Trends in Turkey: Proactivity, Transparency and Digitalisation

Turkey is still a fast-growing market in the fleet management. As a way of transportation, passenger cars are still more preferable than public transportation. There is no need to go very back: Even five years ago, Turkish companies used to regard fleet management as the “car management” only. Now, they have started to learn about TCO, albeit slowly, and to notice that fleet management is more than a car management only but rather a complete “service management” that is likely to pull down their TCO.

New Trend: Solutions for SMEs
SMEs are showing more and more interest every day to fleet management. In particular, thanks to operational fleet leasing companies, SMEs have started to better understand the fleet management. In fact, nearly all global companies do operational fleet leasing in the market. But SMEs and local big companies are yet at the very beginning of the journey. That’s the reason why it is very important to understand the demands of SMEs in relation to fleet management.

While talking about the demands of SMEs, in fact it is very important here to understand and have insight into the dynamics of Turkish companies.

One should pay attention to topics below for these dynamics.

1.       Proactivity: Yes, proactivity is indeed very important all over the world but it is a little bit more important for Turkish market. Because Turkey is at very beginning of things when it comes to fleet management. All companies are willing to pull down costs but in fact they do not know how to do it. They think that pulling down costs is merely to buy or rent the cheapest automobile from the cheapest supplier.  They are still dominated by the notion that “you win when you are buying.” In fact, this is only the tip of iceberg.

And just at this point, it is necessary to guide Turkish companies. Just showing how to pull down TCO and guiding them will make them very pleased. Besides, as a society, we really love to be guided; this is a part of our culture.

For instance, all big operational leasing companies and global players in Turkish market offer online reporting to their customers. User companies only check these reports. Yes, they check and read but are unable to take actions. If operatonal leasing companies read their reports and provide them with exclusive cost-decreasing methods based on the analyses of these reports, they will become irreplaceable.

Or vehicle tracking systems. Vehicle tracking systems are mostly used in Turkey to check and see location. In fact, this feature should be the one that is used the least. Where suppliers of vehicle tracking systems monitor user characteristics and driver behaviours and offer cost-decreasing methods to fleet managers, this will be a very effective solution.
 
2.       Transparency: SMEs actually display a suspicious approach to fleet management because they do not truly know about what this fleet management is. Besides, Turkey is a market that started to get mature recently. In the past, companies providing fleet management services used to offer their services at unauthorized dealers; they used unoriginal spare parts and they issued extra invoices to customers although they had never mentioned them before. Considering all these poor services, it is not unusual for firms to display a suspicious approach. 

In this case, companies who off the fleet leasing services must strictly follow up a very transparent policy so that they can gain the trust of the doubtful companies. It is necessary to tell certain things very well and very wisely: Service dealers where cars are to be repaired, how to use spare parts, services subject to a fee or services that are free etc.
 
3.       Digital Platforms: Turkey is among those top countries where digital platforms are most widely used. In fact, we are very open and eager to embrace digital innovations. In light of this fact, companies that place importance on digital platforms in fleet management and are capable of offering speed and efficiency this way will become prominent and be one step ahead of their rivals.
 
What the Future stores for us: Car-Sharing and Individual Long-term Leasing
Trends are changing. Turkey is still a country with a huge young population. In a city like Istanbul with a population of 17 million people, youngsters are not that willing to buy and own a car. And now these young people have started to work as fleet managers. They will certainly adapt themselves to these trends and they and their companies will move to car-sharing system. According my forecasts, at least half of every ten companies will strictly use this system in next ten years.

Another rising trend that appears in nearer future is individual long-term leasing. Now, let’s put the cost element aside; time is the most essential thing for young people. They are already behind it. For this reason, no one is willing to waste time and grapple with car insurance, comprehensive car insurance, tax and maintenance works and individual long-term leasing is getting more popular everyday. The only handicap here is that individuals may not deduct taxes for this kind of use from their income taxes; if the government addresses that matter in a regulation, individual long-term leasing will be simply unstoppable.

Article written by: Nevzat Girgin