For many multinational companies, the Philippines is the third largest fleet market in Asia, after Japan and India. One reason is the nation is an archipelago of more than 7,000 islands, requiring vehicle concentrations confined to individual islands.
The fleet leasing market is dominated by local lessors. With the exception of ORIX, most of the major global fleet management companies do not have a presence in the Philippines. This is due to the ownership requirements placed on international businesses by the government. The average size of fleets in the Philippines is under 50 units.
Traditionally, purchasing has been the customary method of acquiring fleet vehicles. Also, the smaller lessors have been slower to understand, accept, and promote the leasing product, but, as international corporate end users expand into these areas, they are demanding the lease as their preferred method of acquisition.
--By Mike Antich
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