Element Fleet Mexico presented its trends report, corresponding to the third quarter of 2023, in which it presents perspectives, data and recommendations for the electromobility and fleet management market.
The company points out in the publication that although inflation has moderated, it increased in July in most advanced economies. In that sense, more restrictions are expected due to the high interest rates carried by loans.
Element Fleet highlights that economic activity has slowed, marking a stable trend due to the aforementioned tight lending conditions.
According to the company, in preparation for 2024 fleet budgets, it will be critical to evaluate current trends in acquisition, resale, sustainability and fuel for successful expense planning.
Macroeconomic Trend Highlights
Element Fleet points to acquisition as the first aspect, noting that Model of the Year (MY) planning has begun to kick in and small cargo vans such as the Ford Transit Connect are being discontinued.
Another key is resale. The company claims that resale prices are on a declining trend, as they were before the pandemic (they are still high). As interest rates and inventories continue to rise, it will put additional pressure on prices, so a continued decline is expected.
Element Fleet’s report also references sustainability, as the electric vehicle (EV) market is growing at a rapid pace with declining prices.
Read also: Element Fleet Mexico Launches “DriveCare Connect” with Geotab Support
“Consider your current fleet and the sustainability goals you are looking to achieve in the medium and long term through execution,” the report notes. “EV transitions have been more complex than most fleets had anticipated, so beginning the transition is essential to ensure execution and fluidity toward this change,” it adds.
On the fuel front, Element Fleet contends that prices have gradually increased since early 2023 due to inventory drawdowns and supply disruptions. “OPEC production cuts will keep inventories low and prices higher,” they estimate.
“As you prepare your budget for 2024, be sure to increase and align your fuel budget on a year-over-year basis,” the report states.
They recommend reducing fuel costs by promoting environmentally friendly driving practices and implementing measures to prevent fuel fraud and misuse.
Read the full report here
Participation in Latam Mobility Mexico
Element Fleet will be one of the main participants in the “Latam Mobility: Mexico 2023”, a meeting where they will present the latest news in their fleet management and administration operations.
There will be two days on October 10 and 11, at the World Trade Center in Mexico City, where industry leaders and public sector authorities will meet.
Tickets available here
