Analysis on Vehicle Fleet Leasing market in Brazil region. From the research repository of Frost & Sullivan. Brazilian economy which is now sailing on troubled waves - various industries including the auto business are shutting their expansion doors. In the scenarios of lower industry production, dip in sales where do we see the fleet leasing market in Brazil. The study unveils a granular level market intelligence data set and strategic insights on factors influencing the leasing market. Contact undersigned for more details Abishek Narayanan abishekn@frost.com

1. Research PREVIEW for the study on Brazil Fleet and
Leasing market
Analysis of the Brazil Fleet and Leasing
Market

2. Sample of Key Highlights
• Brazil has a well-developed automotive market, with most international
participants such as Fiat Chrysler Automobiles, Volkswagen Group, and
General Motors Group having a presence here.
• Anticipated to be a profitable business in the long run, driven by cost
efficiencies from economies of scale, mobility as a service is picking up
traction in Brazil.
• The leasing industry has posted a penetration level of XX% and is expected
to grow to a penetration level of more than XX% in the company car market
(company car excludes Rent-a-Car [RAC] and exhibition units).
Source: Frost & Sullivan analysis.
2

3. Research Scope
Source: Frost & Sullivan analysis.
Passenger Cars and Light Commercial VehiclesVehicle Type
2016 to 2020Forecast Period
2014 to 2020Study Period
2015Base Year
BrazilGeographic Scope
Passenger Car Class
A (Mini), B (Entry), C (Compact), D (Medium), E (Luxury), F (Upper
Luxury) and Light Truck Segments
Industry Segmentation
Beverage, Food, Construction, Logistics, Healthcare,
Telecommunication, FMCG, and Others
3

4. Automotive Sales Market Structure
New Direct Sales Registration
Total New Registration
Corporate Sales as
Fleets
Company Cars
New Retail Registration
Individual
(VIPs, OEM employees etc..)
Vehicle Fleet & Leasing Market: Automotive Sales Market Structure, Brazil, 2015
RAC – Short Term
Rental
Dealers &
Manufacturers
Operational
Lease
Financial
Lease
Outright
Purchase
Covered in the Study
Not Covered in the Study
Source: Frost & Sullivan analysis.
4

5. Brazil Automobile Industry Segmentation
Automobile
Market
2 Wheelers
Scooters
Mopeds
Bikes
Passenger
Vehicles
Passenger Cars
Pickup Trucks
Vans
SUVs
Commercial
Vehicles
Medium trucks
Heavy Trucks
Buses
Others
Wheel Tractors
Crawler
Tractors
Loaders &
backhoes
Vehicle Fleet & Leasing Market: Automobile Industry
Segmentation, Brazil, 2015
Vehicle Fleet & Leasing Market:
Automobile Sales Split, Brazil, 2015
Source: Frost & Sullivan analysis.
5

6. Vehicle Leasing Penetration – New Registrations
Sales(millions)
Year
Vehicle Fleet & Leasing Market: New Registered Vehicle Lease Penetration, Brazil, 2012‒2020
Company Car CAGR – X%
CAGR (2015‒2020)
XX% of Leasing
Penetration
XX% of Leasing
Penetration
The penetration of new registered
leasing vehicles of the Company cars,
is expected to reach about XX% by
2020, a clear indication of changing
in funding preferences
Source: Frost & Sullivan analysis.
6

7. Market Engineering Measurements
Source: Frost & Sullivan analysis.
Measurement Name Measurement Trend
Market Stage X
▲▼●
Market Age X
Market Revenue (2015) X
Base Year Market Growth Rate X
Market Units/Volume: Operational Lease X
Market Units/Volume: Financial Lease X
Compound Annual Growth Rate (CAGR - 2015–2020) X
Industry Participants (Active market competitors in base year) X
Degree of Competition (Scale of 1 to 10) X
Degree of Technical Change X
Customer Loyalty (Scale of 1 to 10) X
Market Concentration (% of base year market controlled by top 3 competitors) X
Decreasing Stable Increasing
▼ ● ▲
Vehicle Fleet and Leasing Market: Market Engineering Measurements, Brazil, 2015
Overview
7

8. Denotes long-term impact
Denotes current impact
Vehicle Fleet & Leasing Market: Key Market Drivers and Restraints, Brazil, 2015 - 2020
Market Drivers and Restraints
Capital Requirement
with high interest
rates and strict debt
laws
A not so good
macroeconomic
scenario that inhibits
companies from
spending and investing
Underdeveloped transport
infrastructure which is a
main influencing factor for
leasing companies in
various fronts
Increase in used car sales
Tax Burden and
confusing tax laws
Fragmented market
opens up avenues of
better services and
growth
Opportunities on
growth and
consolidation
DriversRestraints
Client companies'
focus is on cost
reduction through
fleet leasing
Source: Frost & Sullivan analysis.
8

9. Executive Summary — CEO’s Perspective
2
A transformation from a costly vehicle
funding model of ―Ownership‖, in Brazil is
seen, to a cost effective funding model of
―Operational leasing‖, where vehicles are
used and returned post contract period.
Hence no residual risks.
3
Seen as an alternative of outright purchase
with the flexibility of opting management
services, there are takers in Brazil for
―Financial lease‖, who consider owning the
vehicle at the end of contract
1
Touted to be a profitable business in the long
run with economies of scale, providing
mobility as a service is picking traction in the
Brazil region
Source: Frost & Sullivan analysis.
9

10. The Full Analysis Features the Following Content
Section Slide Numbers
Executive Summary 7
• Key Findings 8
• Market Engineering Measurements 10
• Automotive Sales Market Structure 12
• Positioning of Brazil in Latin America 13
• New Registered Vehicle Leasing Penetration 14
• Total Market Unit Shipment Snapshot 15
• Market Share of Operational Leasing Companies 16
• Market Share of Financial Leasing Companies 17
• Market Share of Rental and Leasing Companies 18
• Market Indicators 19
• Key Conclusions and Future Outlook 20
Research Scope, Objectives, and Methodology 21
• Research Scope 22
• Research Aims and Objectives 23
10

11. The Full Analysis Features the Following Content
Section Slide Numbers
• Key Questions this Study will Answer 24
• Research Background 25
• Research Methodology 26
• Key Participant Groups in Brazil Leasing Industry 27
Definitions and Segmentation 28
• Vehicle Fleet and Leasing Market—Definitions 29
• Automotive Sales Market Structure 32
• Rental and Leasing Market Structure 33
Brazil Automotive Industry 34
• Macroeconomic Scenario in Brazil 35
• Brazil Automobile Industry Segmentation 37
• Concentration of New Registrations—Region Split 38
• Brazil Automotive Market Vehicle Sales Structure 39
• Growth Trend—Portfolio of Light Vehicles 40
• New Registrations and Production—PCs and LCVs 41
11

12. The Full Analysis Features the Following Content
Section Slide Numbers
Brazil Vehicle Fleet and Leasing Market Overview 42
• Market Engineering Measurements 43
• Automotive Sales Market Structure—Brazil 44
• Stakeholders in the Vehicle Fleet and Leasing Market 45
• Business Profile—Revenue Split and Tax Contribution 47
• Business Profile—Share in Fleet Business by OEM and Type 48
• Associations 49
• Regional Penetration of Leasing and Rental Companies 50
CEO’s 360-Degree Perspective on the Fleet and Leasing Industry 51
• CEO’s 360-Degree Perspective 52
PESTLE Analysis 53
• PESTLE Analysis Summary 54
• PESTLE Analysis—Explained 55
Industrial Taxes, Duties, and Contributions 58
• Tax System—Brazil 59
• Types of Taxes and Contributions 60
12

13. The Full Analysis Features the Following Content
Section Slide Numbers
External Challenges: Drivers and Restraints—Total Vehicle Fleet and Leasing Market 62
• Market Drivers 63
• Drivers Explained 64
• Market Restraints 65
• Restraints Explained 66
Total Vehicle Fleet and Leasing Market—Penetration Trend Analysis 67
• Company Car—Portfolio and New Registration 68
• Portfolio—Leased Vehicles and Outright Purchase 69
• Operational Lease—Portfolio and New Registration 70
• Financial Lease—Portfolio and New Registration 71
Market Share and Competitive Analysis—Total Vehicle Fleet and Leasing Market 72
• The Mobility Service Business Ecosystem 73
• Market Share of Operational Leasing Companies 74
• Localiza—Company Information and Services Portfolio 75-76
• Locamerica—Company Information and Services Portfolio 77-78
13

14. The Full Analysis Features the Following Content
Section Slide Numbers
• Ouro Verde—Company Information and Services Portfolio 79-80
• Unidas—Company Information and Services Portfolio 81-82
• JSL/Movida—Company Information and Services Portfolio 83-84
• Select Fleet Leasing Companies and Solutions—Matrix 85
Mega Trends and Industry Convergence Implications 86
• Impact of Automotive Industry Mega Trends on the Fleet and Leasing Market 87
Conclusions and Future Outlook 92
• Key Conclusions and Future Outlook 93
• The Last Word—Three Big Predictions 94
• Legal Disclaimer 95
Appendix 96
• Abbreviations and Acronyms Used 97
• Market Engineering Methodology 99
• Global Urban Mobility Research Program for 2011‒2012 100
• Frost & Sullivan—Global Urban Mobility Research: Existing Research 101
14

15. What is the volume of new registration sales, portfolio segment wise and their forecasted growth
How is the automotive industry in Brazil trending? How is the market structured from an OEM’s
perspective?
What is the business environment of the fleet leasing market in Brazil? What are the dynamics and
trends of the market?
What are the factors that are likely to drive and determine the growth potential of the Brazil fleet
leasing market between 2015 and 2020?
Vehicle Fleet & Leasing Market: Key Questions the Analysis Answers, Brazil, 2015
What are the external challenges faced by the total fleet leasing market in Brazil?
Source: Frost & Sullivan analysis.
Key Questions the Analysis Answers
15

16. Key Participant Groups in Brazil Leasing Industry
Key participants include all the stakeholders involved in the ecosystem of the leasing industry; this list is
not exhaustive but gives an idea of the major brands involved in the business.
Source: Frost & Sullivan research.
Leasing Companies
Original Equipment
Manufacturers (OEMs)
Unidas Avis Fiat Chrysler Automobiles
Localiza LM Frotas Volkswagen Group
Locamerica Relsa Brazil General Motors Group
Ouro Verde Volvo Finance Renault-Nissan Group
Movida Rodobens Leasing & Locação Ford Group
Arval & BNP Paraíbas Let's Hyundai Group
Hertz Tfleet PSA Group
Leaseplan Ecofrotas Honda Group
ALD Automotive Global fleet Toyota Group
Total Vehicle Fleet and Leasing Market: Key Participants, Brazil, 2015
16

17. Interested in Full Access? Connect With Us
Abishek Narayanan
Industry Analyst
Automotive & Transportation
+91 44 6681 4453
abishekn@frost.com
Research Authors
Lead Analyst
Abishek Narayanan
Industry Analyst -Fleet &
Leasing Program
abishekn@frost.com
Automotive &
Transportation
Research Director
Graeme Banister
Director of Consulting –
Fleet & Leasing Program
graeme.banister@frost.com
Automotive &
Transportation
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18. Global Perspective
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