So says Frost & Sullivan, adding that with only 22% of the fleet market currently addressed, the untapped potential for operational leasing companies is immense.

The company’s “Strategic Analysis of the Turkish Fleet Leasing Market” finds that new vehicle sales to operational leasing companies will increase from 69,000 in 2012 to 123,000 in 2018. The market in the country is likely to witness the highest growth rate in the region, overtaking several European countries.

‘Benefits such as lower costs and superior operational fleet management have encouraged the adoption of fleet leasing services in Turkey,’ said Frost & Sullivan automotive and transportation research analyst Hikmet Çakmak. ‘High vehicle taxes in the country too, push bulk fleet buyers to choose operational leasing over outright purchases.’

Currently, pharmaceutical, healthcare and fast-moving consumer good firms contribute the highest to market revenues. With operational leasing companies reaching out to small and medium enterprises and developing new business models, the operational leasing car parc is expected to reach 300,000 units by 2019. As a result, global players, investment funds, and private equities will be eyeing the Turkish operational leasing market.

On their part, leasing companies must explore partnerships and acquisitions to improve quality of service and introduce new mobility solutions, according to Frost & Sullivan. For instance, demand is expected to grow for hybrids and electrical vehicles even though diesel vehicles currently account for almost 90% of the leasing market.

‘While new business models and enhanced service quality will spur operational leasing, the lack of relevant legislations hampers market development,’ said Mr Cakmak. ‘Regulations that restrict the leasing of light commercial vehicles add to the challenge. Operational leasing enterprises must educate and try to convince the government to enforce controlling mechanisms for operational leasing.’