H1 upturn in vehicle leasing is ‘driving force’ for European leasing market, says Leaseurope
Leaseurope’s chairman, Jukka Salonen (CEO, Nordea Finance) said: ‘Leaseurope’s latest figures show that European lessors have been able to make the most of the economic recovery in the first half of the year. Vehicle leasing has literally been the driving force behind the positive development in the overall market, while equipment leasing in the EU was influenced by continued cautiousness in companies’ investment spending.’
The boost in vehicle leasing volumes formed part of a general upwards trend in the European leasing market, which also saw a positive performance for the various markets at a regional level, with the exception of the Mediterranean cluster, where new volumes decreased significantly across all types of assets segments.
New business in the Russian leasing market was particularly robust and contributed significantly to the strong overall performance of equipment leasing. If figures for the United Leasing Association of Russia, which joined Leaseurope recently, are excluded from the total, European equipment leasing volumes grew only marginally, gaining 0.8% compared to the first half of 2010. On the other hand, vehicle volumes in all countries excluding Russia remained strong, improving by 10.1%.
Looking to the second half of the year, Leaseurope said that concerns surrounding the European sovereign debt crisis and fragile business confidence are likely to have a dampening effect on European economic prospects, and added that European lessors will have to navigate through this challenging environment.
Mr Salonen added that ‘ensuring sustainable levels of profitability will be the necessary condition for the leasing industry to secure funding going forward. This means that leasing companies will have to adjust their business models to meet new market demands’.