Mumbai: Ayvens has outlined a new strategic plan through 2029 aimed at resuming profitable growth, improving operating efficiency and raising shareholder returns, with the global mobility and vehicle leasing company targeting a Return on Tangible Equity, or ROTE, of between 14% and 16% by 2029.
The target represents an increase from the 13% to 15% range set under its PowerUP 2026 programme. Ayvens is also targeting a Common Equity Tier 1, or CET 1, ratio of about 12.5%, compared with around 12% under the earlier plan.
The company expects its cost-to-income ratio to improve by four percentage points to approximately 49% in 2029 from around 53% in 2026. It also plans a dividend payout ratio of between 50% and 60%, alongside the return of excess capital. PowerUP 2026 had envisaged a 50% payout ratio.
Ayvens said the new plan marks a shift from the integration-focused PowerUP phase, which brought together ALD and LeasePlan, towards a period centred on growth, operational discipline and transformation.
In its statement, Ayvens said:
“I am pleased to share today Ayvens 2029 strategic plan.
As the execution of the PowerUP 2026 plan is about to reach its successful conclusion with the integration of ALD and LeasePlan and the delivery of strong financial results, Ayvens will now enter into a new development phase based on resuming profitable growth and putting operational excellence at the heart of all our processes and actions.
The execution of this strategic and financial roadmap will lead to strong value creation for all stakeholders and upgraded financial targets, notably a Return on Tangible Equity in the range of 14% to 16%.
I would like to thank our employees for their unwavering commitment and professionalism to better serve our customers every day.”
Fleet growth to focus on selected markets and segments
Ayvens has organised its 2029 strategy around three priorities — Grow, Excel and Transform.
Under the growth pillar, the company expects the operating lease market to continue expanding, although at a modest projected rate of 0.4% annually. By comparison, passenger-car registrations are projected to decline from 13.3 million units in 2025 to 12.5 million in 2030.
Ayvens aims to increase its funded fleet by at least 3% between 2026 and 2029, focusing investment on more profitable countries and customer segments.
The retail fleet is targeted to grow by 15% during the period, exceeding 900,000 vehicles in 2029 compared with 780,000 vehicles in 2026.
Its light commercial vehicle, or LCV, fleet is expected to grow by 10%, reaching more than 580,000 vehicles in 2029 from more than 530,000 in 2026.
The company also plans to generate additional service revenue by increasing the penetration of its insurance and damage-cover products from 53% in 2026 to 56% in 2029.
Ayvens Power, its electric-vehicle charging solution, is scheduled to expand to 15 countries by 2029 from two countries currently.
AI and technology to play bigger role in cost reduction
Operational efficiency forms the centrepiece of the company’s “Excel” pillar.
Ayvens plans to reduce operating expenses by simplifying processes and harmonising its technology infrastructure. Its IT intensity ratio is expected to decline from approximately 15% to around 12%.
At the same time, the group intends to increase its capacity to implement new technology through a higher change-to-run ratio and wider use of artificial intelligence.
AI-based automation will be introduced across customer-facing and corporate functions, with Ayvens estimating efficiency gains of around 30% across eight core processes covering Commerce, Finance, and Services & Operations.
In other words, artificial intelligence is being asked to do more than write meeting summaries — it is being given a measurable place in the efficiency programme.
The company is also targeting its service-cost base. Repair, maintenance and tyre expenses amounted to €2.6 billion in 2025, covering a fleet of 3.1 million vehicles.
Ayvens expects sourcing initiatives and tighter cost controls to reduce its net expenditure in this area by around 2%.
Cost-to-income ratio targeted at 49%
Ayvens expects its cost-to-income ratio to fall from approximately 53% in 2026 to around 49% in 2029.
The company said external factors, including inflation and electrification, are expected to create a cumulative five-percentage-point negative impact. Ayvens has observed lower maintenance margins from battery-electric vehicles compared with other powertrains.
These pressures are expected to be more than offset by growth and upselling initiatives, which are projected to deliver a cumulative three-percentage-point benefit, and productivity improvements, including AI-related efficiencies, which are expected to contribute six percentage points.
Used EV leasing identified as long-term opportunity
Under the “Transform” pillar, Ayvens is preparing for structural changes in both automotive retail and vehicle leasing.
The group sees significant long-term potential in leasing used electric cars as improvements in EV pricing, driving range and charging times make second-hand battery-electric vehicles more attractive to customers.
Ayvens believes lower maintenance costs for used BEVs could eventually support more affordable mobility products than those based on new vehicles, potentially addressing concerns about vehicle affordability in Europe.
The company expects its used-car leasing fleet to record a compound annual growth rate of 13% between 2026 and 2029, taking it above 100,000 vehicles as an initial milestone.
Fleet emissions targeted to fall sharply
Sustainability remains one of the foundations of the strategic plan alongside employees and risk management.
Ayvens expects average CO₂ emissions from its leased fleet to decline from 101 grams per kilometre in 2025 to between 75 and 85g/km in 2029 as electrification progresses.
The company said data and AI would also play a larger role in its transformation while customer requirements would remain central to decision-making.
Ayvens sets Eurozone assumptions for 2027-29
The financial plan assumes gradually improving macroeconomic conditions across the Eurozone.
Ayvens expects GDP growth to move towards approximately 1.5%, inflation to decline to around 2%, and the European Central Bank deposit facility rate to gradually move towards 2.75%.
Electrification, meanwhile, is expected to accelerate.
Ayvens projects battery-electric vehicles will account for around 50% of the market in 2030, up from approximately 20% in 2025.
The company expects uncertainty surrounding residual values to decline as EV technology improves and consumers become more comfortable with electric vehicles.
Prices of new and used plug-in hybrids and battery-electric vehicles are expected to decline, with a more pronounced reduction for BEVs. Prices for internal-combustion and hybrid vehicles, by contrast, are expected to increase slightly.
Earning assets expected to grow around 10%
Against that backdrop, Ayvens expects its earning assets to grow by approximately 10% between December 2026 and December 2029, with growth accelerating through the period.
Overall margins are expected to increase in absolute terms, although margins measured in basis points of earning assets are projected to soften slightly because of electrification.
The contribution of used-car sales to gross operating income is expected to remain low, while operating expenses are forecast to decline in absolute terms.
Funding programme to remain diversified
Ayvens also detailed its expected annual funding requirements for 2027 through 2029.
The company plans annual net retail deposit collection of between €1 billion and €2 billion, securitisation issuance of between €1 billion and €2 billion, and bond issuance of between €2 billion and €3 billion.
It said diversification across these funding channels should help optimise both the cost and resilience of its funding structure.
Focus on clients, employees, society and shareholders
Beyond its financial targets, Ayvens said its 2029 strategy is intended to deliver value across four stakeholder groups.
For customers, the company plans to use its scale and fleet-management expertise to simplify mobility while helping businesses manage fleet costs.
For society, it intends to support customers in lowering transport emissions.
For employees, Ayvens said it would focus on creating an environment that supports professional development and career opportunities.
For shareholders, the company said its priority would be balancing growth with higher returns and efficient use of capital.
Ayvens employs more than 13,000 people across 40 countries and manages approximately 3.1 million vehicles, including what it describes as the world’s largest multi-brand electric-vehicle fleet. The company is listed on Compartment A of Euronext Paris under ticker AYV, with Societe Generale Group as its majority shareholder.
The 2029 plan consequently represents more than a new set of financial targets for Ayvens. It is an attempt to turn the scale created by the ALD-LeasePlan combination into higher profitability and lower operating costs while preparing for an automotive market increasingly shaped by electrification, software and changing patterns of vehicle ownership.
