Argentina, virgin territory for lease companies
Last year, around one million vehicles were sold in Argentina, up 14% over 2015. That excellent result was one of the signs of a general economic upswing, thanks to better management of the economy by the new government, with noted positive effects on industrial production.
The positive trend, both for the Argentinian economy in general and the automotive market in particular, should continue this year.
The True Fleet market represents no more than 10% of total automotive sales, a weak result – also considering the fact that most major manufacturers have put in place dedicated, segmented fleet structures, with a good grasp of the business. But Argentina still suffers the effects of many years of economic isolation, which explains the virtual absence of lease and fleet management offers in the country.
In fact, what fleet activity there is, is limited almost entirely to fleet management, operated by local players. There are no international lease and fleet companies with a direct presence in Argentina (although ALD International and the Arval-Element Alliance have local partnerhips and work via respectively Autocorp
and RDA Renting
). The country is basically virgin territory for car leasing, and more specifically for full service leasing.
The reason is the historically high rate of inflation, and the resulting high rate of interest, which has prevented leasing from becoming an attractive solution, at least until now.
Pick-ups and subcompacts
The main vehicle brands in Argentina (pictured: Buenos Aires) are Volkswagen, Chevrolet and Renault, in that order. Mercedes was last year's strongest riser, indicating a revival of the luxury segment. The best-selling model of 2016 was the Toyota Hilux, a pick-up. The biggest sales gains were posted by the Renault Clio, a subcompact. Pick-ups and subcompacts are the most popular vehicle segments in Argentina. LCVs comprise 16% of total sales.
Image: Shopping Abasto, CC BY 2.0
| 01/03/2017 | Frank Jacobs