February 9, 2023

EV demand drives forward automotive leasing equipment market

It is not anymore “to be or not to be” dilemma both for sustainable businesses and new car owners of whether to purchase full all-electric vehicle or plug-in hybrid EV. The acceleration in the global transition towards electric vehicles is evident and irreversible.

As consumer demand is rising and supply of EV is increasing, the investment in EV infrastructure is a hot topic worldwide. EV Country Readiness Index measured by different companies and platforms, assesses the markets annually based on supply, demand and regulatory factors.

Moreover, approximately 50% of vehicles on the road today are registered to corporate organizations. Corporates are therefore incredibly important in leading the transition to a more sustainable transport system, showed a report of LeasePlan.

Buying or leasing a pre-owned electric vehicle?

Different incentives in Europe and US provide a variety of financial schemes to encourage purchasing or leasing an eligible pre-owned all-electric vehicle or plug-in hybrid EV. The trend is gaining speed as the global electric vehicle supply equipment market is estimated to grow at a compound annual growth rate (CAGR) of 33.2%, as per Facts and Factors study.

In 2021, the global electric vehicle supply equipment market was estimated at USD 32.5 billion, and by 2028, it is predicted to reach USD 210 billion. Electric vehicle supply equipment assembles components for charging electric vehicles in a variety of commercial and residential settings, including hotels, depots, roads, parks, houses, and corporate headquarters.

The rising of leasing schemes share is also seen in the global automotive equipment leasing market worth USD 434.1 bln. in 2022. In terms of per capita consumption, the market was $55.6 and in terms of global GDP, the market was 0.40%. Automotive equipment leasing was the second largest segment within the leasing market accounting for 28.5% preceded and followed by lessors of nonfinancial intangible assets at 36.5% and machinery leasing at 24.5% respectively.

LeasePlan key findings 2022

• The top 3 countries in the index remained the same as last year, with Norway #1, Netherlands #2 and UK #3.
• EV uptake increased significantly in almost all markets. This reflects the increasing popularity of EVs across European countries as more models become available in every segment.
• Charging infrastructure is still lagging, creating conditions for a charging shortage as EV registrations rapidly increase. This highlights the urgent need for governments to invest in a robust and reliable public charging infrastructure across Europe.
• EVs are more affordable than ever. Cost competitiveness is mostly driven by comparatively lower energy prices for EVs (especially when compared to increased diesel and petrol fuel prices) and more beneficial taxation arrangements for EV drivers.

For automotive dealers and importers looking for enhanced leasing management Intelligent Systems developed DealerBox Leasing module for Dynamics 365 Business Central and DealerBox automotive management system. DealerBox Leasing app manages car sales, service, and spare parts, financial and operating leases. Find more: Leasing – DealerBox – automotive retail management system

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