Arval expands global fleet 8.2% as private leasing market soars
Arval’s global leased fleet grew 8.2% in 2018, helped by strong growth in private leasing as well as the SME corporate sector.
The firm’s leased fleet hit a total of 1,193,910 vehicles while the number of vehicles ordered increased by 9% year-on-year, totalling 353,302 vehicles. The number of end-of-contract vehicles sold was flat versus 2017, totalling 254,207.
The firm’s four largest markets were all up, with growth in France +5%, UK +5 %, Spain +19% and Italy +8%. Double-digit growth was booked in many other areas such as in the Benelux (+12%), Southern Europe (+16%), Central Europe (+14%) and the Nordics (+25%).
All corporate client segments saw growth, with SMEs up 17% while the corporate and public segments rose 4%. The international clients of Arval stood for an organic growth of more than 7% and now represent more than 25% of the overall business.
However, in line with global trends, it was the firm’s private leasing offers that saw the highest growth, with the private lease fleet having increased by +45% between 2017 and 2018. The firm’s work to roll out offers for private individuals in Europe includes its launch in the Netherlands of an online car store for private customers where they can select the car that best suits their needs and lease it through an all-inclusive, hassle-free service package. This is planned for launch across several other European countries in 2019.
The firm also said other new commercial offers launched in 2018 had proved successful, including the introduction of its SMaRT – Sustainable Mobility and Responsibility Targets – five-phase proposition to help clients define and implement their fleet energy transition strategy.
The business has also launched its Electric Vehicle Offer – which covers the whole EV spectrum, from home and workplace charging point installation to integrated payment solutions (with automatic home charging reimbursement) and EV digital services – in 12 countries ahead of its roll-out in several “EV mature” markets.
It’s also introduced the ‘Arval For Me’ digital solution that gives private individuals full access to a range of services including maintenance and repair as well as directly linked mobility services. This platform is currently available in Italy and Spain with about 12,000 members.
Looking ahead to 2019, Arval said growth opportunities would be underpinned by digital, data and people. The business has recently launched its new Employee Value Proposition intended “to underpin the importance of empowered people driving this strategy and delivering outstanding service and industry expertise to its customers and drivers”. Its My Arval platform, launched at the end of 2017 and available to all customers, allows customers and drivers to interact and get personalised and proactive information and services whenever and wherever they need it.
Alain Van Groenendael, Arval CEO, said: “As our unique spectrum of high-value services meets the positive market trends, we are confident that we will achieve a significant growth in 2019. Our teams are engaged in all countries and segments and achieving a 9% growth for the year ahead seems within our reach. Our integrated offer, strong assets, and the course set on data and digital will enable us to meet our clients’ mobility challenges, including our responsibility to fight climate change.”
Miguel Cabaça, managing director at Arval UK, added: “Over the last year, we have enhanced and expanded our product offering to meet the needs of a changing fleet sector and the results have been encouraging, both in our traditional corporate segment and the SME/private lease area. Into 2019, we intend to continue this strategy, helping our partners and customers to meet their transport challenges, whether those specific to the UK market or those that are reflective of longer terms shifts in fuel choices and mobility. It’s a challenging but exciting period.”