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Chinese Light Vehicle Leasing Growth Opportunities

  • Report

  • 40 Pages
  • January 2022
  • Region: China
  • Frost & Sullivan
  • ID: 4988989

Digital Retailing Drives the Leasing Business Amid Economic Recovery from the COVID-19 Pandemic

Companies view vehicle leasing as a solution to the growing number of challenges they face in their mobility needs. These include challenges associated with vehicle funding, fleet maintenance, and, more importantly, residual risk handling. Businesses focus on their core products or services and seek to outsource support activities. Mobility is a significant department involving a wide range of activities, from fleet purchases to remarketing. Unless an expert team is on the job, issues such as cost spikes, utilization mismatches, fleet maintenance irregularities, and risks of residual value dips can crop up in each value chain segment. Leasing the fleet enables hassle-free on-demand mobility and fleet after-service facilities, along with a host of other benefits. The rising demand for these services and facilities drives leasing market growth, gives it a structure, and regulates the ecosystem.

This study sheds light on the market size across the passenger vehicle (PV) and light commercial vehicle (LCV) segments and provides sales/parc data for the total market as well as the fleet and company car (true fleet) segments. It discusses the company car segment in detail, focusing on the development and growth potential of the financial leasing, operational leasing, and outright purchase segments. The analysis considers historical data, current market conditions, and insights and opinions collected from market participants to provide a five-year outlook on growth opportunities. In addition to market data (PV and LCV) for new registrations and portfolios, the study provides actual competitor data (portfolio) for leading leasing service providers in the country. Competitor data is available for both operational and financial leasing segments for the base year (2020).

The evolution of any industry depends on the transformational trends linked to the region’s macroeconomic factors and emerging business models that reflect innovations in mobility solutions, such as rentals, car sharing, integrated mobility, and alternative powertrains. The study covers these evolutionary trends that is expected to shape the market and provides a 360-degree understanding of the leasing space in China.

Table of Contents

1. Strategic Imperatives
  • Why is it Increasingly Difficult to Grow?
  • The Strategic Imperative 8™
  • The Impact of the Top Three Strategic Imperatives on China’s Light Vehicle Leasing Market
  • Growth Opportunities Fuel the Growth Pipeline Engine™
2. Growth Environment
  • Findings
  • Key Growth Metrics - New Fleet and Company Car Registrations
  • Growth Drivers
  • Growth Restraints
3. Research Scope and Definition
  • Research Scope, Objectives, and Methodology
  • Definitions
4. PESTLE Analysis
  • Political, Economic, Societal, Technological, Legislative, and Environmental (PESTLE) Analysis
5. Market Analysis
  • Total Market and Company Car Analysis
  • Corporate Leasing Forecast
  • Private Leasing Forecast
  • Corporate Leasing Share by Powertrain
  • Corporate Leasing Share by Sales Channel
  • Corporate Leasing Share by Brand Class
6. Market Competition Analysis
  • Market Competition
7. Growth Opportunity Universe
  • Growth Opportunity 1: New Product Development will Strengthen Leasing Companies’ Position
  • Growth Opportunity 2: EV Leasing Launch for Fleet Emission Control
  • Growth Opportunity 3: Competitive Strategy for the Used Car Leasing Market for Cost-conscious Customers
  • Conclusions and Outlook
8. List of Exhibits