Cox Automotive Australia, the parent company of Manheim Auctions, has released a special report identifying six trends for de-fleeting and re-marketing electric vehicles.
The Future of EV Re-marketing in Fleet and Rental Operations report was compiled by Cox Automotive Australia enterprise partnerships national manager Anthony Poci.
“We hear and read about electric vehicles in the news daily,” Poci says.
“It’s crucial we understand how to prepare for the disruption this technology will impose on the automotive industry, consumers, and wider society.
“When it comes to remarketing EVs, it is clear they require new tactics and strategies, putting pressure on the industry to adjust quickly and decisively.
Poci says there are six major trends to take note of:
- Growth in EV uptake across Fleet, Government and Rental sectors.
“Right now, a large proportion of EV sales go to the private market’s early adopters. Fleet EV sales have been held back by limited availability of models, and stock constraints affecting most OEMs. As such the market for pre-owned EVs is limited,” Poci says.
2. Improved battery technology.
“Constant improvements in battery technology will lead to an increased range for more EV models. Also, the battery lifespan will increase as the global automotive industry focuses on more sustainable mobility solutions.
3. Expansion of charging infrastructure.
“The expansion of available charging infrastructure is a key pillar in ensuring the continued growth of EV uptake. All up there are about 2400 public chargers available right now, according to Federal Government figures, but there’s need for a great deal more.
4. Increased focus on sustainability, emissions reduction and new policies for commercial vehicles.
“Trucks contribute around 4% of Australia’s carbon emissions, so we can expect new policies and actions imposed on light commercial vehicles and medium and heavy duty trucks as they tend to have a higher impact on energy use.
5. Increased competition.
“As the EV market grows in Australia – they’ve tripled to the end of April 2023 an achieved 6.8% share more choice will emerge. This will be sped up should Fuel Efficiency Standards achieve their aim of encouraging more imports.
6. Establishment of a second-hand EV marketplace.
“As early adopters see their first residual returns, a second-hand marketplace will quickly grow. Emerging second-hand EV marketplaces, coupled with advancements in battery health technology, mean that a larger range of quality EVs will come within reach of more consumers. While this change to the supply/demand equation suggests EV resale values may decrease, this outcome should be softened so long as demand continues to outstrip supply,” Poci says.
“Cox Automotive Mobility, part of Cox Automotive, our US-based parent company, is leading the way in battery health score and vehicle diagnostics with a commitment to support the global transition to battery power and electrification to help lower emissions. Its focus on the entire battery lifecycle will help keep batteries out of our oceans and landfills to help ensure a more sustainable future.
“At Cox Automotive Australia and New Zealand, we are committed to bringing more information and learnings from our parent company to give you timely insights to help you better manage all the demands of battery servicing across its lifecycle,” he says.
More details available here.
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