2012-09-28 12:00:05 - Vehicle leasing market boosted by the London Olympic Games
The UK vehicle leasing market has suffered drastically from the downturn in the UK economy over the past few years. Levels of vehicle leasing and rentals have been significantly lower due to the decline in domestic and international tourist numbers along with a weaker demand, with both factors causing downward pressure on industry revenue and profitability.Market revenue is estimated to decline at a compound annual growth rate (CAGR) of 3.2% in the five years through 2012-13, to total Â£8.43 billion. Declines have been relatively steady through the past five years, with a small increase of 1.8% in 2011-12, due to the royal wedding in April 2011.Compared to other European markets, the UK market is relatively well developed with a high
proportion of company car over private car registrations, and as share of GDP.Changes to the tax regime (eg, in 2002) over the years have put pressures on market growth, with incentives to choose cars with lower environmental impact and smaller cars. Compared to elsewhere in Europe though, tax levels are still low.The largest segment of the industry is the car rental segment, which includes car hire for a period of less than 30 days. This segment will account for 41% of industry revenue in 2012-13, up from 38% in 2011-12 due to greater demand from the London Olympic Games.This segment´s size varies between regions due to the large number of international tourists that rent cars from London firms and major airports. Although the size of this segment has contracted over the past five years due to declines in international tourist numbers, it has maintained a stable proportion of industry revenue.The UK market landscape is relatively consolidated at the top, but has a long tail´ of smaller specialists and niche players. The largest operator is Lex Autolease (a recent merger of two major players), followed by LeasePlan.For more information on the vehicle leasing market, see the latest research: Vehicle Leasing MarketFollow us on Twitter @CandMResearch
Click for news details: www.companiesandmarkets.com/News/Automotive-and-Parts/Vehicle-le ..
Browse all Automotive and Parts C&M News www.companiesandmarkets.com/News/Automotive-and-Parts/?aCode=f3f ..
Companiesandmarkets.com is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles, Companiesandmarkets.comâs online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.