Fleets set for fundamental change
IBIS Global Summit 2018 delegates were told that ‘autonomous driving and increased sharing behaviour will fundamentally change the automotive and mobility industry.’
The message came from Philipp Enderle, consultant, strategy operations, Deloitte, as he explained how fleet management will be a key enabler for the electric and autonomous future of mobility. He explained how fleet management extended the value chain of OEM and captive business, whilst additional fleet management services add additional revenue and profit components.
Prior to Philipp taking to the stage, his colleague Dirk Utman, senior manager, risk advisory, automotive, Deloitte provided an overview of the organisation’s automotive centre of expertise which includes areas such as business growth, operational excellence, finance, technology and people. ‘There will be challenges but the opportunities related to new technology are emerging, for example around data and how it is managed and accessed,’ said Dirk.
Looking specifically at fleet management in the North American and European markets, Philipp highlighted how, ‘today fleet management is big but it will be huge in the future,’ he said.
Philipp told how the size of the corporate channel in the region was smaller than in Europe in relative terms, highlighting how despite there being more registrations in North America than the EU27 (19.3 million versus 15.8 million) there remained a ‘huge private retail share’ of circa 80%. In the US, Deloitte’s research showed the market size for fleet management services as being roughly between Germany and France, whilst the Canadian market for fleet management services is about half the size of Spain’s.
Focusing on the fleet management company competition in the US, Philipp pointed to Europe’s largest and the world’s second largest fleet leasing company, Leaseplan as an example pointing to its 1,620,000 cars under its management and with an average growth of 4.5% per annum since 2010. According to Philipp, Leaseplan’s new strategy is any car, any time, anywhere, highlighting a shift in its mindset to become a mobility provider. He highlighted how fleet service income is of growing importance to fleet management companies. ‘Much of their service provision is outsourced,’ said Philipp highlighting a growing opportunity for service providers.
‘Many new players are entering the market from each side, so fleet management and captive organisations are changing their approach to market to become suppliers of mobility solutions,’ said Philipp.
In closing, Philipp pointed to how fleet management companies will evolve into providers of multi-modal mobility which in turn will create greater commercial opportunities in financing and related services; vehicle related services; and driver related services.
The IBIS Global Summit 2018 is partnered by 3M, AkzoNobel, Audatex, Axalta, Enterprise Rent A Car, Fix Auto and Symach.