ALD has set out its ‘Move 25’ five-year strategic plan, which sets out ambitious growth targets, including to become a fully integrated sustainable mobility provider and the global leader in the car leasing industry.

ALD’s ‘Move 25’ five-year strategic plan sets out ambitious growth targets, including through new mobility products and by becoming a major player in electric vehicles

Overviewed at the firm’s Capital Markets Day last week, the plan’s ambitions are based on four key areas to drive sustainable growth.

This includes within full-service leasing and fleet management, where the firm says it sees significant growth potential in each of its four client segments: multinationals and large corporates, SMEs, corporate employees and private consumers.

The plans envisage that the number of total contracts will reach around 2.3 million by 2025 – including through direct and indirect channels.

A core part of this is an expanded geographical presence, targeting up to 50 countries; ALD said it’s still seeing very strong growth in all its existing markets, but would look to move into less-developed markets such as Asia. Growth would also come about through bolt-on acquisitions.

The main other organic growth drivers will be private lease and new mobility products, which are expected to increase at a c. 15% CAGR over 2019-2025, especially in ALD Flex (where the units are expected to double to around. 60,000 by 2025) and Used Car Lease (reaching around 125,000 units by 2025).

ALD will also look to make good on electric mobility opportunities, helping clients to shift to electric vehicles through an all-inclusive EV offering, targeted EV partnerships and a global EV Programme. This offers an end-to-end solution, including a global offer for home or office charging, the option for drivers to switch to an internal combustion-engined vehicle as and when needed, and consultation on TCO and analysis.

At the moment around 10% of ALD’s fleet is green – fully electric, hybrid or plug-in  hybrid. But the share of electric vehicles in new car deliveries is expected to rise to c. 30% by 2025 and by 2030, ALD is targeting around 50% of deliveries to be battery electric vehicles.

As a result, average CO2 emissions per vehicle for new contracts in 2025 are expected to be at least 40% below those of 2019.

The third key deliverable is a shift to multi-cycle and multi-channel basis, including developing new channels. This will see more vehicles remarketed direct to customers; ALD expects around 30% of its used vehicles to be sold or leased to retail customers by 2025, with used car lease reaching a total of around 125,000 vehicles. Benefits are two-fold: strong growth and margin opportunities along with reduced residual value risk.

To support these ambitions, the ALD Carmaker solution – which uses both a ‘clicks and bricks’ approach – will be implemented in 25 countries.

ALD will also drive investment in digital capabilities. An incremental budget of €66m (£59.2m) will be allocated to digital investments over the next five years.

“Move 2025 is an ambitious plan which leverages the transformation that we started five years ago to seize growth opportunities that we see in the medium- to long-term future. With this new strategic plan, ALD is positioning itself at the heart of the evolving mobility world and is strengthening its competitive edge to become a fully integrated sustainable mobility provider and the global leader in its industry,” said Tim Albertsen, chief executive officer of ALD.