Key Trends Poised to Impact Fleets in 2020 and Beyond
While consumer demand continues to be the main driver of innovation in the automotive sector, many savvy fleet operators are closely monitoring the changes on the horizon to ensure their business is well positioned to capitalize on these emerging trends. Whether it’s enhanced vehicle connectivity, the continued shift towards SUVs and crossovers, or the rapid maturation of the electric vehicle segment, these trends are poised to fundamentally shift how businesses approach fleet management in 2020 and beyond.
Recently, ARI’s Geoff Seely spoke with Canadian Automotive Fleet to explore how new technology, shifts in consumer preferences, and changing government regulations are creating opportunities — and challenges — for fleet operators. In the article, Geoff highlights vehicle connectivity as one particular trend that continues to standout above the rest.
“There are a number of recent advances in connected vehicle technologies that have the potential to significantly benefit fleet operators. Of particular note, OEM-enabled telematics technology will provide richer data and virtually eliminate the need to interpret or re-engineer the data received from traditional third-party OBD devices. Additionally, emerging camera technology enables more video streaming to provide further context to the telematics data. Both the telematics data and camera feeds will be helpful to fleets that are looking to lower their total cost of risk and insurance premiums,” noted Geoff.
Geoff also points to the continued shift away from sedans in favor of SUVs/crossovers as an area likely to benefit many organizations cautions that it doesn’t come without some challenges.
“Another important factor to consider is that new models from OEMs typically have limited, if any, discounts, making CAP costs higher for these new SUVs/crossovers. Further amplifying this dynamic is the often high demand for these new models. Conversely, some models that are only one or two years old may have considerable discounts while still maintaining good residual value. By opting for these slightly older options you can sometimes saves thousands in acquisition costs while still providing all the safety and performance needed for your fleet,” said Geoff.
Finally, Geoff stresses the importance of remaining proactive and vigilant when it comes to changing government regulations such as the increased legalization of marijuana. “The legalization of marijuana and how it impacts fleet management, specifically driver safety, is a trend we continue to monitor closely.”
Be sure to read the entire Canadian Automotive Fleet article for additional insight on trends that will surely be top of mind for many in the industry for several years to come. You can also visit our unique interactive platform at FleetIsAnInvestment.com to explore the wide-range of challenges throughout the vehicle lifecycle and learn more about overcoming these hurdles to maximize your fleet investment.