In the latest Loopit Vehicle Subscription Utilisation Index, commercial vehicles have seen a significant surge in demand with both Isuzu and LDV climbing ranks in the Top Subscribed Vehicles by Make category. The popularity in commercial vehicles has also been reflected in the Top Subscribed Vehicles Over USD$35,000 category with the top four spots being taken by:
- Isuzu D-MAX
- Ford Ranger
- Toyota Hilux
- Mazda BT-50
Interestingly enough, the average subscription duration across the four commercial vehicles is around 179 days working out to be around the six month mark. This increased demand is a reflection of the shift from long-term solutions such as leasing and rental to subscription-based ownership where benefits such as flexible arrangements without any lock-in contracts are becoming more popular for emerging customer segments like corporate fleets and small business owners. We expect this trend to continue especially as used car prices and interest rates remain high, causing more businesses to alleviate capital expenditure on their vehicle fleet. This also provides an unprecedented opportunity for fleet companies to enter the car subscription race who can earn additional revenue by extending the useful lifecycle of each asset prior to disposing of the vehicle when market conditions become ideal.
About the Loopit VSU Index Methodology
The VSU Index measures vehicle utilisation on subscription rather than individual vehicle volume. Due to the inherent flexible nature of car subscription, vehicle utilisation is measured by considering the cumulative number of days in which any given vehicle is utilised within an active subscription during the monthly reporting period. In this way, we equally consider utilisation for individual vehicles being utilised across multiple subscribers, as well as individual vehicles that remain with the same subscriber for longer periods.