After a short period of clearing, the sky darkened again over the auto industry. Barely out of the coronavirus pandemic, manufacturers are faced with a shortage of semiconductors. These electronic chips are sorely lacking and their absence grieves factories when the economic recovery is in place. The fleets are not immune to this new crisis. If the order books are full, delivery times are getting longer, sometimes reaching six months.
"Manufacturers favor resale channels where the margins are the most important
," notes Pierre Gerfaux, automobile director of Accenture.
However, the fleet sector is less profitable and manufacturers are concentrating their efforts on other market segments. ”
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Car rental companies, both partners and competitors of dealers
In contrast, long-term rental (LLD) players focus almost exclusively on business customers.
However, this method of financing has asserted itself as a resilient practice.
"This method of financing and management is adapted to the use of customers,"
explains Jérôme Conrad, president of LeasePlan France.
To respond to all situations, we were able to shorten or lengthen the contracts. ”
● The second-hand market is exploding
Offered by short- or long-term rental companies or even by manufacturers, medium-term rental has taken advantage of the shortage of semiconductors to prosper. It makes it possible to compensate for the lengthening of delivery times.
"Present in 31 countries, our ALD Flex offer has been a real success,"
says Gilles Bellemère, CEO of ALD Automotive France. Beyond one month, the tenant is released from any long-term commitment and can calmly wait for the delivery of a new long-term vehicle.
The microprocessor crisis weighs more heavily on companies when vehicles are closely linked to their core business.
“A company vehicle appears to be an element of comfort, whereas the service vehicle is crucial for the company's activity
,” explains Jérôme Conrad.
Under these conditions, proactive maintenance is essential to mitigate the effects of the extension of LLD contracts. ”
If the extension of contracts does not penalize long-term rental companies, it weighs on manufacturers and on companies that do not have the right vehicles at the right time.
But the misfortune of some makes the happiness of others.
When new vehicle sales slow down, the used market explodes.
Without the possibility of buying a vehicle first hand, individuals and more and more companies are turning to the second hand.
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Second hand: used cars whet appetites
According to data from NGC-Data, in the first three quarters of 2021, sales volumes in the second-hand market increased 13.1% compared to the same period of 2020 and by 5.2% compared to first nine months of 2019, the year of the previous record. This year, 3.6 used vehicles were sold for 1 new vehicle.
The business model of long-term rental companies, bank subsidiaries, car manufacturers and independent players is based in part on their ability to resell their vehicles well on the second-hand market. They set their rents according to several criteria, among which the residual value occupies an essential place. Expressed as a percentage, this number reflects the ratio between the new price and the resale value. With an overheated used-vehicle market, prices are rising, as are rental margins. Today, Arval earns between 600 and 900 euros on the resale of each of its vehicles.
The combination of the shortage of semiconductors and therefore of new vehicles with the economic recovery explains the soaring of the occasion. This improvement comes to contradict the Cassandras who foresaw a major crisis caused by the “Dieselgate” and the disaffection of used vehicles with diesel.
“The diesel vehicles that are now on the second-hand market were produced five or six years ago
,” says Gilles Bellemère.
However, the sale of these vehicles does not present any difficulties. Individuals who cannot buy new vehicles look to the occasion and choose diesel because they have to travel long distances. Our used vehicles are two to three years old. It is all the less difficult to sell them as we have diversified our energies. ”
● The diesel crisis did not happen
The used vehicle also lends itself to the LLD. This practice is gaining ground with individuals and businesses alike. A specialist in used vehicle LLD, Roulenloc has rents that defy all competition. A Clio 5 Intens is offered at 376 euros per month when new against 296 euros in the case of second hand. As long-term rental contracts are negotiated to within a few euros, the difference is significant and likely to interest more and more companies. Today, Roulenloc finances 2,000 vehicles. This is still a modest figure compared to ALD Automotive's 1.76 million units and LeasePlan's 1.9 million vehicles worldwide. To further strengthen their position, the two entities are discussing a merger that would give birth to the world number one. CarNext, former division of LeasePlan, already practices LLD of used vehicles,just like ALD Automotive with its brand ALD Carmarket.
● Fleets retreat
With the health crisis and the shortage of electronic components, the fleet market is rocking but not sinking. The Arval Mobility Observatory has compiled the data to compare the first nine months of 2021 to the same period of 2019. BNP Paribas' think tank excludes 2020, successive containments and shutdowns of production and delivery for long weeks not allowing to establish a convincing comparison. Over the first three quarters of 2021, the fleet market (passenger cars and light commercial vehicles) is down 7.85% compared to the same period in 2019. Sales to businesses are holding up better than the market as a whole, including decline reached 20.3% at the end of September. According to AAAA Data figures, for private vehicles alone, the fleets represented 28,14% of total sales when this percentage peaked at 21.8% in 2017. With light commercial vehicles, the share of companies climbed to 36% in 2021, or more than one in three sales.
● From the car to the official bicycle
In this panorama, French manufacturers occupy a central place.
In the passenger car segment alone, Peugeot, Renault and Citroën occupy the top three places on the podium with respective market shares of 26, 20 and 11%.
The volumes of the Lion increased by 22% compared to 2020, those of the Losange decreased by 3% and those of the Chevrons increased by 23%.
From January to September, the three French brands represented 57% of the fleet market in France.
Companies have more national fiber than other buyers since only 47% of all purchases go to these three manufacturers.
French or foreign, manufacturers are driven by the SUV phenomenon. These bodies have now dethroned the sedans in the hearts of companies and their employees. Since the start of the year, these raised silhouettes have mobilized 45% of auto sales to professionals against 42% for sedans. In 2017, their share was only 32% while sedans kept the same level of 42%. Also between 2017 and 2021, the share of people carriers rose from 9 to 2% and that of station wagons, from 11 to 8%.
If, whatever the type of bodywork, companies still give pride of place to the automobile, new forms of mobility are beginning to appear. Carpooling, car-sharing, bicycles and mobility loans are gaining ground and are among the top priorities for the future of long-term rental companies with electrification. With a low average age and leading-edge practices, large consulting firms are leading the way. This is the case of BCG, which has been offering function bikes to its employees since last June.
“In Paris, young and childless, there is no need for a car
,” explains Matthieu Gombeaud.
Under these conditions, employees need a bicycle more than a company car. ”
Something to think about car manufacturers.
Seat has thus taken the lead by launching an unprecedented mobility offer combining a car, an electric scooter (125 cm3 equivalent) and an electric scooter.