BVRLA predictions for 2016
- Innovation to drive single digit percentage increase in traditional fleet leasing
- Double-digit growth from BVRLA members in the personal contract hire market
- Lease fleet will continue to reduce its average CO2 emissions to around 115 g/km and outpace wider new car market
- Shift from diesel to petrol and electric powertrains will gather pace
- Continued growth in demand for electrics and hybrids
BVRLA chief executive Gerry Keaney predicts demand from SMEs and consumers to drive leasing growth in 2016 after the SMMT figures showed an increase in new cars registered to fleets last year.
There were 2.6million new car registrations in 2015, which represents an increase of 6.3% on 2014. Fleet and business registrations also rose 9.8%, hitting an all-time high of 1.4million units. This means fleet and business sales were responsible for over 54% of all new registrations in 2015.
2015 was another good year for the retail and fleet motor industry. While the SMMT figures reveal impressive growth in new fleet registrations of 11%, the BVRLA also saw consistent growth in the fleet leasing sector, with member fleet sizes up around 11% on 2014.
This year we expect to see further growth, with a single digit percentage increase in the traditional fleet leasing market. This growth will be led by innovation in product design, flexibility and delivery.
The SME and consumer market will continue to drive most of the organic growth in the leasing market, and we expect to see significant double-digit growth from BVRLA members in the personal contract hire market.
As fleets seek lower running costs, demand for more efficient cars has grown, and the BVRLA expects that the lease fleet will continue to reduce its average CO2 emissions and outpace the wider new car market.
We also feel confident in predicting that the gradual shift from diesel to petrol and electric powertrains will gather pace, with diesel’s share of the new lease car market falling below 70%. This shift could accelerate still further if the government decides to add a discriminatory diesel surcharge to fuel duty
We predict that average leasing fleet emissions will drop to around 115 g/km CO2 this year, while the average for 2016 registrations will fall below 110g/km by year-end.
We also feel confident in predicting that the gradual shift from diesel to petrol and electric powertrains will gather pace, with diesel’s share of the new lease car market falling below 70%. This shift could accelerate still further if the government decides to add a discriminatory diesel surcharge to fuel duty.
Rental and leasing companies will continue to add hybrids and electric vehicles to their fleets, offering millions of motorists an affordable way to get behind the wheel of the latest, most fuel-efficient vehicles.
