The Shift in Light Truck Leasing: From Profit to Struggles in the New Energy Market

Light truck leasing has become a survival strategy for dealers amidst the current freight market conditions, as expressed by a dealer. Following 2022, the new energy logistics vehicle leasing market saw explosive growth, but recent interviews revealed that profitability in leasing has started to decline. Industry insiders point out several challenges: high insurance costs, low freight rates, unstable cargo sources, and intensified market competition. So how did light truck leasing transition from being profitable to unprofitable, and what direction should this operational model take in the future? In just two years, leasing has shifted from profitability to 'not profitable'. The surge in leasing as a mainstream sales method for new energy logistics vehicles stems from a change in the commercial logic of the supply chain. Manufacturers and dealers now prioritize 'users', adapting to changing user demands. The popularity of leasing offers users a low-risk way to utilize new energy logistics vehicles, a trend that became more pronounced after the removal of subsidies in 2023. However, as leasing becomes mainstream, the influx of players has put pressure on profitable business models. Typically, leasing businesses operate on a 'rent-to-cover-loan' model, with monthly rents covering loan repayments, potentially leaving some surplus. After deducting labor costs and shared expenses for maintenance and insurance, vehicles can be sold after three years for residual value. In ideal conditions, profits from rent differentials can lead to rapid business growth. For instance, a dealer from Henan mentioned two leasing methods: one involves renting out vehicles obtained from suppliers to users for a small profit, while the other involves hiring drivers for stable operational needs, allowing for some profit while benefiting the drivers. However, many dealers now report that leasing has become unprofitable. Key reasons include significant price drops for new vehicles leading customers to purchase instead of rent, high insurance costs, maintenance expenses, and rapid depreciation of new energy vehicles. A dealer from Tianjin provided a financial example: for an 180,000 RMB light truck, a three-year loan results in monthly payments of about 3,770 RMB. With a rental fee of 5,000 RMB, and after deducting 1,500 RMB for insurance and 500 RMB for maintenance, the monthly profit could result in a loss of nearly 800 RMB. Thus, relying solely on rental income is no longer viable. Looking forward, while the current economic environment presents challenges, the demand for leasing remains essential in the logistics sector's transition to new energy. Future operations in electric light truck leasing are expected to evolve from simple vehicle rentals to competing within an 'energy logistics ecosystem'. This transition emphasizes the need for leasing companies to enhance their data integration capabilities, including AI scheduling and residual value prediction. Many dealers are still stuck in traditional leasing mindsets, focusing on customer acquisition and leveraging financial products. In this competitive landscape, dealers must innovate and become 'capacity solution providers'. As one dealer remarked, drivers prefer to rent from dealers with cargo sources and operational capacity. The core competitive advantage in leasing lies in service quality; thus, dealers need to establish comprehensive service systems, including rental, charging, maintenance, and resale, while implementing standardized service processes and digital management tools to optimize operational efficiency. In conclusion, the electric light truck leasing market is undergoing a transitional phase from 'explosive growth' to 'rational adjustment'. The earlier model, reliant on policy benefits and financial leverage, is unsustainable. The demand for leasing remains, especially among small logistics firms and individual drivers seeking flexible solutions. Future competition will hinge on the ability to provide 'capacity ecosystem services', necessitating a shift from traditional leasing concepts to becoming 'capacity solution providers'.