Corporate Vehicle Observatory is a research institute established in France in 2002. The purpose of the institution is to track the market movements in the automobile industry. The recent survey conducted by an independent research agency named CSA on behalf of Corporate Vehicle Observation (CVO) says that there is an emerging positive trend in the corporate vehicle market in BRIT countries. The agency published the results two days back.
Operational leasing is basically the function of running a fleet without taking any risk of ownership. This is basically done by the huge companies to reduce risk, control the cost and tax efficiency.
CVO report indicates that there is an increase in the demand for operational leasing of vehicles by major companies in countries like India. According to the study the companies in the BRIT countries focus more on operational leasing. Almost 32 % of companies in Brazil, Russia, India and Turkey (BRIT) demands operational leasing which is comparatively very high then their European counterparts. Interestingly, only 10 % of the European companies have adopted operational leasing, which was one of the strongest markets for fleet leasing world-wide.
It was surprising to see that the BRIT economies have outperformed the European market comparatively from the previous years.
As per the report, Corporate are also looking for outsourcing their various fleet services to minimize the cost. Fleet services preferred for outsourcing include maintenance, roadside assistance and insurance management. In addition to these conventional fleet management services, green initiatives like CO2 reporting, CO2 optimization and eco driving are also now being outsourced.
Report discusses some of the reasons behind the increasing focus of fleet managers in large Indian corporate to outsource fleet operations to experts. This is because most of the Indian companies are providing incentives to the employees in the form of vehicles compared to European firms. Participation of human resource in car policies is also welcomed by the BRIT countries. More over the Indian companies are well ahead from the European’s in safe driving.
The initiative step taken by the Indian companies in managing the environmental problems as well as the development of various car policies to enhance the car fleet management is very appreciable. The BRIT counties show more responsibilities towards environment management and also flexible in accepting the changes in technology. Thus the scope of operational leasing is rapidly growing in India along with Brazil, Russia and Turkey compared to European companies.
The CVO India Report 2011 concludes on a positive note that this trend of increased operational leasing and outsourced fleet management among Indian corporate is expected to continue. Indian firms this as an effective way of minimizing their operational cost as well as to manage their fleet operations in an optimal manner.