12th December 2019

BVRLA Outlook into 2020

BVRLA Industry Outlook 2020

Delegates who attended this year’s Industry Outlook Conference, hosted by the BVRLA last week, came away at the end of the day having gained some real strategic insight on the future challenges facing the fleet industry.

Alongside a diverse line-up of expert speakers who shared their insightful presentations during the one-day event, the BVRLA also unveiled their new “Outlook into 2020” Report and updated delegates on how the BVRLA will be addressing the issues highlighted in the report, on behalf of its members.

For those of you who were unable to attend this year’s comprehensive event, below is a summary of the key points taken from the day.

Predictions for the year ahead

Participants overwhelmingly agreed that although the fleet sector is to undergo a major rewiring over the next year, there is widespread confidence that the sector is ready to seize the exciting opportunities which will emerge.

The Outlook into 2020 Report provides a collective industry view on the following nine key areas  which members will need to focus on during the exciting year ahead:

The leasing sector is set to grow over the next year or two, but the jury is out on whether any of this growth will come from the company car market.

KEY TRENDS

  • The transition to electric vehicles will lure grey fleet drivers into low mileage perk company cars
  • Increased certainty on Benefit in Kind (BiK) tax will halt the decline of company car numbers
  • The company car will continue to lose its supremacy within business travel strategies

The word fleet suggests a singular mass but today’s complex business environment demands a more sophisticated approach than a “one-size-fits-all”.

KEY TRENDS

  • Technology and data are levelling the playing field between small and large fleet providers
  • Fleet consultants are an increasingly precious commodity
  • Multiple touchpoints mean loyal customers

A digital revolution is happening with leasing and rental companies and the rate of change is accelerating.

KEY TRENDS

  • The tussle over access to vehicle data will hold-back innovation in the fleet sector
  • Sophisticated apps will automate more of the rental process, reducing the gap between car rental and car clubs
  • Key administrative processes are being robotised, freeing up resource for more customer-facing roles.

The fleet industry is about to undergo the most transformational period in its history, as electric vehicles change the way business travel is undertaken.  Unfortunately, there is a growing gap between the vision and the reality.

KEY TRENDS

  • The next Government will be under pressure to accelerate the decarbonisation of road transport by confirming long-term ev incentives
  • 2020 will see the launch of ‘turnkey’ products that combine the cost of the vehicle, charging infrastructure and fuel
  • By the end of 2020, pure EVs will be responsible for 20% of new company car registrations

There is a future for diesel, if politics don’t get in the way.  Newer, cleaner diesel powertrains provide a low-emission solution for logistics and long distances, but there is a lot of education to do, and confusion to be cleared up.

KEY TRENDS

  • RDE2 cars qualify for removal of the 4% BiK diesel surcharge
  • Diesel’s share of the BVRLA lease car fleet will fall below 50% in 2020
  • Average new car CO2 emissions will rise for the fourth year running in 2020

 

2020 is set to be a big year for corporate car sharing and mobility as a service (MaaS).  A growing range of off-the-shelf technology providers are now offering affordable end-to-end platforms that are reducing the barriers to entry for fleets of all sizes, from 20 to 20,000 vehicles.

KEY TRENDS

  • By the end of 2020, most OEMs will have a car subscription service
  • The number of unmanned mobility-as-a-service hubs in busy public spaces will grow this year
  • The concept of mobility credits will take-off as local authorities and employers look to encourage people out of their privately owned cars.

As 2019 draws to a close, there are worrying signs that fleets could soon be facing an increasingly patchwork and chaotic range of clean air zone restrictions, charges and timelines.

KEY TRENDS

  • Birmingham and Leeds will announce further delays to their Clean Air Zones
  • Other cities will follow Bristol in looking to introduce diesel bans
  • A number of cities will announce plans to introduce workplace parking levies

 

Compliance teams are expanding in the face of a growing regulatory burden.  Far from seeing it as a red tape nightmare, most firms are embracing the focus on developing more robust standards and processes.

KEY TRENDS

  • Complaint levels will continue to rise as professional claims management companies target the rental and leasing sector
  • The Government will push ahead with its plans to modernise consumer protection regulations
  • The FCS will be keeping a close eye on the personal contract hire sector

Showrooms and websites are competing hard to sell you the latest connected, autonomous, shared and electric vehicles.  But is the aftermarket ready?  There will be two main issues in the SMR sector next year.  One is the immediate issue of repair capacity and the other is managing increasingly complex vehicles.

KEY TRENDS

  • Electrical and software faults will drive a surge in vehicle safety recalls
  • The choice of aftermarket repair outlet will increasingly be driven by service level and not cost
  • Managing vehicle downtime will drive demand for predictive maintenance solutions
  • The potential for reduced servicing for electric vehicles will potentially result in a lower cost to businesses, but on the ‘flip side’ this could mean reduced revenue for garages

 

 

Whilst the series of panel sessions and keynote presentations held throughout the day were designed to explore the major threats and opportunities for the fleet sector in the coming 12 months, the common theme of the entire day was focused around managing the unprecedented change which is happening in the industry.

The keynote speech by Nick Jankel, Founder of Switch On also focused on this theme by highlighting the need for industry members to evolve and embrace change in order to fully leverage the opportunities arising from the increasing volumes and the speed of change.

“Our sector is in for a bumpy ride in 2020, but it has both hands on the wheel,” said BVRLA chief executive, Gerry Keaney.