Brazilian Fleet Market Remains 'Dynamic'
A weakening of Brazil's automotive market hasn't dampened the country's fleet management market, which remains "relatively dynamic," ALD Automotive's general manager told Automotive Fleet.
"Overall, the fleet market has kept on relatively dynamic in 2014, despite the overproduction crisis faced by the automotive industry," ALD's Pascal Vitantonio wrote in an email. "The retail market has been essentially the one to decelerate, as opposed to corporate."
Sales of cars and light vehicles in Brazil in 2014 fell 6.9 percent to 3.32 million units in 2014, despite heavy government incentives in part because financial institutions toughened credit requirements for consumers buying new and used cars.
Companies have been choosing fleet management companies at an increasing rate as a way to reduce costs, Vitantonio said.
"A growing number of companies chose to opt for fleet management solutions whether full leasing, long term renting, or service-based packages in order to reduce costs and capital consumption, which overall fuels the fleet management industry as a whole," Vitantonio said.
Additionally, the used-car market remains "very liquid and with good price levels," he added.
By Paul Clinton