Passenger and Commercial Vehicles

The Passenger and Commercial Vehicles division provides leasing, rental and value-added services for passenger and commercial vehicles in South Africa and various other African countries.

The division originated as a supplier of vanilla leasing products 27 years ago and has evolved to become a provider of a full fleet management solution to clients. Substantial progress has been made in this area and in the year under review the division was able to achieve 35% growth in the number of vehicles under management. The ratio of leased to managed vehicles is now approximately 1:2,5.

The core product offering of commercial and passenger vehicle leasing has been supplemented by value-added services, including vehicle tracking products and accident management solutions. Clients are able to derive tangible benefits from these services, particularly in view of current driving patterns and behaviour.

This is supported by a proactive approach to accident management when incidents do occur, with a focus on intelligent procurement and cost control.

The introduction of a wide range of annuity income value-added services increases the ability of the division to perform strongly through the economic cycle. The value-added component, together with the division’s unique re-marketing strategy for end of lease vehicles, also allows the division to take on an appropriate level of residual risk.

The division applies a stringent approach to selecting and replacing contracts. Primarily blue chip clients are serviced, which ensures that the risk of bad debt is kept at a minimum.

The division operates under two primary business units:

Eqstra Fleet Management delivers end-to-end fleet management solutions which enable clients to achieve efficiencies and cost savings over their entire fleet supply chain for passenger and light commercial vehicles. This is supported by a unique and comprehensive driver management approach.

Eqstra FlexiFleet offers fleet management solutions in the medium and heavy commercial vehicle market, including leasing and rental. The division owns and operates a national network of commercial vehicle workshops and panel repair shops and has a commercial vehicle body and trailer manufacturing facility.

The division is a provider of fleet management solutions with products tailored to the specific needs of each client. The division offers customised solutions which cover passenger vehicles through to commercial vehicles of all size.