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Daily rental firms keen on ‘ready-to-retail’

 960 640 Stuart O'Brien
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Daily rental companies are looking to ensure that the cars and vans they remarketed are in ready-to-retail condition, with the trend shifting from ensuring vehicles reach the used market from grade 2-3 condition to grade 1-2 condition in 2019.

That’s according to research by automotive e-commerce specialists epyx, with Vicky Gardner, head of remarking at the firm, stating: “There are really two convergent trends behind this. One is that the used sector today overwhelmingly prefers ready-to-retail stock but it remains in short supply, relatively speaking.
 
“What this means is that it really pays for companies such as daily rental operations to ensure that their cars and vans are presented to buyers in grade 1 or 2 condition. The premium being paid over grade 2-3 is very much worth it and they have moved to meet this demand over the last year or more.
 
“The second trend is that, thanks to technology, rental companies are much more aware of the condition of their vehicles on a day-to-day basis and are able to keep them in better shape.
 
“With handheld devices, the thoroughness of checking and recording of data every time that a vehicle is hired vastly exceeds older, largely manual processes. This means that vehicles stay in better condition throughout their life on the fleet.”
 
Vicky added that, as a result, the results being achieved by daily rental companies were much more impressive today than even just a couple of years ago.
 
“We work with a number of daily rental companies and the improved results that we have seen across the market in recent years have been very encouraging. All of them are achieving noticeably higher remarketing returns through presenting better quality stock but also through using online options very intelligently. 
 
“For example, where they have a quantity of similar stock coming off their fleet at the same time, which is sometimes an issue for rental companies, they are using online tools to distribute it across the market more effectively.”
 
A recently-introduced Damage Module by epyx helps to maintain the condition of hire vehicles for users of the 1Link Hire Network platform. 

Image by Arek Socha from Pixabay

Businesses unwilling to give up company cars for mobility solutions

 960 640 Stuart O'Brien
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Few businesses would be willing to give up their company car and use a mobility solution instead.

That’s according to research from Arval – In response to a question asking whether they would fully or in part give up their vehicle for a range of alternatives, just 7% said they would probably or certainly opt instead for car sharing, 9% for ride sharing, 8% for a mobility budget, 11% for a private lease vehicle and 7% for mid-term rental.

The finding comes from the 2019 edition of Arval Mobility Observatory, research which covers 3,930 fleets and asks a wide ranging set of questions about fleet and mobility trends.

It does show, however, that there are often differences between smaller and larger organisations when it comes to attitudes to mobility products. For example, while just 3% of businesses with fewer than 10 employees would opt for car sharing while in those with 1,000 or more employees, this grows to 14%. 

There are also signs of widespread interest in mobility solutions. Car sharing is already being used or considered for use with the next three years by 31% of respondents, ride sharing by 45%, mobility budgets by 21%, private lease by 23% and medium term rental by 22%.

The research also looks at reasons why drivers are unlikely to want to give up their company cars. They are ease of motoring (mentioned by 16% of respondents), not having to finance their own vehicle (14%), no risk of ownership (10%) and delivery of a new car every 3-4 years (8%).

Shaun Sadlier, Head of Arval Mobility Observatory in the UK, said: “There is a lot of discussion in corporate circles about mobility solutions at the moment and our research shows that interest is high. As a provider, we believe that there is considerable potential for these products.

“What is clear above all, though, is that the company car looks set to remain the core transport method for the foreseeable future. While decision makers and employees in organisations are interested in mobility solutions, it appears that the vast majority see them as supplementing or being a partial alternative to the traditional fleet.

“The reasons for this are simple, we believe. Some of them are revealed in our research by showing how much employees value having a company car and the benefits it brings. The other is that, when a typical multi-stop journey is undertaken, a car is literally the only practical option.

“A mixed provision model is one that we have been saying for some time is the most likely to develop in the majority of businesses, where a range of mobility solutions are used alongside company cars with employees using the most appropriate form of transport for each journey.

“Our belief is that, over the next few years, as more and more fleet managers become mobility managers, one of the most interesting developments will be the process that businesses undergo in learning how to use mobility options in the most effective manner.”

Image by Free-Photos from Pixabay

Diesel car sales continue to fall as electric rises

 960 640 Stuart O'Brien
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Diesel car sales in the UK fell by another 242,000 in the last year, from 930,000 to 688,000, far outweighing the 131,000 rise in petrol car sales.

That’s according to new data from accountancy UHY Hacker Young, which says the diesel emissions scandal and subsequent ‘demonization of diesel’ has now led to two consecutive years of sharply falling diesel car sales, with this year’s 26% decline matching the 26% fall in 2017/18.

Petrol sales were up by 10% in the past year.

The 688,000 diesel cars sold in the past year represent just over half the 1.27 million sold in 2015/16, prior to the diesel emissions scandal. In the wake of that scandal, several taxes and charges were introduced to discourage diesel car purchases, including increases in car tax and company car tax for diesel cars, and a £12.50 daily charge for most diesel cars to enter the London’s new ‘Ultra Low Emission Zone’.

The biggest jump in new car sales in the past year has been seen among battery electric vehicles – ‘pure’ electric vehicles that use no fossil fuels at all. This category saw sales rise 41% from 13,000 in 2017/18 to 18,500 in 2018/19.

3,200 of these battery electric cars were registered by Tesla in the past year, down 24% from 4,200 in the previous year.

The first quarter of 2019 saw the biggest-ever quarter for sales of battery electric vehicles, with 7,000 new vehicles registered. The primary driver was Nissan’s new Leaf model.

Hybrid electric models, such as the Toyota Prius, saw sales rise another 26% to 92,000 in the past year. The category now makes up 4% of all new cars sold.

Paul Daly, automotive partner at UHY Hacker Young, said: “Diesel sales have now almost halved in the two years since the emissions scandal – this has changed the landscape of new car sales completely.

“Between the negative perceptions of diesel engines among buyers, and the Government’s moves to discourage diesel through tax, it’s unlikely that diesel sales will recover in the foreseeable future.

“This is a shame, as the latest Euro 6 diesels actually make a compelling environmental case, especially for higher mileage drivers.

“Manufacturers and dealerships will have hoped that petrol sales would make up for the shortfall, but that simply hasn’t happened.

“The accelerating sales growth of battery electric vehicles is great for the small number of manufacturers who have a credible challenger in that market. However, that market is still only a tiny fraction of new car sales overall.

“The real disruptor to the market at present remains hybrids, and battery electric vehicles still have a big gap to close to change that.”

Image by Andreas Lischka from Pixabay

UK front runner in £62 billion self-driving car race

 960 640 Stuart O'Brien
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The UK is in pole position in the global race to market for connected and autonomous vehicles (CAVs), with a £62 billion boost to the UK economy by 2030 up for grabs.

That’s according to a report published today by the Society of Motor Manufacturers and Traders (SMMT) and Frost & Sullivan, which analyses the wide-ranging societal and economic benefits to be achieved by gradually increasing CAVs on our roads.

Advanced driver assistance systems (ADAS) such as Autonomous Emergency Braking and Collision Warning are already available on the majority of new cars registered in the UK.

Combined with the gradual introduction of automated vehicles from 2021, this will deliver massive safety benefits, the report claims.

Over the next decade, the technology is set to prevent 47,000 serious accidents and save 3,900 lives. At the same time, some 420,000 new jobs will be created, including in the automotive industry and other sectors such as telecoms and digital services.

Driving commuters, we’re told, will gain back the equivalent of a full working week thanks to more ‘downtime’ and smoother traffic flows during their commute.

Connected and Autonomous Vehicles: Winning the Global Race to Market identifies three critical areas that will help CAV rollout and in which the UK has a significant advantage: supportive regulation, enabling infrastructure and an attractive market.

With the world’s first insurance legislation for autonomous vehicles already in place, the most comprehensive review of road transport underway and more miles across motorways, urban and rural roads able to be driven autonomously, the reports says the UK is already ahead of global rivals in its readiness to commercialise self-driving technology.

It ranks the UK above other major automotive countries, including Germany, US, Japan and South Korea as a global destination for the mass rollout of CAVs.

To realise this potential, however, the reports says conditions must be right, and sustained support from government will be vital – particularly if we are to meet its ambition to get autonomous vehicles on to UK roads in 2021.

The report’s key recommendations for government include updating road traffic laws, improving 4G coverage across all road networks, encouraging local authorities to work with industry to implement urban mobility services and influencing future harmonisation of international regulations to ensure these new vehicles can operate seamlessly between the UK and abroad.

Crucially, however, the UK’s departure from the EU must be orderly with a deal that supports both the industry and technological collaboration, especially in data. A ‘no deal’ Brexit will result in lasting damage to the UK’s reputation as a politically stable destination for inward investment, putting the benefits identified in the report at risk.

Mike Hawes, SMMT Chief Executive, said: “A transport revolution stands before us as we move to self-driving cars and the UK is in pole position in this £62 billion race. Government and industry have already invested millions to lay the foundations, and the opportunities are dramatic – new jobs, economic growth and improvements across society. The UK’s potential is clear. We are ahead of many rival nations but to realise these benefits we must move fast.

“Brexit has undermined our global reputation for political stability and it continues to devour valuable time and investment. We need the deadlock broken with ‘no deal’ categorically ruled out and a future relationship agreed that reflects the integrated nature of our industry and delivers frictionless trade.”

Sarwant Singh, Senior Partner and Head of Mobility, Frost & Sullivan, said: “The UK already has the essential building blocks – forward thinking legislation, advanced technology infrastructure, a highly skilled labour force, and a tech savvy customer base – to spearhead CAV deployment over the next decade. However, it will require sustained and coordinated efforts by all key stakeholders, especially the government, to realise the significant annual economic benefits forecast for the UK from CAV deployment by 2030 and drive the vision of safe, convenient and accessible mobility for all.”

EV battery capacity up by 50kWh

 960 640 Stuart O'Brien
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Frost & Sullivan research reveals battery capacity has increased by more than 50kWh across all plug-in hybrid/battery electric vehicles (PHEVs/BEVs), while 150+kW batteries now come with fast-charging capabilities.

These advances in battery technologies are creating a parallel need for a battery thermal management system (BTMS) to ensure higher mile range, longer life, and superior battery performance.

While passive thermal management, such as air-cooled systems, will be the key technology for HEVs, liquid cooling and active thermal management will be popular among PHEVs and BEVs.

“The use of liquid glycol through cooling tubes and plates between modules will not only help original equipment manufacturers (OEMs) maintain battery efficiency but also allow their vehicles to achieve compliance with stringent battery standards,” said Arvind Noel Xavier Leo, Industry Analyst, Mobility. 

“In the future, OEMs will adopt active thermal management systems that centralise all thermal needs for battery, motor, power electronics, and cabin temperature.”

Frost & Sullivan’s recent analysis, ‘Global Analysis of Electric Battery Market and Battery Thermal Management System for Electric and Hybrid Vehicles, Forecast to 2025,’ provides in-depth analyses of BTMS and highlights the current and future products of manufacturers. The study covers the markets of Europe (Denmark, France, Germany, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, and the United Kingdom), China, South Korea, Japan, and North America (the United States).

“Prismatic cells are the most preferred cell structure due to their high energy density and compact packaging, and present significant opportunities for high-end passive BTMS due to their thermal instability,” noted Leo. “Most OEMs are outsourcing battery cells for EVs and hybrid electric vehicles (HEVs), and assembling the module and pack in-house. LG Chem, Panasonic, Samsung SDI, and Sanyo will be the key cell suppliers for western OEMs, whereas BYD, CATL, and CALB will be the key battery manufacturers in China and will look to adopt western OEM technology.”

More information on the analysis can be found here: https://go.frost.com/EI_PR_KCekani_MDD0_ElectricVehicle_Mar19

Professional drivers in short supply, says IRU

 960 640 Stuart O'Brien
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The European road transport sector is facing the most acute professional driver shortage in decades.

That’s the conclusion of a report by the International Road Transport Union (IRU), based on insight from stakeholders across the European transport industry and drawn from two surveys.

The data revealed a visible driver shortage of 21% in the freight transport sector and 19% in the bus and coach sector.

The problem, the report says, is accelerating, with the shortfall predicted to reach 40% in both sectors as demand grows in 2019.

The key finings include:-

  • 57% of male drivers and 63% of female drivers believe the poor image of the profession is stifling recruitment.
  • 79% of drivers believe the difficulty of attracting women to the profession is one of the top reasons for the driver shortage. This is underlined by data from the International Transport Forum, showing female drivers make up just 2% of European road transport drivers .
  • 70% of drivers aged 25-34 believe the difficulty of attracting young drivers is one of top reasons for the driver shortage.
  • Amongst drivers, 76% believe that working conditions, and 77% think long periods away from home deter many from entering the profession.
  • The industry also suffers from an ageing labour force. In Europe the majority of freight transport sector companies are employing drivers whose average age is 44 years old, while in the passenger transport sector the average age of their employed drivers is 52 years old.

Boris Blanche, IRU’s Managing Director, said: “The transport industry needs to take immediate and decisive action to tackle the driver shortage. Left unchecked, it will have serious implications for the European economy and lead to rising costs for businesses, consumers and passengers.

“But there is no shortage of opportunity in this profession. In fact, our research found that job satisfaction tends to be high, with only 20% of drivers surveyed expressing any dissatisfaction with their work.

“A global effort must be made to address negative misperceptions and improve the image of the profession. At the same time, all industry stakeholders must act to improve working conditions in the sector. The treatment of drivers should be improved, with adequate and sufficient infrastructure and facilities provided.”

Battle for vehicle tech intensifies as digital giants wade into market

 960 640 Stuart O'Brien
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Europe was the most active autotech M&A market in 2018 with 39% of deal activity, ahead of North America and APAC, yet accounted for only 7% of total global M&A transaction value.

The latest research from GP Bullhound reveals M&A activity in autotech across Europe, Asia and North America has steadily increased in the last few years, reaching a record 166 transactions in 2018, up from 144 the previous year.

Though Europe is the most active market worldwide for M&A transactions, Asia Pacific and North America lead in terms of deal value – with 72% and 21%, respectively.

The total global autotech fundraising value increased by 293% to €27bn over the past five years,

Sven Raeymaekers, Partner at GP Bullhound, said: “Europe’s autotech sector has been growing from strength to strength in the last few years, and the figures in our report attest to significant innovation and investment across the continent. The next challenge for Europe’s autotech firms will be to achieve scale in order to compete with the biggest players in the industry. The difficulty so far is that European autotech companies struggle to get the same level of funding as their competitors in APAC and North America.”

The report also reveals that technology giants such as Google, Intel, Tesla and Uber are challenging established automotive firms when it comes to innovation in autonomous driving, connected cars, electric vehicles, and shared mobility solutions.

With Tesla on track to outsell both BMW and Mercedes-Benz in the US and several global automakers issuing recent profit warnings, GP Bullhound says the automotive industry is facing unprecedented disruption from emerging and established technology firms keen for a slice of the action.

Guillaume Bonneton, Partner at GP Bullhound, added: “A battle is emerging between global tech giants and the traditional automobile manufacturers. The tech giants have an advantage in terms of total resources available, but do not rule out the OEMs as they are pouring significant levels of investment into the four key sectors highlighted in our report. Combined with the existing levels of trust they have from consumers, it will be interesting to see who comes out on top.”

The report considers four key trends set to significantly reshape the automotive sector over the next ten to fifteen years: shared mobility, electrification, autonomy and connectivity.

Autonomy looks set to catch up to shared mobility as the most disruptive sector with the greatest increase in transaction value from €0.2bn in 2014, to €8bn in 2018 and an average transaction value of €70m, just below level of shared mobility on €75m which has dominated since 2014. This came as shared mobility declined from €17bn in 2017, to €8bn last year.

Looking ahead, the report identifies micro-mobility – bike, scooter and mopeds-sharing– as a fast-growth area, with deal activity in bike-scooter sharing increasing from $14m in 2015 to $3.5bn by the end of 2018.

Research throws spotlight on hi-tech car theft

 960 640 Stuart O'Brien
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New research by consumer watchdog Which? has found that four of the five best-selling car brands in the UK are susceptible to so called ‘keyless theft’.

Analysed data from roadside recovery organisation General German Automobile Club (ADAC) by Which? revealed that out of 237 keyless cars tested by ADAC for keyless attacks only three remained secure, with the Ford Focus, Nissan Qashqai, VW Golf and Ford Fiesta all at risk.

Latest models of Range Rover and Discovery, along with the 2018 Jaguar i-Pace, were resistant to keyless theft.

Thieves fool the car’s onboard keyless security by bypassing the systems with devices that allow them to access the vehicle and drive away. More than 106,000 offences of theft of a motor vehicle were reported to police in England and Wales up to March 2018, the highest figure since 2009, with keyless technology thought to be partly responsible.

In a statement, Which? said: ”Thieves have been using keyless theft for several years, but manufacturers continue to make new models that can be stolen in this way, meaning there is an ever-larger pool of vehicles for thieves to target.”

In a response to the findings, the Society of Motor Manufacturers & Traders (SMMT) said that new cars were “more secure than ever”, with manufacturers “investing billions” in sophisticated security features.

Meanwhile, the AA has released a video sharing its top 10 tips for avoiding car break-ins in light of new Home Office figures that show a 50% increase in vehicle thefts in the last five years.

In 2017, there were 280,313 recorded thefts from vehicles in England & Wales, up 13% on 2016, while 103,644 were stolen, up 19% on 2016.

Watch the AA video here:

Confusion over laws & regulation impacting EV adoption

 960 640 Stuart O'Brien
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Confusion around regulations on electric car adoption is actually preventing environmentally friendly vehicles from taking off in the UK.

According to research from YouGov Custom, only 2% of households currently own a hybrid car, with only 1% owning an electric.

Laws that will eventually ban diesel and petrol cars are slowly being introduced around the world, however the report says a lack of financial incentives and limited choice is also preventing growth within the electric/hybrid market.

41% of those polled admitted that they were “somewhat likely” to buy a hybrid car next, while only 19% said the same about purchasing an electric vehicle.

The YouGov research found that there were three main barriers preventing people form purchasing environmentally friendly automobiles: confusion surrounding financial benefits; incentives not being attractive enough; and a lack of choice.

Almost three-quarters (74%) said that the initial cost of the car discouraged them from purchasing a vehicle, along with 52% that were put off by the expense of charging the vehicle at home.

Changes to legislation back in October 2018, which scrapped grants for new plug-in hybrids and reduced discounts on electric cars also added to car owners concerns. A third (36%) of the total population say they’re less likely to consider a hybrid/electric vehicle for their next purchase and this rises to four in ten (40%) among petrol and diesel owners.

Finally, the lack of choice has done nothing to help elevate sales here in the UK. Ford currently has 13% share of the market, along with Vauxhall with 10%. However, only 4% or 1% would consider either a hybrid/electric car from either manufacturer respectively.

One car manufacturer who is embracing the hybrid/electric car market is Toyota, who already have seven models available. 7% of those polled considered the manufacturer when choosing an electric vehicle, which happens to be the same percentage of existing drivers who currently own a model by the Japanese brand.

‘Major re-think’ needed on EV infrastructure

 960 640 Stuart O'Brien
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Social divides in communities could be deepened with millions of people set to miss out on the environmental and financial benefits of electric vehicles (EVs), a new report concludes.

The Localis report – ‘Smart Cities: Fair investment for sustainable growth’ – argues that outdated energy and infrastructure policies must urgently be modernised, and local network operators freed up to invest ahead of demand, if the government is to meet its ambitious targets for ensuring all new cars sold are zero-emission by 2040.

The report calls on government to devolve certain Ofgem powers to city regions and strategic authorities, allowing them to develop their own ‘smart city’ plans and energy policies built upon their own expertise and understanding of place.

Local authorities should be able to form their own consortiums using existing knowledge of their local areas, and also be empowered to work with private energy network providers to deliver the infrastructure they need for the future, the report recommended.

The report emphasised that families across the UK are at risk of sharing the cost for necessary new energy infrastructure, but not being able to access for themselves the benefits of EVs and other ‘smart’ technologies – driving further inequality between richer and poorer parts of the country.

Jonathan Werran, chief executive at Localis, said: “Without a change in regulation, behaviour and a wholesale transfer of powers for local energy policies, we risk a tale of two cities in our major urban centres – deepening levels of inequality between the prosperous and more deprived parts of town.

“A ‘devolution revolution’ in locally-regulated energy markets has the potential to accelerate the nation’s switch to clean growth, turn UK cities into powerhouses for sustainable and inclusive prosperity and improve livelihoods in towns and cities across the UK.”

Furthermore – while private energy network providers have invested heavily in building infrastructure that is fit for purpose today – the report claims their inability to invest further unless there is proven need for it presents a major barrier to readying cities for smart technologies.

This restriction should be lifted if the UK’s energy network is to be fit for meeting future demand for smart technologies such as EVs – which will require a six-fold increase in the number of charging points by 2020 (Emu Analytics, May 2018).

The report authors also recommend that government should produce a standardised framework for how EV charging infrastructure is built and upgraded.

Localis head of data research, Joe Fyans, said: “The advancement of smart technology into households has huge potential for increasing the quality and efficiency of local public policy, but we have to make sure we have the nuts and bolts infrastructure in place to facilitate this change by securing the appropriate investment, and in a timely fashion.”

The report and its recommendations were informed by a series of roundtable events with local authorities, councillors and business groups.

George Lowder, chief executive, Transport for Edinburgh, said: “We’ll be taking note of the findings of this report here in Edinburgh, which is particularly timely as we consider city centre transformation, Low Emission Zones, future mobility and city development in 2019.

“A cleaner, smarter, Edinburgh is one that we are all striving for – including the increased use of EVs across our public transport fleets and an extended EV charging network for the city. The recommendations in the report today can help us to deliver this in a way that works for everyone.’’

Cllr Anna Richardson’s, city convener for sustainability and carbon reduction, Glasgow City Council, said: “Today’s report sets out many of the challenges and opportunities for Glasgow as we continue on our transition to a ‘smart city’.

“New technologies like EVs can play a part in decarbonising our transport system and improving our air quality – but they need to be rolled out fairly across the city, so everyone can benefit, and not exacerbate existing inequalities.

“The recommendations today can help ensure that government, and local authorities up and down the country, are able to oversee a successful shift to smarter technologies in a way that is fair, affordable and equitable.”