Corporate fleet and mobility buyers are more optimistic than suppliers, according to a new global survey conducted by Global Fleet in an effort to count the worldwide impact of Covid-19 on fleet and mobility. Τhis increased optimism of buyers is an encouraging message for the future recovery of the industry.
The survey that was published in May 2020 took part in almost 600 members of the global fleet and mobility community from 38 countries. These members are both from the sector of suppliers (59%) and the sector of buyers (41%).
Referring to the level of impact Covid-19 had on their business, 53% of the buyers answered that is was to a medium extent, 33% said that it had a major extent and 14% said that its extent was minimum. At the same time, 52% of the suppliers answered that the level of impact Covid-19 had on their business was with a major extent while 40% said that it was with a medium extent and 8% said that its extent was minimum.
Buyers when asked how has Coid-19 impacted the revenue of their business, 57% of them answered that their revenues decreased while the 36% said that remained the same and the 7% said that their revenues increased.
On the other hand, 75% of the suppliers said that their revenues decreased due to Covid-19, the 24% answered that their revenues remained stable while 1% said that their revenues increased.
Do you believe Covid-19 could put your job at risk? In this question, 63% of the buyers said no while 51% of the suppliers expressed their anxiety that Covid-19 will put their job at risk.
Both buyers and suppliers are really optimistic that their company will survive the crisis. 93% of the buyers said that their company will survive the crisis while 94% of the suppliers answered the same.
When do you expect business to return to normal? In this question, 33% of the buyers said in the fourth quarter of 2020 and 28% of them answered in the first quarter of 2021. As far as suppliers are concerned, 31% of them said in the fourth quarter of 2020 and 21% in the first quarter of 2021.
When asked how they will minimize the impact on their Fleet & Mobility in the short term, the 42% of the buyers said that they will lease contract extensions, the 42% said that they will stop ordering new vehicles and the 24% said that they will reduce shared mobility.
What do you expect could be the long term implications on your Fleet & Mobility? In this question the 50% of the buyers said that the smart mobility usage will stay stable, the 25% answered that the rental usage will decrease and 18% said that the electrification adoption will also decrease. The 68% of the buyers said that the leasing penetration will remain stable and lastly the 35% answered that the fleet size will decrease.
69% of the suppliers believe that customer fleet sizes will reduce this year. Also, 50% of the suppliers expect the Covid-19 crisis to slow down the electrification strategy of their customers’ fleet.
Referring to the total cost of ownership, 42% of the buyers expect that it will decrease this year and 35% of them believe that it will remain stable. At the same time, 44% of the suppliers believe that they will see the total cost of ownership reduce this year while 29% expect to remain stable.
26% of the buyers expect to decrease the interest rate of the total cost of ownership while 32% of them expect to decrease the maintenance and repair. At the same time, 73% of the buyers expect the taxation to remain the same while 56% of them expect the residual value to decrease. 39% of the suppliers expect the interest rate to remain the same, and 69% of them believe that the management fee will also remain the same.
Lastly, the majority of buyers answered that they find no reason to change suppliers because of the Covid-19 crisis.
Written by Maria Gourtsilidouis. Here’s what you’ve missed?