Vehicle rental company for corporate fleets Arval recorded “strong growth” financial results in 2023 with annual net profit of 1.4 billion euros, up 15.2% compared to 2022, according to results published Friday.
Arval is achieving a very good performance in 2023 with a financed fleet of 1.7 million vehicles which increases by 6.9% compared to 2022, welcomed the company’s CEO, Alain van Groenendael.
The turnover of the BNP Paribas subsidiary increased by 22.9% to reach 16.1 billion euros, benefiting from the growth in long-term rental activity but also from the increase in price.
While the rental company’s fleet is up 6.9%, the value of its rental fleet has increased by 18%. The average price of a car has increased by 30% in the last four years, according to Mr van Groenendael. In 2023, it stood at 35,500 euros for all engines combined, or +6% in one year.
Another growing source of income is the resale of used vehicles.
This activity brought in 1.4 billion euros, up 19.8%, despite a used vehicle market where sales prices are gradually normalizing. A vehicle is generally rented for four years within a company and then, in the vast majority of cases, is resold to the crowd.
These good results allow Arval to achieve its objectives sooner than expected. The Arval Beyond plan will end at the end of 2024 instead of the end of 2025 and a new strategic plan will be unveiled by the end of the year.
In particular, it planned to reach a fleet of 2 million vehicles, including 700,000 electrified (100% electric or hybrid vehicles).
Currently, 166,000 100% electric vehicles make up the Arval fleet. In the last quarter of 2023, electric engines represented 22% of orders for new vehicles, the rental company said.
The CEO of the company wants to be confident since according to a study carried out by Arval among 8,000 companies in around thirty countries, 90% of the people questioned will maintain their fleet or develop it in the years to come, he indicated.