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Light commercial vehicle (LCV) is a four-wheeled motor vehicle and is used for the transportation of goods. Light commercial vehicles (LCVs) have a specific mass given in tons (metric tons) and are used to differentiate between light commercial vehicles and heavy trucks. This limit ranges between 3.5 and 7 tons depending on national and professional criteria. Vehicle leasing is seen as a solution to the rising number of challenges faced by companies, such as vehicle funding, fleet maintenance, and, more importantly, residual risk handling. Businesses, in the current market conditions, are focused on their core products/services and seek to outsource all other support activities.
COVID-19 Impact Analysis
Coronavirus disease (COVID-19) is an infectious disease that is caused by a recently identified coronavirus. The disease outbreak has affected the light commercial vehicle leasing market across the globe, and primarily in the countries where lockdown is declared to control the disease. For instance, the U.S. has been severely impacted by the coronavirus pandemic, and the light commercial vehicle leasing market has suffered significantly due to decreased demand for their services. In the U.S., the automobile rental and leasing market is concentrated with 3 companies accounting for more than 94% of the market share and all the 3 companies have reported a decline in revenues due to the impact of COVID-19. The 3 major companies, Avis, Hertz, and Enterprise have requested the U.S. treasury Department to include their industry in federal plans to rescue travel companies. Avis has reported around an 80% decline in their revenues due to travel restrictions imposed because of the COVID-19, in April 2020. In France, the government had to intervene and underwrite loans worth €225 million light commercial vehicle company. Many countries, however have lifted lockdown with certain rules, and regulations, companies have to follow the safety protocols such as body temperature scanning, social distancing and ensuring high standards of sanitization which will increase the cost.
Top Impacting Factors
Rise in industrial activities, growth in e-commerce industry, surge in awareness about the benefits of leasing, and people shifting from purchase to vehicle leasing drive the growth of the market.
Government initiatives for promotion of e-mobility, and growing popularity of electric light commercial vehicles act as an opportunity for the market investments.
The Light Commercial Vehicle Leasing Market Trends are as Follows:
Surge in Awareness About the Benefits of Leasing
Rapid expansion of several other industries globally and internationally has rapidly expanded the shared mobility market to travel in different parts of the country. The increase in the use of light commercial vehicle leasing by industries has rapidly raised awareness among common people seeking the benefits they are getting over other available options. This promotes market growth during the forecast period.
People Shifting from Purchase to Vehicle Leasing
Increase in traffic and pollution in most developed cities has encouraged buyers not to purchase their light commercial vehicles and instead to utilize shared mobility or lease a vehicle for the required amount of time in exchange for timely rental payment. This is anticipated to boost the market growth during the forecast period
Key Benefits of the Report:
Questions Answered in the Light Commercial Vehicle Leasing Market Research Report:
Key Market Segments
Key Market Players