Fleet trends - 2024 Q3 Report insights
September 23, 2024
Harness fleet management trends that give you a competitive edge
Master the trends that influence the fleet industry to help inform your business decisions today. Recognize how new regulations, weather, and political factors affect fuel prices. As fleets acquire new vehicles, understand how fleet maintenance benefits from increased efficiencies. In the realm of sustainability, Electric Vehicles (EVs) are progressing steadily, while hybrids vehicles are gaining significant attention.
By using these strategic fleet insights, confidently navigate the ever-evolving mobility landscape and ensure your business stays ahead.
Discover the impact on your fleet in these 3 key areas
- Fuel
- Maintenance
- Sustainability
Element's 2024 Trends Q3 Fleet Report
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2024 Q3 Key fuel trends for fleet management
Government regulations are pushing for better fuel efficiency and lower carbon emissions to reduce environmental impact. Meanwhile, fuel prices continue to be highly volatile due to adverse weather events and ongoing geopolitical tensions.
New fuel economy standard forecasts billions in fuel savings
Corporate Average Fuel Economy (CAFE) standards are set to change starting in model year 2027.1
- The aim is to increase fuel efficiency targets for vehicles, to encourage manufacturers to produce more energy-efficient cars.
- The changes are expected to drive advancements in automotive technology, potentially leading to a shift towards electric and hybrid vehicles to meet the new regulations.
- Will likely have a profound impact on the automotive industry, prompting innovation and EV adaptation to achieve compliance with the heightened efficiency goals.
Diesel prices trend down in the summer, set to rise in second half of the year
U.S.
Diesel prices had increased at the start of summer by trended down by the end and are expected to rise by the second half of the year.
The U.S. Energy Information Administration (U.S. EIA) projects Brent crude oil prices will average $89 per barrel in the second half of the year, up from $84 in the first half.2
Canada
A similar trend is noted with diesel prices experiencing a dip, despite rising gas prices.
Mexico
Fuel prices have shown an upward trend in 2024, according to the Energy Regulatory Commission data.
Increases in average prices from 2023 to the first half of 2024 include 5% for regular gasoline, 2% for premium gasoline, and 4% for diesel.
The Ministry of Finance and Public Credit has provided tax incentives or discounts on IEPS rates to mitigate price increases when oil prices rise.
When oil prices are stable, IEPS rates are fully collected to enhance tax revenue.3
Weather events threaten gas production
Many storms, including Hurricane Beryl and Canada’s wildfires could affect gas prices.4
Recommendation: Fuel cost reduction
Use route optimization and our Supplier Locator for Fuel in our Xcelerate for Drivers’ app to locate the closest and most cost-efficient gas stations.
2024 Q3 Key trends in fleet maintenance
Fleet vehicle maintenance costs are stabilizing, revealing a positive trend in fleet management. Investment in newer vehicles is beginning to help reduce costs and improve performance by phasing out older models.
Maintenance costs level off
Learn how to implement strategies to boost driver productivity and control vehicle maintenance costs.
Newer fleet vehicles
North American fleets have begun updating to new vehicles, cutting maintenance costs and downtime.
Fall and winter fleet preparation
Warn fleet drivers of the potential driving hazards of fallen leaves in autumn.
Recommendation: Reduce auto repair and maintenance costs
Use our Xcelerate for Drivers app to access in-network and national accounts suppliers.
2024 Q3 Key sustainability trends
Even with increased incentives, Electric Vehicles (EVs) are growing slowly, while Hybrid Electric Vehicles (HEVs) are gaining traction as an alternative for those looking to lower fuel consumption and their carbon footprint. This trend continues as expanding charging infrastructure remains a significant challenge.
Shifting demand from EVs to hybrid vehicles
Hybrids are gaining popularity for their low emissions and reliable performance.
Charging Infrastructure and availability
Public charging infrastructure isn't expanding fast enough to meet the rising electric vehicle numbers.
EV Incentives amidst price stabilization
Strong incentives and price cuts are boosting electric vehicle appeal despite slower sales growth.
Recommendation: Fleet decarbonization
Assess your fleet to find out if a transition to electric or hybrid vehicles is right for your organization.
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