Cox Automotive Says Market Conditions Are Ideal for Fleets
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NEW ORLEANS — The commercial vehicle market is expected to grow thanks to a supportive U.S. economy as electrification and other technologies advance toward greater adoption within the heavy-duty market, according to 2024 trend research conducted by Cox Automotive.
The group’s findings were discussed at the 2024 Technology & Maintenance Council Annual Meeting and Transportation Technology Exhibition on March 3.
Zo Rahim, the senior manager of market and customer research for Cox Automotive, noted that the firm spoke with fleet operators while conducting research to understand where opportunities for growth are available. “We can learn from them that many things are focusing on service and maintenance, as well as improving operational efficiency because of the economy,” Rahim said.
He added that with 3% gross domestic product growth in the U.S. economy last year and more growth expected in 2024, fleet operators may see labor market stability and easing inflation as conditions favorable for business investment.
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Rahim also noted that Cox data indicate commercial vehicle miles traveled should increase year-over-year as medium- to heavy-duty fleet managers focus more on operational efficiencies and vehicle use management.
A concern for them, however, is finding people to keep those trucks running. Rahim said a persistent shortage of technicians and the “subsequent level of service that is lost” in repair shops is “something that will continue this year, even though there will be more demand for service and maintenance.” Also, he said fleet operators are expected to turn increasingly to technology as they realize more benefits from telematics systems, such as access to data and key vehicle performance metrics.
Rahim said the study indicated that fleets are beginning to realize the place electric vehicles will occupy in the future, with one-third of fleets indicating they would consider buying an EV during their next acquisition cycle. However, he stressed that as the industry moves toward EVs and other alternative fuels, growth will be influenced by incentives and regulations.
“It’s tough to forecast what’s going to happen state by state,” Rahim said. “I think regulation uncertainty will impact [trends].”
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