As the fleet industry navigates 2025, Fleet Managers face a landscape shaped by shifting market dynamics, technological advancements, and the ongoing transition to electric vehicles (EVs). Fleet News Group reached out to industry leaders to gain insights into the key trends that will define fleet operations this year.
From stabilised vehicle supply and AI-driven decision-making to evolving safety technologies and the slow but steady rise of EVs, 2025 presents both opportunities and challenges. This article explores the three critical themes shaping fleet management this year: general industry trends, the role of technology, and the future of EV adoption.
Key Trends Defining Fleet Management in 2025
After years of supply chain volatility, 2024 saw a return to more predictable vehicle availability, but that doesn’t mean Fleet Managers can relax. Instead, 2025 will require a sharper focus on optimisation, sustainability, and cost control.
Vehicle Supply and Pricing Adjustments
With supply constraints easing, fleet purchasing decisions are shifting. Chris Noone, CEO at Carly, observed:
“Supply is normalising, and BEVs are faltering, prompting OEMs and dealers to drop their pants on oversupply of some models.”
This shift has led to price corrections and heightened competition, particularly from Chinese OEMs. Mike Costello, Corporate Affairs Manager at Cox Automotive, highlighted the impact:
“Chinese brands accounted for over 140,000 sales in 2024, securing a 12% market share. In 2025, this figure could approach 20%.”
For Fleet Managers, this means greater access to cost-effective vehicles but also potential residual value risks.
Data and AI Take Centre Stage
Fleet Managers are no longer just vehicle custodians; they are data-driven decision-makers. Rohan Martin, CEO at NALSPA, pointed out:
“2024 was about discussing what AI is and does, but in 2025, the conversation will shift to how it improves decision-making.”
This trend is evident in predictive maintenance, route optimisation, and financial forecasting. As AI tools evolve, Fleet Managers who embrace data-driven insights will have a significant advantage in cost savings and operational efficiency.
Sustainability Pressures and Compliance
Environmental impact is under increased scrutiny, with carbon reporting laws and the New Vehicle Efficiency Standard influencing purchasing decisions. Andy Mulcaster, Chief Commercial Officer at SG Fleet, noted:
“Sustainability and the management of environmental impacts are increasingly on the agenda for our customers, and fleets are now seen as a potential positive swing factor in that regard.”
Even for fleets not fully transitioning to EVs, reducing emissions and ensuring compliance with environmental regulations will be a priority in 2025.
Technology’s Expanding Role in Fleet Management
Technology is at the heart of fleet optimisation, driver safety, and compliance. Industry leaders agree that data, automation, and telematics will be critical tools for Fleet Managers this year.
Advancements in Safety Technology
Evolving ANCAP safety standards are shaping vehicle procurement, with features like autonomous emergency braking (AEB), lane-keeping assist, and driver monitoring becoming standard. Giles Belcher, Chief Commercial Officer at MG Motor Australia, emphasised:
“Features like AEB, lane-keeping assistance, and intelligent speed adaptation are reducing human error and enhancing road safety.”
Telematics and Predictive Maintenance
Telematics has been a fleet staple for over a decade, but many businesses still struggle to extract meaningful value from the data. Rohan Martin warned:
“While the technology is broadbrush, it is only beneficial when you have a specific problem you are trying to solve. Otherwise, fleets can find themselves swamped in data, increased cost, and no tangible benefit.”
To avoid data overload, Fleet Managers must focus on actionable insights, such as predictive maintenance alerts, driver behaviour tracking, and vehicle utilisation patterns.
Fleet Managers’ Evolving Role
Technology is reshaping the role of Fleet Managers, requiring them to act as strategic advisors rather than just operational managers. Tania Pietsch, National Manager at Smartfleet, explained:
“Fleet Managers are now leveraging centralised software and real-time analytics to make evidence-based decisions.”
Those who embrace digital transformation will be better equipped to manage costs, enhance safety, and drive sustainability efforts in 2025.
The EV Transition: What’s Next for Fleets?
Despite increasing interest in electric vehicles, most fleets are approaching EV adoption cautiously in 2025.
Regulatory Impact on EV Adoption
Government policies are encouraging EV uptake, but mass fleet transitions remain a few years away. Chris Forbes, General Manager Fleet at Kia Australia, observed:
“Mass transition is still a couple of years away, as most customers are working through their individual charging requirements.”
New carbon reporting laws and vehicle efficiency standards are pushing businesses to consider EVs, but infrastructure challenges remain a hurdle.
Hybrids as a Bridge to Full Electrification
For many fleets, hybrids offer a practical alternative before committing to full battery electric vehicles (BEVs). Rohan Martin explained:
“Many fleets are holding off moving to BEVs due to charging issues, but hybrids continue to gain traction.”
Similarly, Mike Costello pointed out that hybrids have strong residual values, making them a safer investment for businesses concerned about total cost of ownership (TCO).
Charging Infrastructure: The Key to Success
One of the biggest barriers to EV adoption is charging accessibility. Fleet Managers must determine the best approach to recharging fleet vehicles:
- Home Charging: The most cost-effective solution but requires employer support and reimbursement programs.
- Onsite Charging: Ideal for businesses with centralised operations but requires capital investment.
- Public Charging: Necessary for long trips but remains expensive and inconsistent.
Andy Mulcaster expects fleets to use a mix of all three but ranks them in order of importance:
“For business fleets, we are expecting to see all three solutions in use, but in order of take-up, it would probably be Home, Onsite, Public.”
Education will also be crucial in 2025. Frank Agostino at Paywise stressed that Fleet Managers must address misconceptions about grid limitations and charging feasibility.
Will 2025 Mark the Year of Mass EV Adoption?
Most industry leaders believe EV uptake will grow steadily, but not exponentially. Chris Noone at Carly put it bluntly:
“Most fleets will probably dabble in 2025, but the tipping point is still a few years away.”
Mike Costello forecasts EV market share to rise from 7.7% in 2024 to over 10% in 2025, with significant growth driven by Chinese EV manufacturers like BYD and MG.
However, for mass adoption to take off, further advancements in infrastructure, cost reductions, and policy incentives are needed.
Conclusion: Preparing for 2025 and Beyond
The fleet industry in 2025 is undergoing significant transformation. Key takeaways for Fleet Managers include:
- Fleet purchasing strategies will be driven by stabilised supply, competitive pricing, and sustainability mandates.
- AI and data analytics will play a bigger role in cost management and decision-making.
- Safety technology and evolving ANCAP standards will influence vehicle choices.
- EV adoption will grow, but most fleets will take a gradual approach, with hybrids serving as an interim solution.
- Charging infrastructure and cost management remain key barriers to full electrification.
Fleet Managers who embrace technology, prioritise data-driven insights, and proactively manage the transition to lower-emission vehicles will be well-positioned for success in 2025 and beyond.
