5 Trends Shaping the Future of Commercial Automotive in 2024

Navigating Tomorrow’s Roads: 5 Trends Shaping the Future of Commercial Automotive in 2024

Dealerships who offer dedicated commercial service bays or who provide mobile service offerings enhance their value.

The commercial automotive industry stands at the crossroads of economic challenges, evolving customer needs, and a dynamic environmental landscape, setting the stage for a transformative journey in 2024. As a new year unfolds, bringing fresh goals, evolving regulations and expanded opportunities, let’s delve into five pivotal trends that promise to shape the industry’s future.

1. Dealerships Pivot Toward Commercial Customer Obsession

In a changing economy where inflation and interest rates have hit the brakes rapidly for retail buyers, dealerships are likely to pivot toward commercial customers. These customers operate on a different clock — one that ticks loudly, demanding immediate solutions. The indispensable role of commercial vehicles, generating $2,000 to $3,000 per day per vehicle for businesses, underscores the urgency for efficient solutions. These customers can’t wait for interest rates to lower or the market to settle. Their industries are resilient through economic highs and lows, meaning vocational businesses ensure a consistent demand for commercial vehicles for dealerships.

In addition to needing vehicles to support their business now, commercial customers are also grappling with the complexities of running a business today. Many businesses and industries are feeling pressure from government regulations, as well as society, to integrate electric vehicles and net-zero carbon solutions into their fleets. New technologies like telematics offer data and insights that businesses need to operate efficiently. These complexities open avenues for new dealership services, and the key lies in cultivating relationships built on trust to guide commercial customers through this changing terrain.

2. Commercial EVs Find Their Niche in Specific Use Cases

Commercial customers certainly recognize the societal benefit of a fleet that sports the label “electric” or “net-zero” compared to the negative impression of an idling gas or diesel vehicle. As the societal appeal of sustainable fleets gains traction, commercial electric vehicles (EVs) face practical limitations, particularly in vocations with diverse operational needs. A utility company in a rural area with harsh winters or unpredictable violent storms, for instance, may find EVs impractical. However, specific use cases, such as fixed-route delivery and transport buses, present ideal opportunities for electrification. These vocations with predictable and short-range routes where vehicles can return to a garage or depot that can support charging are prime for adoption. Anticipate a surge in solutions tailored to specific use cases, ensuring a balanced integration of EVs into commercial fleets.

3. Fixed Ops Takes Center Stage with Commercial Service Bays

With revenues short on the retail side, dealerships will not only look to commercial sales to keep business moving, they’ll also look to other commercial revenue opportunities. Commercial customers can’t wait weeks for a vehicle to be serviced. Dealerships who offer dedicated commercial service bays or who provide mobile service offerings enhance their value. Commercial customers offer many opportunities for dealerships, but fixed ops poses potentially the greatest potential with a staggering 85-90% of commercial customers currently servicing their fleet outside of dealerships. It’s an untapped market that dealers can employ immediately.

4. Urban Final Mile: The Fastest Growing Vocation with Electric Bikes

Giant idling box trucks present an unsightly scene, initiating a traffic nightmare and blocking streets for even small package deliveries. As cities restrict truck access, urban final mile delivery becomes a hotbed for growth, and electric bikes emerge as the ideal solution for navigating congested city streets. Expect a surge in the adoption of eBikes customized for efficient last-mile delivery in urban markets, where traditional trucks face logistical challenges.

5. AI Drives Efficiency in Commercial Sales Processes

The commercial sales landscape is becoming more intricate, with an array of products ranging from vehicles to software, charging solutions and services. In response, 2024 is poised to unveil a new era of AI-powered solutions, revolutionizing customer prospecting and relationship management. This shift will empower dealerships to navigate the complexities of commercial sales efficiently, allowing them to offer a more tailored and technology-driven approach to their B2B customers.

In the fast-paced realm of commercial automotive, 2024 promises to be a year of adaptation, innovation and customer-centric evolution. Dealerships embracing these trends will position themselves at the forefront, steering the industry toward a future where commercial vehicles not only meet business needs but also align seamlessly with the changing dynamics of our world.

You May Also Like

How End-of-Year-Sales May Impact Auto Finance Digital Transformation Strategies

We still have a very paper-driven culture but we need to continue to shift focus to digitization to reduce risk and liability.

Following a challenging sales environment in 2022, a noticeable recovery in the automotive sector has stabilized in 2023. This year, even as supply chain problems subsided, new challenges emerged, such as the persistent risk of a potential recession, stubbornly high inflation, increased delinquencies and a UAW strike, which may impact production and, ultimately, prices.

The ROI of Giving Back

The key place to begin for any type of giving-back initiative is to determine what drives you and inspires you.

5 Technologies That Have Transformed Automotive Transportation

Recent advances in transportation offer efficiencies for drivers and carriers and provide peace of mind for customers. These improvements often offer cost improvements, as well as reduce liability for the carrier.

car carrier Ship.Cars
Skip the Stip: Lending Without Stipulations

New AI-powered technologies are creating more access to credit opportunities without the need for these stipulations and lengthy supporting documents.

EV Credits — Are They Worth It?

The industry brings with it environmental benefits, economic opportunities and infrastructure development, but are EV credits the way to go?

Other Posts

LG Electronics to Launch EV Charging Stations in the US

To support growing EV adoption across the U.S., LG is introducing Level 2 and Level 3 chargers to the market next year.

LG Electronics to launch EV charging stations in the US
CSE, NADA Introduce Training for Enhancing Dealership EV Sales Experience

The ElectrifIQ training program is aimed at training auto sales staff to better educate their customers and address their questions. 

ASE Education Foundation, CDK Global Partner for EV Safety Panel at NADA

The session, titled “EVs: The Future of the Service Bay,” will focus on EV safety training that all auto retailer employees will need for business growth.

Bullet EV Predicts EV Charging Trends that Will Impact Automotive and Fleet in 2024

Despite a short-term slowdown in EV sales, Bullet predicts the EV’s superior technology will win in the long run.

EV chargers, electric vehicles