Lease Renewal Proves Successful in Long Run
Revised Article:
In the first quarter, the auto market experienced a slump, with over 3,500 fewer cars registered compared to the same period last year. The private sector took the biggest hit, recording 16,000 fewer vehicles and a market share of 53%, down 2.5 percentage points from the first four months of 2024. Yet, it's the long-term rental market that's shining with a 16% growth, accounting for approximately 19,500 more registrations than seen in '24. So, what's driving this growth?
While the operators in the long-term rental sector haven't all been top performers, some have soared high. Dataforce reports that the captive operators segment registered a remarkable 84% growth, amounting to 74,000 vehicles. On the other hand, the remaining lessors registered 68,000 units, which is a stark contrast of 18,000 fewer cars compared to '24 (-18%).
Salvatore Saladino, Country Manager Italia of Dataforce, suggests that this growth in the captive channel might balance the push by car manufacturers for self-registrations, whether for personal use or rental purposes. He points out that the current share of km0/demo is one of the lowest in the last 15 years.
Eye-catching Trends
Official numbers are lacking, but there seems to be a slowdown among corporate clients in the rental sector, with smaller clients holding steady or even showing improvement. Antonio Stanisci, Commercial Director of Ayvens, echoed this sentiment, stating that while their smaller client activities have been doing quite well, even better than '24, corporate client deliveries and orders have seen a delay or partial slowdown since November 2024, when the new fringe benefit law was under discussion.
Closing Thoughts
While the exact contributors to the 16% growth in long-term car rental registrations are not explicitly detailed, it's reasonable to consider factors such as the rebound of domestic and international travel, technological advancements making rental services more accessible, evolving travel preferences that favor flexible options, and the growing popularity of electric vehicles.
When looking at the performance of different players in the long-term rental sector, it's clear that both captive operators, often backed by major car manufacturers, and independent rental companies, including peer-to-peer platforms, have their unique strengths and appeal to different market segments.
The captive operators in the automotive industry are significantly contributing to the growth in the long-term rental market, as reported by Dataforce, with an impressive 84% growth recorded in the first quarter. Meanwhile, the finance sector may also play a role, as the slowdown among corporate clients in the rental sector might be due to the new fringe benefit law, which was under discussion since November 2024.
