South Pacific promise
Leasing companies and manufacturers are focusing on the burgeoning fleet markets of Chile, Colombia and Peru, on the west coast of South America
The fleet markets in Chile, Colombia and Peru may be in their infancy, but they are attracting some of the world’s largest leasing companies and manufacturers.
The sales trajectory of company cars is promising and full service leasing is starting to gain traction. Local experts estimate that fleets operate 70,000 vehicles in both Chile and Colombia and 30,000 in Peru, of which leasing accounts for 15,000-20,000 vehicles in the bigger markets, and 2,000 in Peru.
This is a small share of the three countries’ annual new vehicle sales - 300,000 registrations in both Chile and Colombia and 170,000 in Peru – yet major international leasing companies like ALD and Arval are targeting double-digit growth.
“We are observing growing demand notably from companies having a presence in several countries of the region and seeking more standardised solutions, better control, and a more sophisticated approach in the set-up of their car policies,” said Pascal Vitantonio, Regional Director Latam and CEO Brazil, ALD Automotive Brasil.
He warned, however, about the need to respect local preferences and avoid imposing international or region-wide standards, whether in terms of the makes and models of company cars or the duration of contracts.
This was underlined by General Motors, which has a strong presence in Chile, Colombia and Peru through Chevrolet. Marcelo Tezoto, South America Manager, General Motors South America,drew the comparison between the region and the US.
“A vehicle which a sales rep drives in the US, is used for managers and/or directors [in Latin America],” he said.
International fleets accustomed to European levels of service also have to lower their expectations; the infrastructure to support fleet management and leasing is developing, but remains patchy.
“The main challenge is to offer a consistent and stable level of quality,” said Arnault Leglaye, Regional General Manager, Arval LatAm. “We have to invest a lot of time to build and maintain a preferred network of suppliers. Be patient, because this area is not yet at the level of Europe in term of maturity, but it’s moving!”
Image: The Renault Sandero is the best selling car in Colombia | 01/03/2017 | Jonathan Manning