Will invest over Rs.200 cr to increase its business in India
ALD Automotive, the world’s third largest automobile leasing company and among the top players in India, said it would double its fleet size in India to 17,000 by 2014 with more companies opting for vehicles on operating lease rather than blocking capital to buy cars.
The company, a wholly-owned subsidiary of Société Générale Group, started its Indian operations in 2005, and has been steadily growing with the operating lease concept catching up fast among Indian corporates who are saving 6-9 per cent by procuring cars and light commercial vehicles from leasing companies. In the first six months of this calendar year, ALD Automotive has grown by 20 per cent as compared to 15 per cent year-on-year growth since 2008.
“We have outgrown the market. Growing at the current pace, we expect to double the fleet by the end of 2014 from 8,500 units at present,” Suvajit Karmakar, CEO, ALD Automotive Private Ltd., told The Hindu. He said the company would invest over Rs.200 crore to increase its business in India in this calendar year. “Looking at our growth, we are sure that the operating lease industry would achieve the growth mark of one lakh units by the end of 2015 from 35,000 units now,” he added. He said due to economic slowdown and cash crunch, many companies took steps to reduce their operating expenses and made better use of their capital which gave a boost to companies like ALD.
Other players in the market include LeasePlan, BNP Arval, Orix, Carzonrent, Daimler Financials Services, BMW Financial Services, Avis and Tranzlease.
ALD Automotive provides vehicles to over 650 corporates in India.