Report Coverage
This report on Fleet Management includes information on the size and state of the sector and major influencing factors including the effects of coronavirus, economic factors and corporate actions and developments. There are comprehensive profiles of 34 companies including players in the banking sector such as Absa Vehicle Management Solutions, Bidvest Bank and First National Bank’s FNB Fleet Services, privately-owned and JSE-listed players including Eqstra (enX) and Fleet Africa (Super Group), Motus Corporation, Dikala Group and telematics players such as Cartrack, MiX Telematics, Ctrack and Netstar.
Introduction
According to the National Association of Automobile Manufacturers of South Africa (Naamsa), fleet sales accounted for 2.9% (377 vehicles) of total sales of just under 13,000 vehicles in May 2020, reflecting the impact of the lockdown on car sales. In June 2020, when car sales were allowed to resume, fleet sales increased to 3.7% (1,179 vehicles) of total sales of 31,867 vehicles. Privately owned, JSE-listed players and the fleet management divisions of the major commercial banks compete for market share in a market where the major customer segments, namely car rentals, government, companies and couriers, have been severely affected by coronavirus. Weak economic growth that was exacerbated by the lockdown may result in a reduction in fleets. Demand for courier services increased when e-commerce resumed in June 2020, but not all couriers have their own fleets.
Strengths
• An established local passenger car market is providing choice to fleet managers and owners.
• Banks are adequately capitalised to provide loans to fleets.
• Formation of partnerships with different players in the value chain to improve efficiencies.
• Technological innovations are driving improved efficiencies in the sector.
• The industry is well-supported by innovative technology and products for fleet management and crime prevention.
Weaknesses
• Fleet management is not a dedicated operational activity in most companies.
• The industry is vulnerable to price fluctuations of new and used vehicles.
• Weak economic conditions in sub-Saharan Africa affect performance.
Opportunities
• Partnerships with telematics service providers to increase competitiveness.
• The continuing trend by large companies to outsource the management of their fleet.
• The provision of consulting services in fleet management to existing and potential customers provides an opportunity to expand the business.
Threats
• Low economic growth.
• Rising operating costs are lowering profit margins.
• Vehicle theft and hijackings are adding to costs like insurance.
Outlook
The sector faces challenges created by reductions in fleet sizes driven by customers’ closures in a weak economic environment, and reduced demand if employees continue to work from home. The focus of fleet owners on fuel efficiency and low cost of ownership is expected to strengthen the adoption of telematics in vehicles. Commentators said the private sector will need to put pressure on government to provide infrastructure so that more electric cars can be produced in order to comply with lower carbon emissions targets.

Full Report
R 1 900.00(ZAR) estimated $107.09 (USD)*
Industry Landscape
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Historical Reports
The Fleet Management Industry in South Africa 2018-02-21
R 1 900.00(ZAR) estimated $107.09 (USD)*
View Report Add to CartThe Fleet Management Industry in South Africa 2015-12-01
R 1 900.00(ZAR) estimated $107.09 (USD)*
View Report Add to CartTable of Contents
[ Close ]PAGE | ||
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1. | Industry Value Chain | 4 |
2.2. | Geographic Position | 5 |
3. | SIZE OF THE INDUSTRY | 5 |
4. | STATE OF THE INDUSTRY | 7 |
4.1. | Local | 7 |
4.1.1. | Corporate Actions | 8 |
4.1.2. | Regulations | 8 |
4.1.3. | Enterprise Development and Social Economic Development | 9 |
4.2. | Continental | 10 |
4.3. | International | 11 |
5. | INFLUENCING FACTORS | 14 |
5.1. | Economic Environment | 14 |
5.2. | Rising Operating Costs | 14 |
5.3. | Technology, Research & Development (R&D) and Innovation | 15 |
5.4. | Labour | 16 |
5.5. | Cyclicality | 17 |
5.6. | Environmental Concerns | 18 |
5.7. | Crime and Road Safety | 20 |
6. | COMPETITION | 21 |
6.1. | Barriers to Entry | 22 |
7. | SWOT ANALYSIS | 23 |
8. | OUTLOOK | 23 |
9. | INDUSTRY ASSOCIATIONS | 24 |
10. | REFERENCES | 25 |
10.1. | Publications | 25 |
10.2. | Websites | 25 |
APPENDIX 1 | 27 | |
Summary of Notable Players | 27 | |
COMPANY PROFILES | 37 | |
58FLEET (PTY) LTD | 37 | |
ABSA VEHICLE MANAGEMENT SOLUTIONS (PTY) LTD | 39 | |
AFRIRENT (PTY) LTD | 41 | |
AMASONDO FLEET SERVICES (PTY) LTD | 43 | |
ARIVA RENTALS (PTY) LTD | 45 | |
BIDVEST BANK LTD | 47 | |
CARRUS INFORMATION TECHNOLOGY (PTY) LTD | 52 | |
CARTRACK HOLDINGS LTD | 54 | |
CTRACK HOLDINGS (PTY) LTD | 57 | |
DIKALA GROUP (PTY) LTD | 59 | |
ENX CORPORATION LTD | 61 | |
FIRST NATIONAL BANK (DIVISION OF FIRSTRAND BANK LTD) | 63 | |
FLEET HORIZON SOLUTIONS (PTY) LTD | 65 | |
FML (DIVISION OF ISIPHO CAPITAL HOLDINGS (PTY) LTD) | 66 | |
G-FLEET MANAGEMENT (DIVISION OF GAUTENG DEPARTMENT OF ROADS AND TRANSPORT) | 68 | |
KHULA FLEET MANAGEMENT (PTY) LTD | 70 | |
KWELAA FLEET MANAGEMENT CC | 71 | |
LIQUIDCAPITAL (PTY) LTD | 73 | |
MERCHANT WEST (PTY) LTD | 75 | |
MIX TELEMATICS AFRICA (PTY) LTD | 77 | |
MOIPONE GROUP FLEET (PTY) LTD | 79 | |
MOTUS HOLDINGS LTD | 80 | |
NEDFLEET (DIVISION OF NEDBANK LTD) | 84 | |
NETSTAR (PTY) LTD | 85 | |
PACE CAR RENTAL (PTY) LTD | 88 | |
STANNIC FLEET MANAGEMENT (DIVISION OF STANDARD BANK GROUP LTD) | 89 | |
SUPER GROUP AFRICA (PTY) LTD | 91 | |
TALIS FLEET (PTY) LTD | 93 | |
TRACKER TECHNOLOGY AFRICA AND MIDDLE EAST (PTY) LTD | 95 | |
VINCEMUS INVESTMENTS (PTY) LTD | 96 | |
VOLKSWAGEN FINANCIAL SERVICES SOUTH AFRICA (PTY) LTD | 101 | |
VUSWA FLEET SERVICES (PTY) LTD | 103 | |
WESBANK (DIVISION OF FIRSTRAND BANK LTD) | 105 | |
ZEDA CAR LEASING (PTY) LTD | 107 |