WHILE new car sales have dropped dramatically during the Covid-19 pandemic, fleet service, maintenance and repair (SMR) is now back up to 60% of pre-coronavirus levels, reports epyx.
The company is basing this assessment on usage of its 1link Service Network, which is used by fleets totalling four million vehicles to manage their SMR processes.
Tim Meadows, vice president and commercial director at epyx, said: “In April, soon after lockdown, the number of jobsheets raised through the platform, which essentially represents the number of separate SMR transactions, fell as low as 18% of the average pre-coronavirus levels we had seen in February.
“Now, we are seeing definite signs of momentum with a noticeable increase in numbers every day. There is a definite feeling that fleets are getting back to work on quite a widespread basis.”
Meadows said that 1link Service Network had remained relatively busy through the quietest times of the lockdown because of its use by essential worker fleets.
“Obviously, some parts of the fleet industry became completely inactive during lockdown but the platform plays an important part in supporting key workers, so we co-ordinated with our SMR providers to ensure there were sufficient outlets open to meet their needs.
“Today, those essential fleets are still in action but they are being joined by a wider range of businesses and other organisations who are at the leading edge of a more concerted return to work.”
Tim said that epyx was encountering some evidence that SMR issues were arising with vehicles as they returned to use and that fleet managers and drivers needed to take care.
“We’re hearing stories of the kinds of issues you would expect – flat tyres and flat batteries, for example – but also some more serious component failures.
“There is a risk management argument for cars and vans to be properly inspected by a technician before re-entering service if they have been parked up and unused for a while.”
New car registrations in the UK during May, dropped dramatically, down almost 90%. But as showrooms reopen sales are expected to pick up quickly to meet pent up demand.
Latest figures from the SMMT show that 20,247 cars were registered in the month, as ‘click and collect’ services, allowed from mid-month, saw some movement in the market.
However, with 163,477 fewer registrations than in the same month last year, the performance still marked the lowest May since 1952.
Private buyers accounted for the lion’s share of registrations at 63.7% of the market, equivalent to 12,900 units, while 6,638 cars went to fleets.
“As Governments across the EU have stepped in to support the automotive sector, it is important that also the UK Government consider how to best assist the UK automotive industry, which is one of the pillars of the UK economy and employs in total over 800,000 people”.
Andrew Burn, Partner and Head of Automotive at KPMG, said: “What is worthy of note is that electric vehicles and alternative fuel vehicles have faired better in these results. However, this may be due to pre COVID-19 orders being fulfilled as typically lead times for these vehicles are longer.”
