Arval: 15% growth target for APAC in 2017
Arval: 15% growth target for APAC in 2017
Arval is one of the international leasing companies to have made inroads into the APAC region. Tero Tapala, General Manager Region Asia for Arval, explains the company’s thinking and ambitions.
How many vehicles do you manage today in Asia, in which countries and what is the objective for 2017?
At Arval, the Asia Region covers 4 countries: Russia, India, Turkey and China.
China is the most recent market we entered, with a first step in 2012, and Arval Jiutong created in 2015. This is a Joint Venture we built with Shanghai Ba-shi, leader in full-service leasing in Shanghai and one of the largest players in China.
In 2016, Arval registered 8.4% growth in the world, and 15% in APAC. A figure which proves the dynamism of the region and the interest of companies towards full service leasing. Turkey and Russia are the fastest growing entities with over 20% year on year growth. All in all, Arval leased almost 37,000 vehicles in APAC at the end of 2016.
For 2017, the growth target for Arval in APAC remains the same: to reach 15% growth by the end of the year.
How are you going to realize your ambitions in Asia in terms of the fleet and lease business in 2017: what actions, developments?
We are seeing a great deal of interest from our clients in our new digital solutions, which can provide them with the transparency they are looking for to pilot their fleet in terms of utilization, emissions and costs. We are progressively launching our digital products, and Arval Active Link (Arval telematics solutions) will be made available to TEB Arval clients in Turkey this year. On top of this, companies in APAC are more likely to choose the all-inclusive full service leasing package, and we believe that Arval Outsourcing Solutions ideally supports their needs. Last but not least, Arval’s growth in APAC also relies on Arval’s cross business capability, whether with the BNP Paribas Group, or with TEB Bank in Turkey.
Coupled with the dynamic marketplace, Arval will globally focus on exceeding its client’s requirements in terms of flexibility, continued excellence in service quality, and build on the strength of its services and innovative approaches.
Alongside fleet management and financing, what other mobility services are you developing – or do you aim to develop – for the Asian market?
We are looking actively at the evolution of the markets, especially in China where the corporate mobility topic is in motion.
For the time being, we provide short, mid and long-term rental services in China, with and without chauffeurs. Some of this business, such as airport pick-up, could be compared to a limousine service in Europe.
And does Arval have other plans to make sure international customers are fully served in APAC, by entering new countries, through mergers, a new organization…?
After more than one year of Arval Jiutong’s existence in China, and of considerable integration efforts, the company is now fully equipped with a brand new IT system to manage and support the fleet business, and is ready to step into the world of Arval advanced digital solutions and services. Arval Jiutong’s network is rapidly expanding, and it is particularly important for Arval international clients who are looking for a trustworthy and strong partner to manage their corporate mobility in China.
Arval has no concrete plan yet to enter a new territory in APAC. However, thanks to the Element-Arval Global Alliance – which today covers more than 50 countries worldwide with 3 million vehicles – Arval is very well positioned to respond our clients’ needs in the APAC region, even beyond its direct operations in China, India, Russia and Turkey.
Finally, the Arval International Business Office (IBO) has the expertise to design, optimize and implement customized fleet strategies for Arval International customers and implement the global contracts throughout the network of Arval subsidiaries and partners, in APAC and everywhere else around the globe.
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