Demand for full service car leasing on the rise Financial planning is important for companies

According to the company’s operational financial data, turnover of the full service car rental provider SIXT Leasing (SIA Transporent) has grown in the year of 2020 by 1.06 million euros or 6%, reaching 17.77 million euros. Restrictions aimed at the suppression of the Covid-19 pandemic have forced companies to switch to delivery services and individual mobility, thus significantly increasing demand for the services provided by SIXT. In 2020, the company has registered 633 new vehicles for its short-term and long-term rental customers, and this number accounts for 4% of the total number of new cars registered in Latvia in 2020 (according to the information provided by the “Latvian Authorised Automobile Dealers Association”, the total number of registered new cars last year was 15,642).

The economic situation in Latvia and across the globe directly affects the choices of entrepreneurs and the adopted decisions – small and medium businesses prudently look to the future, trying to find ways of operating while saving current assets. Car rental is a way for companies to deal with their mobility needs, including matters related to vehicle financing and car fleet maintenance. Possibility to reduce the risks caused by the variable vehicle exploitation costs and vehicle repurchase value at the end of the use or at the expiry of the contract are the factors helping to decide in favour of car rental services. Large companies focus on their core business and opt for the receipt of outsourced supporting services.

“Customers of SIXT full service car rental are large, medium and small companies of Latvia, as well as public and municipal administration institutions. At moments of any change in the market or tax policy, we can see changes in the decisions of entrepreneurs regarding the choice of vehicles and mobility in general. While some companies face falling turnovers, other companies find a way to grow. Availability of mobility services is of special importance at the moment. Our task is to help provide vehicles for companies, which have adjusted their business for the provision of contactless delivery services,” explains Arnis Jaudzems, SIXT General Manager in the Baltic states.

Full service car rental provides an opportunity to pay a fixed monthly rent without significant initial investments. In changing conditions, transparency of costs over the entire period of the contract has become especially important – customers appreciate the possibility to include all the vehicle-related services in a fixed monthly fee, thus avoiding unforeseen costs during the period of use of the vehicle.  

Customers of SIXT chose the vehicle brands most popular in Latvia in 2020 as well – Volkswagen (24% of all purchased vehicles), Toyota (16%) and Peugeot (12%). Most frequently chosen models – Volkswagen Passat, Toyota Corolla, and VW Golf. Basically, customers chose compact and small SUV vehicles, as well as commercial vehicles.

Most frequently, customers chose vehicles in the colour of the usual corporate standard - grey (39%), white (25%) and black (17%).

Global tendencies show a gradual transition from diesel vehicles to vehicles powered by petrol, hybrid and electric motors. 53% of the vehicles purchased by SIXT were equipped with petrol engines (including hybrids), 45% – with diesel engines, but 2% – with electric engines. Thanks to the development of the vehicle industry and the fact that customers more frequently choose hybrids and electric vehicles, SIXT has managed to reduce CO2 emissions of the fleet by 13% - from 135 g/km in 2019 to 118 g/km in 2020 (according to the NEDC standard).

Arnis Jaudzems, SIXT General Manager in the Baltic States: “The key task of mobility service providers is to adapt services to the situation swiftly and in good quality. The ability to adapt service, and adjust it to the variable demands of customers, are the factors determining the company’s ability to survive in today’s changing conditions. SIXT has adjusted the existing services and created new products – customers have available full service vehicle rental for 12 months. Service is used by companies, which want to use new vehicles for the provision of the operations with an option to prolong the term of its use or replace the car with a new one upon the expiry of the contract.”

In the Baltic states, SIXT (SIA “Transporent” group companies) take leading market positions in full service vehicle leasing and fleet management services, and the short-term rental market. In Latvia, SIXT is a stable market leader. In the neighbouring states, Lithuania and Estonia, the company continues rapid growth in the field of short-term and long-term rental by servicing growing numbers of vehicles for current customers and attracting new customers, successfully implementing the sale of services to companies and participating in public procurements. According to the operational financial data, in 2020, the consolidated turnover of SIXT group in the Baltics reached 31 million euros, which represents 1.06 million or 3.7% over the previous indicators. Growth has been achieved despite the fall of 2.3 million euros in the short-term rental segment due to tourism restrictions. In 2020, SIXT serviced more than 6,300 vehicles in the Baltic states.

Since 21 June 2010, the group of companies is a franchise partner of SIXT Leasing, SIXT rent a car and SIXT limousine service in the Baltic states. SIA “Transporent” is the parent company of the group of companies, which owns 100% of 4 subsidiary companies – SIA “Transporent auto noma” (Latvia), SIA “Transporent.com” (Latvia), OU “Transporent” (Estonia) and UAB “Transporent” (Lithuania).

About SIXT

SIXT is the leading mobility service provider in Europe, established in 1912 in Munich, Germany. At the moment, SIXT is available in more than 100 countries with 2,000 service points. SIXT provides car rental, car sharing, car pooling, full service car leasing and fleet management services, being a leader of technological innovations in these fields.

About SIXT in the Baltic States

In 2010, the fleet management company Transporent became a franchise partner of SIXT rent a car and SIXT leasing in the Baltic states. The company provides car rental and full service car leasing services, serves and consults fleets of the largest Baltic companies, as well as companies with a small number of vehicles, with a total number of 6,300 served vehicles. In the Baltic states, SIXT car rental offices are located in Riga, Liepāja, Tallinn, Tartu, Vilnius, Kaunas, Palanga and Klaipeda, as well as in the airports of these cities. More information about the company: www.sixt.lv.

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