Fleet vehicle units in Turkey to reach 2.3 mln

Fleet vehicle units in Turkey to reach 2.3 mln

The total number of vehicles in Turkey will reach 12.8 million units by 2014 as the number of fleet vehicles in this segment is expected to be 2.3 million units, according to a recent survey.

“The current projection for the total number of vehicles by the year 2015 has been pegged at around 13.6 million units. The fleet vehicles are expected to contribute this accumulation with 2.5 million vehicles,” according to the Corporate Vehicle Observatory (CVO) Barometer 2013 survey.
The results of the CVO Barometer, the only research that focuses on fleet management, which was conducted with the support of TEB Arval, was revealed at the “Future of Corporate Fleets Conference, ” hosted by Luc Soriau, TEB Arval’s Managing Director, and Denis Ferault, the Division Head of Arval Consultancy, last week. The report, with nearly 5,000 answers from 16 countries, provides an outlook on the Turkish fleet leasing industry.

Soriau pointed out that 61 percent of small- and middle-sized businesses in Turkey expected their fleet vehicles to increase within the next 3 years as growth-oriented expectations roe by 24 percent compared to the previous year.

“The tables show that, in the small- to mid-sized company segment, company vehicles are either self-purchased or bought via car loans” said Soriau, adding that for larger sized companies (100+ employees), Operating Leasing was often used (27% of Turkish companies declared to use the Operating Leasing option as the main financing solution) but the penetration rate remained lower than what he and his team had observed in European markets.

According to the results of the CVO Barometer 2013, the estimated total number of passenger and light commercial corporate vehicles in Turkey was 2.1 million units. The total amount of retail cars in Turkey is 9.3 million. The figures show that corporate fleet vehicles take an 18% share in the total number of vehicles. The figures from the last decade show that the fleet leasing industry has a constant growth rate. The trend also proves that companies in Turkey are becoming keener on outsourcing usage in terms of corporate vehicles.

Many Turkish fleet managers have become aware of the significance of the Total Cost of Ownership principle (TCO), in that driver behavior impacts vehicle costs. Only less than 10 percent of interviewed professionals claimed that this phenomenon did not have any impact at all. Furthermore, 20 percent of fleet managers in mid-sized companies (10 to 99 employees) and 36 percent of fleet managers in large-sized companies (100+ employees) have already implemented measures to target the lessening of their impact.