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Light Vehicle Leasing Market in Canada, Forecast to 2023

  • Report

  • 56 Pages
  • February 2020
  • Region: Canada
  • Frost & Sullivan
  • ID: 5004026

Company Car Leasing is Expected to Register a Stable Growth Over the Forecast Period as Corporate Firms Continue to Renew Fleets to Support Growing Business

Company cars are usually provided as tool-of-work vehicles in Canada. Growth in company cars was spurred by the growing demand for fleet vehicles from the industrial sector, which received a fillip from Canada's strong overall economic performance. Leasing, covering operational leasing and financial leasing, is the major sourcing channel in Canada. Operational leasing is the preferred leasing solution with larger corporate fleets favoring it because of its functional advantages.

Vehicle leasing is seen as a solution to the growing number of mobility challenges faced by companies, such as vehicle funding, fleet maintenance, and, more importantly, residual risk handling. Businesses in the current market conditions are focused on their core products and services and seek to outsource all other support activities. Mobility is a significant department - starting from fleet purchase to remarketing, at a competitive price - and for each of the segments in the value chain, unless an expert team is on the job, issues such as cost spikes, utilization mismatches, irregularities in fleet maintenance, and risks of dips in residual value can crop up. Leasing the fleet enables hassle-free mobility, on-demand mobility, and fleet after-service facilities, amongst other benefits. This has driven the growth of the leasing market, given it a structure, and regulated the ecosystem.

This study sheds light on the market size across passenger vehicle (PV) and light commercial vehicle (LCV) segments and provides sales and parc data for the total market and fleet and company car (true fleet) segments. The company car segment is discussed in detail, with a focus on the actual development and the growth potential of financial lease, operational lease, and outright purchase. The analysis takes into account historical data and current market conditions and insights and opinions from market participants to provide a five-year outlook on growth opportunities (over the 2018–2023 period). In addition to market data (PV and LCV) for both new registrations and portfolio, the study provides actual competitor data (portfolio) for the leading leasing service providers in the country.

Competitor data is available for both the leasing segments (operational and financial) for 2018, the base year. The evolution of any industry depends on factors such as transformational trends that are linked to the macroeconomic factors of the region and the emerging business models that reflect innovation in mobility solutions, such as rental, car sharing, integrated mobility, and alternative powertrain. The study covers these evolutionary trends that are expected to shape the market. For leasing providers and other companies that share the leasing ecosystem, interest lies in the growth opportunities that they need to leverage and the strategic imperatives that aid in their pursuit of growth and success. Overall, the study provides a 360-degree understanding of the leasing space (region-specific) and offers a detailed account of the key trends, market overview and outlook.

Table of Contents

1. Executive Summary
  • Key Findings
  • Market Engineering Measurements - New Fleet & Company Car Registrations
  • Market Engineering Measurements - Fleet & Company Car Parc

2. Research Scope and Definition
  • Research Scope, Objectives and Methodology
  • Definitions
  • Market Structure
  • Fleet Segmentation
  • Car Sharing

3. Market Forces - Drivers and Restraints
  • Market Drivers
  • Market Restraints

4. Total Market for Fleet and Company Cars
  • Total New Fleet & Company Car Registrations
  • Total New Fleet & Company Car Parc

5. Total New Company Car Registrations and Parc Analysis by Funding Type
  • Total New Company Car Registrations
  • Total Company Car Parc
    6. Total Company Car Registrations Breakdown
    • Powertrain Segmentation
    • Powertrain Segmentation Discussion
    • Sales Channel (Direct Vs. Indirect)
    • Vehicle Brand Class (Premium Vs. Non Premium)

    7. Competitor Market Shares
    • Operational Leasing
    • Financial Leasing

    8. Analysis of Total Private Leasing Segment (New Registrations and Parc)
    • Total Private Leasing - New Registrations
    • Total Private Leasing - Parc

    9. Breakdown Analysis of Total Vehicles in Car Sharing Fleet (Parc)
    • Car Sharing by Funding Type
    • Car Sharing by Solution/Usage Type

    10. Growth Opportunities and Companies to Action
    • Growth Opportunities
    • Strategic Imperatives

    11. Key Conclusions
    • Key Conclusions and Future Outlook
    • Legal Disclaimer
    • Appendix
    • Fleet Vehicle Leasing Program - How Can the publisher Help?
    • List of Exhibits