Alain van Groenendael, president and CEO of Arval: “2023 was an exceptional year, as reflected in the growth of our chartered fleet, the progress we have made in numerous areas and the development of our partnerships. We can be truly proud of how much We reached”.
Positive results for Arval in 2023: the fleet reached 1,701,540 vehicles rented worldwide, for an organic growth of 6.9% compared to 2022. Important progress was recorded in relation to fleet electrification and connected vehicles. The forecasts for 2024, the last year of the Arval Beyond strategic plan, are positive. This is what the company communicated in a note.
Having set a target of 350,000 electric vehicles (BEVs) and 700,000 electrified vehicles in the global fleet by 2025, thus contributing to the expected 35% reduction in fleet CO2 emissions compared to 2020, Arval reached 166,363 BEVs rented at the end of 2023, for an increase of 85% on 2022.
To support the adoption of electric vehicles, Arval recently announced the launch of a new offering, Arval Charging Services, which allows you to rent a vehicle together with a charging station, available for both business and private customers. Furthermore, an international agreement was signed with ChargePoint, an important operator in the vehicle charging sector, which will allow Arval customers to have charging points in the office and at home, with an automatic reimbursement system for drivers and to have access to a network of more than 500,000 charging points in Europe. This new offer is part of the wider range of solutions already provided by Arval in favor of the energy transition which include not only electric vehicles, but also various alternative mobility formulas.
Arval has further strengthened its international collaboration with its partner Element, signing a three-way agreement with Sumitomo Mitsui Auto Service (Smas). The agreement will give global alliance customers access to rental and fleet management solutions in Japan, Thailand, India and Indonesia. Additionally, the Alliance has expanded to include Sixt Mega Rent in Serbia, Montenegro and Bosnia-Herzegovina. Together, Element-Arval Global Alliance partners manage more than 4.4 million vehicles and operate in 56 countries across 5 continents, providing added value to all of Arval’s international customers through deep expertise and global expansion.
In addition to maintaining solid partnerships with banks, primarily Bnp Paribas (but also with CaixaBank in Spain and Portugal, UniCredit Bank in Austria, Erste Bank in Slovakia…), Arval has continued to work with other primary players in the automotive sector in the scope of international strategic partnerships such as those launched with Hyundai, Kia, Honda, Sixt, Astara, Emil Frey France, Mg Motor and Volvo Cars. Arval also operates through white labels with strategic partners. In January 2023, Arval, Bnp Paribas Cardif and Bnp Paribas Personal Finance announced the launch of the partnership with Jaguar Land Rover, which focuses on integrated financing offers for mobility solutions in nine European markets. In June, Arval began its collaboration with manufacturer MG Motor by launching a joint vehicle subscription offering: “MG Auto Abo powered by Arval”. In October, Arval signed an agreement with a premium electric car brand, Zeekr, together with BNP Paribas Personal Finance.
As a multi-brand rental company, Arval will continue to expand the selection of models available to its customers and is preparing to announce new international partnerships in the coming period. In addition to supporting customers in their energy transition journeys, Arval has signed partnerships and launched various offers to stimulate the adoption of alternative mobility solutions.
The development of shared mobility solutions for employees also continued during 2023, with another 6 countries involved. Arval Car Sharing is now available in 15 countries with a total of 125,000 bookings made in 2023 on the platform; Arval Mobility Pass, a simple and innovative solution that combines a payment card, an app and a management platform to improve the mobility of employers and employees, was launched in 2023 with Edenred in Brazil, Betterway in France and XXImo in the Netherlands; Available in 14 countries, Arval Bike Leasing saw a 65% increase in 2023 compared to the previous year. To support this growth, Arval has extended long-term bike rental in France through its partnership with specialist start-up Zenride.
At the end of 2023, Arval launched its used vehicle rental offer, Arval Re-Lease, in 21 countries, 5 more than last year, thus providing customers with an intelligent mobility solution that allows access to of high quality at an attractive cost, while extending the life of the cars. The Arval Re-Lease fleet grew by 139% compared to the previous year, thus demonstrating customers’ enthusiasm for this new offer.
Arval has reached 633,000 connected vehicles in its fleet, for an increase of 39% compared to 2022, thus allowing it to get closer to the goal of 80% of connected vehicles in the fleet by 2025. Thanks to telematics and data intelligence, Arval Connect allows customers to optimize fleet costs, improve driver safety, speed up the energy transition and manage their teams more efficiently. With the “connected insurance” offer, Arval goes even further by providing customers with a reduction in the monthly rental fee based on their driving style. Successfully launched in Italy, this service is already showing the effect of decreasing the number of road accidents and will soon be developed in Spain, Holland and Belgium.
In 2024, in a rapidly evolving market, Arval’s ambition will be to build on the positive momentum of recent years. This is what the company, which has released the data relating to 2023, predicts. At the center of the strategy, it indicates, there will be the acceleration of the energy transition of fleets, thanks to the expansion of the available electric vehicle models, the development of partnerships for charging, to the consultancy provided to customers for the definition of mobility policies that also include electric vehicles and to mobility solutions complementary to rental, which can limit CO2 emissions.
Arval has already started to follow this path with the launch of Arval Charging Services at the beginning of January, which involves the rental of an electric vehicle together with the charging point. This new proposal completes the Arval ecosystem which already makes energy cards available to its customers for charging at roadside infrastructures and the reimbursement of electricity consumption for home charging.
Furthermore, Arval’s strategy was awarded the EcoVadis Gold Medal in 2024, placing Arval in the top 5% of rated companies. This award reflects the commitment of Arval collaborators, engaged in more sustainable activities at all levels of the company. With most of the objectives set by Arval Beyond set to be achieved already in the current year, 2024 will also be characterized by the completion of the global strategic plan presented in 2020 and will see the definition of a new strategic plan, which will be announced at beginning of 2025 and which will mark a turning point in the history of the company.
“2023 was an exceptional year, as reflected in the growth of our chartered fleet, the progress we made in numerous areas and the development of our partnerships. We can be truly proud of what we have achieved.” This is what Alain van Groenendael, president and CEO of Arval, declared in commenting on the company’s data from last year.
“This bodes well – he continues – for the opportunities and challenges that await us in 2024, which will be a year of transition for the market and for Arval. With the support of Bnp Paribas, our collaborators and partners, we will continue to support our growth by offering customers increasingly important support so that they can continue their energy transition projects”, he concludes.