Consumers in Turkey Turn to Fleet Leasing Services as Awareness on Benefits Increases, Finds Frost & Sullivan
- Turkish market likely to witness highest growth rate among European countries
LONDON, June 19, 2013 /PRNewswire/ -- Growing awareness on the advantages of operational leasing is attracting new customers and sustaining the Turkish fleet leasing market. With only 22 per cent of the fleet market currently addressed, the untapped potential for operational leasing companies is immense.
New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of the Turkish Fleet Leasing Market, finds that new vehicle sales to operational leasing companies will increase from 69,000 in 2012 to 123,000 in 2018. The market in the country is likely to witness the highest growth rate in the region, overtaking several European countries.
"Benefits such as lower costs and superior operational fleet management have encouraged the adoption of fleet leasing services in Turkey," said Frost & Sullivan Automotive and Transportation Research Analyst Hikmet Cakmak. "High vehicle taxes in the country too, push bulk fleet buyers to choose operational leasing over outright purchases."
Currently, pharmaceutical, healthcare and fast-moving consumer good firms contribute the highest to market revenues. With operational leasing companies reaching out to small and medium enterprises and developing new business models, the operational leasing car parc is expected to reach 300,000 units by 2019. As a result, global players, investment funds, and private equities will be eyeing the promising Turkish operational leasing market.
On their part, leasing companies must explore partnerships and acquisitions to improve quality of service and introduce new mobility solutions. For instance, demand is expected to grow for hybrids and electrical vehicles even though diesel vehicles currently account for almost 90 per cent of the leasing market.
"While new business models and enhanced service quality will spur operational leasing, the lack of relevant legislations hampers market development," said Cakmak. "Regulations that restrict the leasing of light commercial vehicles add to the challenge. Operational leasing enterprises must educate and try to convince the government to enforce controlling mechanisms for operational leasing."
If you are interested in more information on Frost & Sullivan's study Strategic Analysis of the Turkish Fleet Leasing Market, please send an e-mail to Katja Feick, Corporate Communications, at katja.feick@frost.com, with your full contact details.
Strategic Analysis of the Turkish Fleet Leasing Market (M7FF-18) is part of the Automotive & Transportation Growth Partnership Service program. Frost & Sullivan's related research services include: Lightweight Strategies of Key Global Automotive OEMs, Analysis of the Russian Light Vehicle Dealership Market, The Role of Telematics in the European Insurance Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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