BVRLA chief executive Gerry Keaney said: ‘The industry performed well in 2014, with the association seeing a further increase in membership and fleet sizes across nearly all sectors.
‘Road transport is rising up the government agenda, and the good news is that the fleet industry has never had a more influential voice in Whitehall.
‘2015 will have its challenges and election years are always hard to predict, but we believe that this will be another successful year for the vehicle rental and leasing industry.’
The BVRLA’s 2015 outlook:
The political environment
‘The upcoming General Election is widely expected to be even closer than that of 2010, with most political analysts saying it is too close to call. This raises the prospect of another coalition being formed, which is likely to result in an extra period of political and economic uncertainty.
‘Businesses will also be waiting anxiously to see how our next government decides to implement the required austerity packages of tax measures and spending cuts.
‘On a more positive note, the launch of Highways England and a new roads watchdog and passenger champion suggests that road users will have much greater voice within government going forward.’
The business environment
‘The used van market will continue to strengthen, with stock in short supply and demand for panel vans underpinned by growth in the parcel and courier sector.
‘The funding situation remains healthy. As predicted, a number of new funders entered the market in 2014. We expect a similar environment in 2015, with even more new funders entering the vehicle finance sector and rates remaining competitive. This could even lead to some further consolidation as funders look to buy existing lending “books”.
‘BVRLA members enter 2015 with the exciting prospect of some major reductions in their administrative cost base, but these gains cannot be taken for granted. While the abolition of the paper tax disc and introduction of a fleet portal should result in much less paperwork for fleet operators, there must be a smooth transition when the driving licence counterpart is abolished.’
The regulatory environment
‘It is set to be another challenging year from a regulatory perspective and all the major regulators are likely to flex their muscles to gain a higher profile in the run up to the election. Leasing brokers and funders will have to meet the requirements of the Financial Conduct Authority (FCA) as its new consumer credit regime beds in. We can expect the FCA to continue to use its regulatory powers to further promote transparency, clarity and fairness. We will also see more leasing brokers joining the BVRLA as they realise that membership of a proactive industry association will help them demonstrate that they take this regime seriously.
‘With its limited enforcement budget, the Driver and Vehicle Standards Agency (DVSA) will be taking a more preventative and collaborative approach to road safety, trying to educate operators and working with motoring organisations such as the BVRLA. The van safety campaign the DVSA is launching this year is likely to set the template for much of its future activity.
‘Meanwhile, the BVRLA will continue to lobby regulators and other automotive industry stakeholders at an EU and UK level to provide more clarity on regulation of connected and autonomous vehicles.’
Market trends
‘Within the leasing sector, the BVRLA expects the strong business confidence from 2014 to continue this year. Most members expect conditions within the wider economy and the fleet leasing sector to improve in 2015, though they remain concerned about profit margins. In the business-to-business environment, we expect to see year-on-year growth of 5% for car leasing, with an-ever increasing market share from the lower medium, dual-purpose and multi-purpose car segments.
‘Growth will be even higher in the van leasing market, which the association expects to maintain the 10% year-on-year increase seen in 2014.’