Latin American fleet company, Fleet LatAm, announces the addition of AMAVE CEO as their latest advisory board member.
In Mexico, the practice of vehicle leasing is gaining traction, with both government entities and private companies increasingly adopting this cost-efficient solution for fleet management. While specific quantitative figures for leasing are not readily available, the contextual evidence points towards a growing trend.
Liliana Anaya, CEO of Mexico's vehicle leasing association (AMAVE), has confirmed this trend. AMAVE, which oversees 319,784 units under lease as of the end of Q4 2023, plays a significant role in the leasing sector.
Government institutions in Mexico have been turning to leasing as a means to manage their vehicle fleets more efficiently. This approach allows government agencies to avoid upfront capital expenditures and ensures continual vehicle updates and maintenance are handled by leasing companies. This practice aligns with global trends, where governments favour leasing to optimize fleet costs and operational efficiencies.
Corporations in Mexico are also embracing leasing as part of their employee compensation and operational strategies. Leasing offers tax advantages, easier fleet updating, and cash flow benefits compared to outright purchases. This is particularly true in the growing automotive and electric vehicle sectors, where financing options, including leases, are expanding.
The stable auto market context, with new vehicle sales, including premium segments like Porsche, increasing in 2023, and the growing global interest in electric vehicle financing, further encourage leasing schemes as part of sustainable corporate policies.
Mexico's trade and industrial activities remained stable at the end of 2023, with overall modest growth but sector-specific challenges in motor vehicles and parts exports. This economic environment encourages companies to optimize vehicle costs through leasing rather than ownership.
Liliana Anaya, a seasoned professional with extensive experience in the financial and leasing industry, will support Fleet LatAm's initiatives to foster business and innovation in Latin America's leasing sectors. The Fleet LatAm Advisory Board, which currently consists of 17 members, focuses on conferences, online events, industry training, communication, and networking.
According to Anaya, leasing is emerging as a preferred scheme for companies and the government in Mexico. In fact, 21% of AMAVE's fleet is leased by the government. The percentage of AMAVE's fleet under a pure leasing scheme stands at 70.5%.
Sources: [1] https://www.autonews.com/mexico/article/20230331/MEX01/303319999/mexico-posts-record-new-car-sales-in-2023 [3] https://www.greencarreports.com/news/1130874_mexico-to-incentivize-electric-vehicle-financing-with-low-interest-loans [4] https://www.statista.com/statistics/1103244/mexicos-gdp-growth-rate/ [5] https://www.autonews.com/mexico/article/20230915/MEX01/309159999/mexico-s-auto-sales-rise-in-august-as-electric-vehicle-market-grows
In theleasing sector of Mexico, AMAVE, overseeing 319,784 units under lease as of Q4 2023, signifies a significant role in the growing trend of leasing. The government, with 21% of AMAVE's fleet leased, and corporations, seeking tax advantages and cash flow benefits, are increasingly utilizing leasing schemes in both finance and business aspects.
