The market from the fleet and customer perspective

A total of almost 14,000 companies in Poland used car fleet management services that is full service leasing and associated services. The shift on the market in terms of the number of cars was 5.3% y-o-y, That is less than the change noted after the first six months of 2009. Mid-year, it still seemed that car lease for companies had a chance to achieve at least one-third of the previously noted growth. It turned out, however, that as far as a 5.6% growth was reached after H1 (as compared with the end of 2008), H2 saw a drop of - 0.3%. As a result, the year ended with a lower number of company cars managed by an external provider, than after the first six months, gaining only 6,600 cars over the corresponding period of the previous years (130,932 in mid-2009). The final result of 130,535 cars was mainly the outcome of a cut in pure fleet management and a low number of new contracts. Over 3,000 cars were in pure fleet management last year, which represents a 17.3% drop y-o-y.
For those looking for optimistic information, let us recall that the leasing market in general slowed down by 30.2% y-o-y in 2009 – according to the Polish Leasing Association – and vehicle leasing deteriorated even by 34.9% y-o-y. Yet, the CFM market gained + 5.3%. This shows that, although the CFM sector has not achieved an impressive number of new contracts, the majority maintained the status quo in the atmosphere of a crisis.

Service portfolio structure
Among companies using CFM services, the majority purchased full service leasing. 96,000 cars were managed under this option at the end of 2009. This represents a 6.3% increase y-o-y.
The portfolio of pure fleet management shrank unexpectedly by 17.3% y-o-y. The number of managed cars decreased to 17,541 in 2009. This was the first time since monitoring was introduced, when such a high number of customers terminated or withdrew from pure fleet management deals. Until now this service has been popular. At the end of 2008, there were 21,193 cars in pure fleet management.
In the researched period, the share of cars in operational lease with limited service increased. At the end of 2009, however, 12,792 cars were in operational lease with limited service which represents a drop by 42.3%. Customers tended to chose car lease the least often although as compared with the corresponding period of the previous year, the number of leased cars significantly increased.
At the end of December 2009, CFM operators had 4,129 leased cars per the total of 130,535 managed cars. This is a 22.3% increase y-o-y.

The market from the service provider perspective

Full service leasing or long-term car rental was offered by 52 providers in December 2009, according to our estimates. The research was conducted among 39 largest providers, including some who disclosed the data anonymously (requesting that their company name is not disclosed in the reports). Dispersion, typical for services and markets in maturation phase, prevails on the Polish CFM market.
The group of key car fleet management services providers in Poland includes: Masterlease, LeasePlan and Arval Service Lease Polska. These three companies operate a joint total of 43,188 cars (one-third of the domestic market, 33%). Masterlease (Futura Leasing and Prime Car Management) holds a 15% share in the market and operates 19,604 company cars, including as much as 10,643 in classic full service leasing. LeasePlan Fleet Management manages fleets of customers using 12,872 company cars, including 10,294 cars in full service leasing; it holds 10% of the market. Arval Service Lease Polska, has been active on the Polish market for ten years. It manages a fleet of 10,712 cars, including 9, 723 in full service leasing. The company has an 8% share in the market.
Other key players on the domestic market include: ING Car Lease (8,190 cars, including 7,330 in full service leasing), Carefleet (6,015 cars, including 5,068 in full service leasing)
and ALD Automotive Polska, (5,068 cars, almost all in full leasing service – 5,063).
Other companies leading on the CFM market include: BRE Leasing with a 4% share and 4, 979 cars, including 3,601 in full service leasing and Transpost, 4,934 cars, all in full service leasing. Daimler FM, who, according to the Polish Association of Car Rental and Leasing (PZWLP) had 4,747 cars at the end of Q3, despite a significant drop in the car number as compared with 2-3 years ago, continues to be among the market leaders with a 4% share.
The nine largest CFM providers between them operate 77,121 cars of the 130,000 leased cars. Other providers service 32% of the market and a group of several companies working in the Toyota Corpo Cars Management has jointly 9% of market share. At the end of 2009, companies from the Toyota Corpo Cars Management group operated 11,724 cars (figures from 10 companies).


Source: KerallaResearch Institute

The CFM market Summary is based on data submitted by car fleet management companies. Results were presented by 39 suppliers, including some reserving the right to remain anonymous (without giving the company’s name). Presented as of the end of Q4 2009.

Commentary by:
Katarzyna Pydych
General Director/Researcher
in cooperation with Piotr Lewandowski
Market Analyst

KerallaResearch Institute
Wrocław, February 2010
kontakt@keralla.pl
www.keralla.pl
Tel. 071 778 21 35


Definitions used in this statistics by KerallaResearch Institute
Full service leasing (FSL) = vehicle lease agreement under which the lesser takes the risk of value of the vehicle at the lease end and provides services whose costs are covered by the lessee in the, usually flat, payment for the package of managed services (minimum package: financing and service with at least 3 other services i.e.: insurance, cards, tires, assistance/ replacement car etc. Customer may add more management services). Contracts over 24 months.
Pure fleet management = managing vehicles for the customer without leasing (managing suppliers, car service, coordinating tyre exchange, usually also managing damages etc.).
Operational lease with limited service = vehicle lease agreement under which the lessee or supplier takes the risk of value of the vehicle at the lease end with few services which are not in a package that is a Full Service Leasing. Contracts over 24 months (not to be confused with FSL, car rental and lease).
Lease – transferring the use of a vehicle for a fixed duration of 6 to 24 months. It does not qualify as operational leasing under tax regulations (not to be confused with typical rent a car, renting a car for up to 6 months).