After a particularly difficult situation for the size of leased vehicle fleets in 2021, the situation remains tense this year. This is primarily due to the difficulties manufacturers are experiencing in producing vehicles in Europe and around the world, as a result of the shortage of semiconductors. The vehicles leaving the factories are then given priority for delivery to private customers who have been waiting months for them. These direct customers mean higher margins for the car brands.
As well as lengthening delivery times, these disruptions have led to an increase in the price of vehicles, in line with inflation, which increases the cost of raw materials. To increase their chances of receiving vehicles, leasing companies are therefore working closely with manufacturers, through buy-back arrangements (with the car brand eventually taking over). The war in Ukraine and the various confinements in China, which have disrupted the production systemThe situation is expected to worsen further before a hoped-for improvement at the end of the year.More fleets than in 2021
" In view of current demand, there is no no worries on the fleet" However, Cédric Douls, Marketing and Sales Director forEuropcar. He added: " the vehicle return period is underway and we have extended the duration of buy-back agreements, which will enable us to cover requirements" . " The strategy is to keep vehicles for longer. At Enterprise, we invest in buying vehicles and wait longer before selling them on the second-hand market." also confides Guirec Grand-ClémentManaging Director France of Enterprise.
The pressure is even greater for electric vehicles, even though they are not yet the most popular choice with business customers. Here too, hire companies are competing with private buyers, as well as with companies that must comply with the directives of the LOM as soon as their fleet exceeds 100 vehicles. In order to secure their supplies and gain a foothold with manufacturers, some hire companies are not doing things by halves. After an order for 100,000 Teslas in October 2021American company Hertz has signed a contract with Sweden's Polestar for 65,000 electric vehicles, with deliveries starting in Europe this spring.
Massive orders for electric vehicles
The entire industry is now committed to being more environmentally responsible. " It's better to anticipate future regulations and electrify the fleet as quickly as possible" explains Cédric Douls at Europcar. " As well as green vehicles, we all own recent or very recent internal combustion vehicles that consume less fuel than before." says Guirec Grand-Clément. This need is all the greater now that 'clean' vehicles will be required to enter the new low-emission zones (ZFE) in major cities such as Paris.
All these factors have a direct impact on rental prices, which have risen sharply over the last two years. In March, the comparator Carigami announced that an increase of 60% in the total cost of a rental this year compared with March 2021, after +35% last year due to the pandemic (*). Between March 2022 and March 2019 (*), sales are expected to soar by 75%. " The increase in fares is real and reflects the pressure on vehicle availability and rising costs" says Pascale Roque, Managing Director of Hertz France. The professionals are advising business and leisure customers to make their bookings as far in advance as possible.
Even if it is difficult to make predictions, given the many unknown factors - who would have imagined that war would break out on Europe's doorstep after two years of Covid - short-term hire companies are optimistic about 2022, playing the flexibility and adaptability card to the hilt. And they are now counting on a return to pre-pandemic activity levels by 2024 at the latest. The Rugby World Cup and, a fortiori, the Paris 2024 Olympic Games are hoped to be positive events that will help boost the rental market.
The growth in car-sharing for businesses, local authorities and other public sector organisations should also help to make this a reality. an additional cog in the wheel in the coming years. As with the leisure segment, the notion of use is beginning to take precedence over ownership in the management of business vehicles. With leasing companies resolutely committed to the new challenges of mobility.
(*) More focused on leisure, the comparison is made by Carigami on the basis of a 7-day rental of a city car and two fill-ups of unleaded 95 petrol (with a 45-litre tank).
