Vehicle rental and leasing will see big changes in 2020 but the industry is well placed to deal with the challenges.

BVRLA’s Industry Outlook 2020 looks at the key areas for next year and how members are taking action

That’s the finding of the BVRLA Industry Outlook 2020 report, unveiled today at the association’s Industry Outlook Conference.

According to the report, electric vehicle supply, vehicle data access, vehicle repairability, garage capacity and knee-jerk local transport policymaking are major challenges for the sector, but BVRLA members are ahead of the game, with new digital platforms, increased compliance teams, research in electrification and trials of new mobility models.

BVRLA chief executive, Gerry Keaney explained: “BVRLA members are providing more consultancy and advice and building stronger customer relationships and loyalty.

“They are ideally positioned to take advantage of some of today’s key megatrends. Finance remains cheap and society is becoming used to the idea of buying a service rather than owning an asset. At the same time, road transport has risen up the political and business agenda and expertise is in short supply.”

Nine key areas revealed in the report cover:

Company car consolidation – Reports of the company car’s death have been greatly exaggerated. But is the sector struggling on with a chronic condition, or on the rapid road to recovery?

Fleets within fleets – The word ‘fleet’ suggests an amorphous, singular mass. Taking a ‘one-size fits all’ approach creates efficiencies, but today’s complex business environment demands a more sophisticated methodology.

Delivering digital – Rental and leasing companies are embracing digitisation in all its forms. The main limit to their ambitions will be an adequate supply of vehicle data.

Elusive electric dreams – Electrification is the future, but we are not there yet. 2020 could see a wide gap between what is expected and what is deliverable.

The diesel debate – There is a future for diesel, if politics doesn’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 re-education to do, and confusion to be cleared up.

The mobility mix – While many in the automotive sector continue to dabble with a range of different mobility services and partnerships, others believe that the servitisation of existing parts of their business will provide a faster route to profit.

Clean air chaos – The fleet industry continues to highlight the need for a consistent approach when introducing measures to tackle air quality in UK towns and cities. But is anybody listening?

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

Pairing and repairing – Showrooms and websites are competing hard to sell you the latest connected, autonomous, shared and electric vehicles. But is the aftermarket ready?

To access the report, click here.