Ford takes top spot in the Company Car Fleet Sales list once again
With the US car maker responsible for 10% (106,000) Fleet Car sales out of 1.1M year to date November it once again leads the way in the UK fleet market (Ford Range) with German Powerhouse VW (VW Range) in second place with 90,000 and UK producer Vauxhall in 3rd place with 84,000 (Vauxhall Range).
All this comes against the backdrop of declining total car sales and a corresponding decline in Fleet sales and business car leasing market also.
Total car sales to November 2018 are down from 2.388M to 2.223M a reduction of 8% year on year, the causes of which have been heavily documented and include: falling demand for diesel cars (down 30% year on year), wider economic uncertainty from Brexit and new emissions testing procedures (WLTP) which both limited car supply to the market and increased costs through taxation on business contract hire.
This total car sales decline impacted Fleet Company Car sales proportionally with total Fleet sales to November being 1.139M down from 1.229M in the same period 2017 which is also a 7.3% reduction with Fleet Managers being impacted by the same factors private buyers were.
Total Car Sales and Car Fleet Sales
Fleet Sales Represent About 50% of Total Car Sales
Fleet car sales consistently represent about 50% of all car sales but there is a significant variation across major manufacturers with Fleet representing 60% of BMW's (BMW Range) total registrations and only 37% of LandRover's (LandRover Range) which is likely due to the mix of vehicle models available for business leasing to the Fleet Manager a major cause.
Major Movers in The Fleet Company Car Sales Market 2018
Outside of the smaller manufacturers Mitsubishi (Mitsubishi Range) was the biggest mover in the Company Car market (up 40%) with Fleet Managers taking advantage of the low Benefit in Kind rates on their Plug in Hybrid (PHEV) products which makes them a viable business car lease, Seat (Seat Range)also continued their push into the business contract hire and leasing market with a 14% increase in registrations and BMW performing best out of the high volume manufacturers with a 5% increase to almost 96,000 units, a reflection on their ability to meet company supply needs when Audi had issues post WLTP.
The biggest fall in company car fleet sales came from Ssangyong and Fiat with Nissan suffering a 37% reduction also, no doubt these manufacturers were impacted by the same external factors identified earlier and government tax changes impacting company cars more than others as end users shifted to other business car leasing options.
Overall another challenging company car year, time for Strategic Fleet Consultancy
2018 will go down as a tumultuous year politically and economically so it can be of no surprise that the new Car Sales market and Company Car market took a buffeting too but as always the manufacturers, suppliers and end users show their usual resilience and willingness to try alternative manufacturers, vehicles and technologies to ensure their vehicles meet their business mobility needs.
Gazing into 2019 we should surely expect more of the same with Brexit becoming clearer (we hope..) and a little bit more stability to allow businesses and Fleet Managers to plan for the medium and long term, with this in mind Businesses should take advantage of Strategic Fleet Consultancy solutions to ensure their Fleet Policy and Processes are adapting to the myriad of changes taking place within the business car leasing market.
LetsTalk are Independent Fleet Consultants who specialise in Fleet Services and Fleet Products Strategic Fleet Consultancy and Fleet Optimisation, their independence allows them to create bespoke reviews and analysis which take advantage of the latest products and services available in the market today, for a free no obligation consultation call us on 0330 056 3331 and LetsTalk!
SMMT - https://www.smmt.co.uk/2018/12/modest-3-0-decline-for-november-uk-new-car-market/
FN50 - https://www.fleetnews.co.uk/ca...