Vehicle supply issues may finally be abating but fleets are now facing a lack of parts and increasing SMR (service maintenance and repair) costs and delays, according to new BVRLA data.

More fleet orders are now being fulfilled, but a decline in parts availability is leading to SMR prices and off-road times increasing

Its half-year Industry Outlook Survey reveals that more fleet orders are now being fulfilled, thanks to the steady improvement to vehicle supply levels. This in turn is helping to meet the growing demand being reported by many BVRLA members. A total 59% of respondents saw better sales transactions in Q1 2023 vs Q1 2022, providing a feeling of cautious optimism in the face of the ongoing cost of living crisis.

But such respite is being countered by an “array of aftermarket aggravation”. A decline in parts availability – cited by 90% of respondents – is leading to SMR prices and off-road times increasing. Some 92% of respondents reported an increase in vehicle downtime, compounded by an upsurge in labour costs (reported by 94% of respondents) and an aging fleet requiring more maintenance.

“For the fleet and mobility services sector, there really is no such thing as ‘business as usual’ anymore,” said BVRLA chief executive Gerry Keaney.

“Hampered by Brexit, Covid, cost-inflation and carbon reduction targets, the global automotive supply chain continues to lurch from one crisis to another, with BVRLA members bearing the brunt.”

However, the new BVRLA report also indicates general industry optimism and remarkable resilience.

“Green shoots are appearing with vehicle supply and most of our members are seeing growing sales. We are not out of the woods, but we have every reason to believe that businesses in our sector are on the right path,” continued Keaney.

The report also shows fewer members are reporting that vehicle supply is an ‘extreme barrier’ to business when compared to August 2022 – particularly for cars where lead times of 10 months or more are no longer the norm, with deliveries improving on electric, hybrid and ICE vehicles.

The picture for vans has also improved, although more than half of orders are still taking over 10 months to reach their destination. More than half (54%) of ICE vans are being delivered 10+ months after initial order, down from 68% in August 2022, with a similar situation for electric vans (51% 10+ months vs 61% in August 2022).