels registrations increased in Q4 (+19%), the PC corporate fleet market also accelerated to a 4th quarter record, reaching 127,571 (+4,6% vs Q4 2015). Year-to-date, these fleets increased by 9%. The Light Commercial Vehicles market has continued its upward trend in Q4, registering a +3.9% growth compared to Q At year-to-date 2016, LCV registrations even exceeded 410 thousand, reporting a remarkable increase of + 8.1% vs Considering alternative powertrains, even if the electric vehicle market (PC + LCV) slowed down slightly during the fourth quarter (-1% compared to Q4 2015), 2016 will remain as an historic year (+23% growth) and authorities will encourage further buying such vehicles in 2017, thanks to the bonus and to the new thresholds values of tax deductions for depreciation of company vehicles. Finally, the market for hybrid vehicles (PC+LCV), which is less encouraged, fell by 4% in. THE LONG-TERM RENTAL MARKET (LTR) More and more companies attracted by LTR and Fleet management In, the number of light-duty vehicles put on the road in LTR, up for the 12th consecutive quarter, reached a record level for an endof-year period : 127,923 vehicles (+ 2.4% compared to Q ). On a yearto-date basis, this total grew by 11% and long-term rental companies contributed by 62.5% to the corporate fleet market, compared to 60.9% in The number of vehicles put in the road in the PC segment was also particularly important for a last quarter, totaling 94,855 vehicles, up + 2.5% (vs Q4 2015). On a year-to-date basis, they rose 12.9%. LCVs put on the road are also on the rise again in (+ 2.3%). At the same time, after nine quarters of growth, the returned vehicles (PC+LCV) were down in the 4th quarter (-2.0% vs Q4 2015), totalling 116,187 light vehicles, as extending the duration of contracts seem to have been favored by companies. In brackets : Q Source : CCFA Exhibit + Car Makers 18% (16%) Finally, growth in Fleet management was again very strong in Q % compared to Q4 2015, reaching a record level of 360,491 vehicles. Overall, the LTR stock thus totalled 1,655,045 vehicles in circulation (PC + LCV + SV) in, ie + 7.1% compared to Q SNLVLD Immeuble ARC en Ciel - Bâtiment B - 17 rue de la Vanne MONTROUGE Tél. : +33 (0) / + 33(0) SNLVLD LETTER / 01

2 127, ,923 LV put on the road +2.4% vs Q % of the LV corporate fleet market Nombre de véhicules légers mis à la route en LLD au cumul ,219 LV put on the road 63% of the LV corporate fleet market +11% vs Q FLUCTUATIONS IN LTR STOCK FLUCTUATIONS IN FLEET MANAGEMENT STOCK LCV-SV 33,068 (+ 2.3%) PC (+ 2.5%) WEIGHT OF LTR ON THE LV CORPORATE FLEET MARKET 59% 54% 61% 59% 59% LONG-TERM RENTALS PUT ON THE ROAD LTR STOCK FLEET MANAGEMENT STOCK 48% 51% vehicles +5.5% % Sources : SNLVLD - Traitement : BIPE vs Q vs Q THE CORPORATE MARKET 127, % vs 2015 PC +9.0% (+ EXHIBIT + CAR MAKERS) 91, % 219, % LV CORPORATE MARKET At year-to-date 2016, the PC corporate fleet market rises 9.0% compared to YTD 2015 LCV 90, % vs % (+ EXHIBIT + CAR MAKERS) 9, , % LV COMPANY MARKET 358, % +9.7% (SHORT-TERM RENTAL) 35, % (TOTAL COMPANY MARKET) 255, % (SHORT-TERM RENTAL) 3, % (TOTAL COMPANY MARKET) 103, % vs Q DATA vs 2015 THE SNLVLD Founded in 1978, the Syndicat National des Loueurs de Voitures en Longue Durée (SNLVLD) represents commercial companies that engage in the long-term rental of vehicles in France. SNLVLD s members reprensent 97% of the sector s activity in France. The long-term rental of vehicles (passenger cars and commercial vehicles) has established its legitimacy in the corporate sector, since it provides a flexible solution to the organisational and management needs of companies. It provides significant support to the automotive industry.

3 LONG-TERM RENTAL DATA NEW REGISTRATIONS LTR STOCK Nomber of % versus stock ALTERNATIVE FUEL VEHICLES * Change versus the same period the previous year , % 8.6% , % 13.3% , % 16.7% , % 12.7% ,923 (p) 9.9% 2.4% (p) données provisoires Nomber of Chage over the quarter FLEET MANAGEMENT Change since the start of current year the last 12 months ,226, % +3.2% +3.2% ,238, % +0.9% +3.8% ,264, % +3.1% +4.3% ,282, % +4.6% +5.0% ,294,554 (p) +0.9% +5.5% +5.5% (p) provisional data Immatriculations VP + VU marché automobile (CCFA) Mises à la route LLD, VP+VU Electric 7, Hybrid Petrol Hybrid Diesel ** Petrol + Diesel 17,427 ** 1, Nomber of the quarter Change since the start of the current year / Q the last twelve months / Q , % 10.6% 10.6% , % 3.6% 13.9% ,198 * 4.3% 8.1% 16.5% ,347 (p) 2.1% 10.3% 16.8% ,491 (p) 2.6% 13.2% 13.2% THE SNLVLD S MEMBERS Fleet Services SNLVLD LETTER / 03

TOTAL STOCK MANAGED 1,655,045 TOTAL STOCK MANAGED LTR (p) Fleet Management(p) total (p) TOP 10 : VEHICLES ALD 278,286 177,262 455,548 DIAC 218,628 117,331 335,959 ARVAL 290,216 12,895 303,111

9,688-9,688 VEHIPOSTE (1) 53,387-53,387 FORD LEASE (1) 18,011 321 18,332 TOTAL 1,294,554 360,491 1,655,045 Total stock - Top 11-31.12.16 (p) provisional data.

Sources : SNLVLD data processed by BIPE * VOLKSWAGEN GROUP FLEET SOLUTIONS ** NATIXIS CAR LEASE Reminder Q3 2016 1 RENAULT CLIO 4 + soc RENAULT CLIO 4 + soc 2 PEUGEOT 208 PEUGEOT 208 3 RENAULT MEGANE

4 TOTAL STOCK MANAGED 1,655,045 TOTAL STOCK MANAGED LTR (p) Fleet Management(p) total (p) TOP 10 : VEHICLES ALD 278, , ,548 DIAC 218, , ,959 ARVAL 290,216 12, ,111 CREDIPAR 199,678 24, ,065 LEASEPLAN 95,597 9, ,989 ALPHABET 87,660-87,660 VOLKSWAGEN* 53,600-53,600 FAL 17,569 15,172 32,741 ATHLON 24,151 3,067 27,218 NATIXIS** 19, ,466 CMCIC 9,688-9,688 VEHIPOSTE (1) 53,387-53,387 FORD LEASE (1) 18, ,332 TOTAL 1,294, ,491 1,655,045 Total stock - Top (p) provisional data. (1) Data already recorded in the top 12 companies. Sources : SNLVLD data processed by BIPE * VOLKSWAGEN GROUP FLEET SOLUTIONS ** NATIXIS CAR LEASE Reminder Q RENAULT CLIO 4 + soc RENAULT CLIO 4 + soc 2 PEUGEOT 208 PEUGEOT RENAULT MEGANE RENAULT MEGANE 4 PEUGEOT 308 RENAULT KANGOO 5 RENAULT KANGOO PEUGEOT CITROËN C4 + PICASSO RENAULT CAPTUR 7 CITROËN C3 CITROËN C4 + PICASSO 8 RENAULT CAPTUR RENAULT SCENIC + GD 9 CITROËN BERLINGO CITROËN C3 10 VOLSWAGEN GOLF CITROËN BERLINGO A NEW ASSOCIATE MEMBER : DataNeo is a French company specialized since 2007 in the valorization of strategic marketing data. It positions itself as the new strong player in data marketing and statistics related to vehicles and their owners. With 60% organic growth over the last financial year, 15 people and 3.5 M, the company supported by BPI France was rewarded by the Finance Innovation Pole in DataNeo holds official licenses from the French Home Office, For SIV data, (statistical and nominal perimeter); It can multiply the power of SIV data thanks to its key partnerships on new data in the automotive ecosystem (All types of vehicles with a numberplate in France). In addition to providing data, the company also offers a digital ecosystem to use them, including 2 examples: CarMarket, an unprecedented extranet allowing the market to access real-time statistics on vehicle registration in France and their movements, every night, only a few minutes after receipt of data from the Home Office. The Channel sales approach is supported by all observers, particularly on sales financed by LLD and LOA. NeoFleet officially launched on 1 February, looks like the «Google» on the fleets, in the increasingly strategic market of sales to companies. A powerful, ergonomic and transverse tool for the sales force. The operational team of data scientists enables the rapid realization of the company s innovations, whose stated ambition is leadership in the provision of tactical and strategic data in the Automotive and Banking / Insurance sectors. Customers : Among the major car manufacturers, 40% of the top 30 brands are already working with DataNeo. 30 major clients come from finance and insurance. BIPE Set up in 1958, on the initiative of the public authorities and major French companies, the BIPE provides economic analyses and strategic forecasts to private campanies and public authorities. SNLVLD LETTER / 04

MACRO-ECONOMIC CONTEXT Economic activity improved slightly in Q4 The French economy, which achieved moderate growth in GDP in Q3 (+0.

Activity improved particularly in the services sector, as the accommodation and food services segment recovered in particular.

INDUSTRY REBOUND In November 2016, manufacturing output rose sharply (+ 2.3%), while at the same time it declined slightly compared to November 2015.

In December, expectations were at the highest level since 2011 in the industry sector. They gained 8 points in one year in construction in November 2016.

5%), thanks to good financing conditions.

appropriations (83% in Q3). Access to investment loans remained high (95%). As for very small companies, investment credits increased to 85% (compared with 82% in Q3).

4%) according to INSEE, despite a slight inflation increase. Moreover, consumer confidence is improving thanks to the improving labor market.

As regards foreign trade, aeronautical deliveries should again be buoyant in early 2017.

5 MACRO-ECONOMIC CONTEXT Economic activity improved slightly in Q4 The French economy, which achieved moderate growth in GDP in Q3 (+0.2% according to INSEE), experienced a stronger rebound in Q4 (+0.5% according to BIPE forecasts). Activity improved particularly in the services sector, as the accommodation and food services segment recovered in particular. However, in the construction sector, business leaders reported in December that their order books were less filled than normal. INDUSTRY REBOUND In November 2016, manufacturing output rose sharply (+ 2.3%), while at the same time it declined slightly compared to November Moreover, capacity utilization rates were at the end of 2016 at the highest level in eight years. BUSINESS CLIMATE Managers opinion on business outlook continue to be positive. In December, expectations were at the highest level since 2011 in the industry sector. They gained 8 points in one year in construction in November BUSINESS INVESTMENT The financial environment remains favorable and investment by non-financial companies has increased again in Q4, according to INSEE forecasts (+0.5%), thanks to good financing conditions. ACCESS TO CREDIT REMAINS HIGH According to the Banque de France, SMEs access to cash loans remained virtually stable in Q4 : 84% of them got completely or largely requested appropriations (83% in Q3). Access to investment loans remained high (95%). As for very small companies, investment credits increased to 85% (compared with 82% in Q3). RISING CONSUMPTION After two quarters of stagnation, households consumer spending rose again in October (+0.8%) and in November (+0.4%) according to INSEE, despite a slight inflation increase. Moreover, consumer confidence is improving thanks to the improving labor market. OUTLOOK Domestic demand will drive French growth again in The economy will also benefit from more activity in the Euro zone, boosting exports. As regards foreign trade, aeronautical deliveries should again be buoyant in early Business investment should continue to be encouraged by low interest rates and households investment will also increase. According to INSEE, the carry over in annual growth for 2017 could reach +1.0% by midyear 2017, as a year earlier. However, inflation will gradually recover, due to the energy component, and the purchasing power of households will gradually decelerate. At the same time, companies margin rate will stabilize. Sme / Business / Leaders Décembre ,3 Industrial production last quarter A SLOWER GROWTH IN FRANCE AND EUROPE IN 2017 GDP - YEARLY EVOLUTION (%) FRANCE EURO ZONE 2.1 BIPE FORECASTS Consuption Novembre 2016 INVESTMENT ACCES TO CREDIT THE SNLVLD S ASSOCIATED MEMBERS SNLVLD Immeuble ARC en Ciel - Bâtiment B - 17 rue de la Vanne MONTROUGE Tél. : +33 (0) / + 33(0) SNLVLD LETTER / 05

The corporate market s recovery was confirmed in 2014, although to a lower level than 2012

The corporate market s recovery was confirmed in 2014, although to a lower level than 2012 La Lettre du A retenir au 4 ème trimestre 2012 The long-term rental market 4th Quarter 2014 In collaboration with The long-term rental market (*) 4th quarter 2014 1. The automotive market 2. The corporate