November 7, 2022
Fleet Demand Expected to Exceed Vehicle Availability in CY-2023
The 120th State of the Fleet Industry video produced by Automotive Fleet offers insights into the state of the fleet market as presented by AF Editor Mike Antich.
🎙Today's topics include:
- Fleet managers anticipate vehicle availability will incrementally increase in calendar-year 2023, but this will be partially offset by the fact that total end-user demand will continue to exceed vehicle availability.
- OEM fleet ordering allocation systems are limiting fleet buyers to fewer vehicles than they requested, causing unordered vehicles to be carried over to the next model year.
- Ultimately these units that have been carried over into the next model-year will need to be replaced. But eliminating this pent-up demand will take a while.
- Eventually, the industry is going to find equilibrium between vehicle production and end-user demand, but unfortunately that doesn’t look like it will happen in calendar-year 2023.
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⌚ Timestamps ⌚
0:27 Will vehicle availability incrementally increase in 2023?
1:00 OEM ordering allocation systems limit fleet buyers
1:26 Units been carried over into next MY will need to be replaced
5:20 Finding an equilibrium between vehicle production and user demand