PMV: What is your connection to fleet finance?
Ajay Narain: I am the general manager of LeasePlan Emirates, a fleet management and finance firm headquartered in Abu Dhabi, UAE.
PMV: How was business for LeasePlan Emirates during 2014?
AN: It was a very good year for us. Our portfolio grew by 24%. This is high, double-digit growth. We also focused on making it easier for our clients to lease vehicles. Consequently, our client satisfaction score jumped from 83 to 93. In addition, we saw healthy top-line and bottom-line growth in terms of our revenues.
PMV: What products did you introduce last year?
AN: We rolled out our FlexiPlan product for the industrial fleet sector. This means that we can now offer short-term leases to our customers and prospects. There are a number of corporate and government institutions that have requirements for leases less than two years. Our FlexiPlan product caters to that segment, whereas our core product is for leases of two years and above.
PMV: How has uptake been for FlexiPlan?
AN: It is moving in the right direction. Whilst most of our growth came from our core, long-term lease product, we have seen very encouraging trends in the FlexiPlan industrial fleet segment. Indeed, the response from the market has been even better than anticipated. We have also introduced the LeasePlan Direct channel, through which every two months, we come up with bespoke offers for both corporate and governmental clients.
PMV: Is the shift towards leasing and finance beneficial for the GCC market?
AN: Absolutely. Aside from the convenience factor, leasing and finance mean that companies don’t have to employ separate admin teams to look after fleet maintenance. This model results in numerous efficiencies and tangible savings in terms of cost.
In many ways, leasing is a means of financing. By opting for an operating lease, instead of spending cash to obtain a vehicle, you can reinvest that cash into your business. This is an especially effective strategy within the construction industry because it means that you don’t have to waste capital buying cars and trucks.
In addition, Emirates LeasePlan offers a fleet consultancy service. We look at the specific requirements of our clients and make recommendations in terms of vehicle numbers, makes, models, and also, their usage. We then return with a tailored proposal, which in itself, results in a range of cost savings for our customers.
PMV: Will LeasePlan Emirates grow its portfolio further in 2015?
AN: We will be looking very closely at the light commercial van sector. Market estimates based on our own surveys have shown that within the segment of commercial vehicles, approximately 35% are classified as heavy commercial vehicles, whereas 65% are light commercial vehicles. We want to grow our presence within this sector.
