How companies make their fleet fit for the future

How companies make their fleet fit for the future

Anyone who observes the mobility market at the moment realises that rarely before it has been so dynamic. The Deutschlandticket, electric cars, the e-bike boom or e-scooters, which are disliked by many. A lot has happened on German streets in recent years.

Global influences, as well as geopolitical and economic developments, have caused rising energy prices and supply chain problems, which, among other things, have contributed to a fundamental change in the way people move around. Governments and cities also need to make significant and targeted reductions in greenhouse gas emissions if they are to meet their climate targets. The transport sector in particular is increasingly being targeted, as emissions in this sector have hardly decreased in the past 30 years. Free public transport, comprehensive 30 km/h zones, car-free districts or even cities are being discussed as measures.

Last but not least, some car manufacturers are themselves contributing to a change in the market with their forced reorientation towards electric mobility. But it also shows that sustainable mobility is becoming a business case.

Where is the fleet heading in the future?

Deutschlandticket, electric cars, e-bike boom and car-free cities: the mobility revolution is in full swing and companies in particular play a central role in it. After all, there is no journey people make more often than the one to work. Companies with their own vehicle fleets are therefore under massive pressure in their fleet strategy. Fleet managers have to ask themselves what they need to consider in order to make their own fleet fit for the future?

To answer this question, we took a closer look at the dynamic and complex mobility market and took a look at the requirements of a modern company fleet.

These are the 4 trends that will particularly influence fleets in 2023 and beyond:

  • Electromobility
  • Digitisation
  • Flexibility
  • Sustainability

We show how companies can react to these trends and set up their vehicle fleets for the future of company mobility.

Trend 1: Electromobility

In the future, fleet managers will increasingly have to consider alternative forms of propulsion when procuring company vehicles. This is because legal regulations at municipal and national level are increasingly making it difficult to operate fleets with combustion engines. Many cities already have diesel driving bans. In addition, there is a stronger CO2 weighting in tax assessment and, apart from the Euro 7 emissions standard planned for 2025, the recent EU decision to phase out internal combustion engines will fundamentally change operational mobility in the future: According to this, from 2035 onwards, new registrations of vehicles with combustion engines will only be permitted if the cars are emission-free. This means that company fleets will have to become increasingly electrified in the coming years.

At the same time, however, the conditions for successful electrification of fleets have improved thanks to technical progress in the e-car segment. More and more car manufacturers are offering an ever-growing range of electric models, whose ranges have also improved significantly in recent years. In addition, e-cars generally require less maintenance.

For companies, there are also more opportunities to try out new electric models for their fleet. In addition to classic vehicle leasing, car subscriptions are also gaining ground as an alternative in the fleet. The advantage of car subscriptions compared to leasing lies in the shorter and more flexible terms and the attractive all-inclusive packages offered by the providers, so that fleet managers do not have to spend a lot of time and resources on fleet management. Car subscriptions are suitable for seasonal needs because of their shorter and more flexible terms.

Trend 2: Digitalisation

Digitalisation is not only changing everyday office life and working models, but also has a strong influence on the organisation and management of vehicle fleets. Companies must increasingly rely on digital processes in fleet management in order to work more efficiently and conserve resources. Digital fleet tools offer a holistic solution to monitor the fleet, organise workshop appointments, optimise routes and record vehicle data in real time.

In addition, digitalisation enables the integration of telematics systems that monitor the condition of the vehicles and warn fleet managers when maintenance work is necessary. This not only contributes to the safety of drivers, but also reduces operating costs and increases the efficiency of the fleet.

Last but not least, companies can use a digital mobility budget platform to expand their vehicle fleet and add a comprehensive range of mobility services. In this way, the entire corporate mobility can be mapped on one platform. Accounting is not only digitalised, but also automated and tax-optimised. In addition, a mobility budget platform can be used to specifically promote sustainable mobility alternatives such as a company bicycle.

Trend 3: Flexibility

Flexible and hybrid working models as well as home office have become established in companies in recent years. Even though many companies are trying to get their employees back into the office with dedicated initiatives, new work and remote work will hold their own in the future. Because in times of a shortage of skilled workers and dwindling employee loyalty, companies need to be more responsive to the needs of employees and look for appealing ways to retain existing employees and attract new ones.

These challenges also require an adjustment of company mobility and fleet strategy. Companies should consider replacing company cars with mobility budgets to offer employees more flexibility in their choice of transport. For many employees, a company car that is not used most of the time is no longer interesting; they would much rather have flexible and sustainable mobility options that fit their current life and everyday situation.

Alternative company car options such as car subscriptions, car sharing and long-term rentals can be a useful addition. These options allow employees to choose the right vehicle according to their needs and help to optimise the overall costs of the fleet.

Trend 4: Sustainability

In the business context, the importance of ESG (Environmental, Social, Governance) is growing. Companies must increasingly commit to climate protection and develop sustainability strategies in order to fulfil their social responsibility and comply with legal requirements.

Last but not least, with the upcoming CSRD (Corporate Sustainability Reporting Directive), companies will be increasingly required to act more sustainably. They have to start recording and reporting CO2 emissions.

Introducing company bikes as an alternative to company cars not only helps reduce CO2, but also promotes employee health. With the e-bike boom, bicycles are becoming more popular with many people, and company bike leasing programmes make it easier for companies to integrate this sustainable option into their fleets.

Outlook

The future of the corporate fleet is facing major changes. Electromobility, digitalisation, flexibility and sustainability are key trends that companies should keep an eye on. By responding to these trends and adapting their fleet strategy accordingly, they can not only remain competitive, but also help reduce their environmental impact and better meet the needs of their employees. Taking the right steps today can help companies make their fleet fit for the future.

Stefan Wendering
Stefan is a freelance writer and editor at NAVIT. Previously, he worked for startups and in the mobility cosmos. He is an expert in urban and sustainable mobility, employee benefits and new work. Besides blog content, he also creates marketing materials, taglines and content for websites and case studies.