I WISH TO BE CONTACTED
I WISH TO BE CONTACTED

* Mandatory fields

Email field is invalid

  • Login
  • Demo
  • Contact us
    • Features
    • Fleet Activities
    • Customize your solution
    • Company
  • Company
    • Company
    • Frotcom worldwide
    • About us
    • Become a partner
    • Careers
    • Blog
    • Become a partner
    • Careers
    • Frotcom worldwide
    • Knowledge Center
    • Help Center
English
Menu Menu
  • Login
English
search
    • Blog
    • Become a partner
    • Careers
    • Frotcom worldwide
    • Knowledge Center
    • Help Center
Frotcom Intelligent Fleets Frotcom Intelligent Fleets
Contact us
Try demo
    • Features
    • Fleet Activities
    • Customize your solution
    • Company
    • Vehicle tracking and sensor monitoring
    • Driving behavior analysis
    • Driving times monitoring
    • Workforce management
    • Remote tachograph download
    • Access control
    • Fuel management
    • Route planning and monitoring
    • Automatic driver identification
    • Discover all features
    • How we solve each fleet activity needs
    • Savings calculator
Blog

Why have fleet maintenance costs increased?

Fri, 14/07/2023 - 07:13
News & Events

Learn about the factors contributing to the growing increase in fleet maintenance costs and how to face the challenges arising from this increase.

Why have fleet maintenance costs increased? - Frotcom

As we are sure you've noticed, maintenance costs have increased substantially. But what is contributing to these rising costs? Below, we show you five factors contributing to this increase.

Modern vehicles complexity

Increasing maintenance costs can be attributed to the growing complexity of modern vehicles, which causes average maintenance costs across the industry to rise. This complexity also causes vehicle diagnostic rates to increase, thus being necessary to increase labor hours to identify issues. For example, some fleet vehicles with complex crash avoidance technologies like forward collision warnings or automatic emergency braking are more expensive to maintain.

Unexpected maintenance happens more frequently

Due to the difficulty in finding replacement vehicles, the operation of fleet vehicles has been extended beyond the recommended replacement limits, which generates increased spending on unscheduled maintenance. In addition, repairing these high-mileage vehicles involves significant components, which also increases unexpected maintenance expenses. Unfortunately, since the number of vehicles with extended service life continues to exceed the purchase of new vehicles, this frequency of unscheduled repairs is expected to persist through 2024.

Spare parts shortage

Persisting parts shortages lead to longer repair times and increased vehicle downtime and significantly cause rising maintenance costs. As a result, fleet vehicle rental costs have skyrocketed since companies need to rent vehicles to keep employees on the road during extended downtime at repair facilities.

Inflation

Undoubtedly, inflation has contributed to the increase in fleet maintenance costs. Increases in labor rates, parts prices, and raw materials result from inflation and have contributed to increased fleet maintenance costs. These inflationary pressures in the automotive sector reflect the broader economic conditions experienced nationally. As for the future, there are no signs of significant changes soon, suggesting that the industry should expect similar circumstances to persist through 2024.

Labor rates are higher

Inflationary pressures and a shortage of qualified technicians in the automotive industry are driving up labor costs, posing significant challenges in the fleet maintenance market. Due to intense competition and higher wages offered by other companies, recruiting and retaining technicians is also challenging and will worsen as most technicians retire and new younger technicians are unlikely to come. This directly affects the companies' business since the fleet vehicles are revenue-generating assets that must stay on the road.

The rise in fleet maintenance costs has, without question, presented significant challenges for the automotive sector. By understanding the factors contributing to the increase in your fleet maintenance costs, as a fleet manager, you can optimize maintenance programs and manage expenses to ensure uninterrupted fleet vehicle operation and adapt to this rising price scenario, which appears to be around for a while.

Frotcom's intelligent fleet management system can help you reduce your maintenance costs. To know more, contact a member of our team.

Source:
Business Fleet

Post tags:
  • Frotcom
  • Intelligent fleets
  • Fleet management
  • Fleet maintenance
  • Reduce fleet maintenance costs
  • Effective fleet maintenance planning
  • Increasing fleet maintenance prices
  • Rising fleet maintenance expenses
  • Control operational costs
  • Inflation

More from the blog

Frotcom’s Cutting-Edge Solutions at the Logistics and Transports Thessaloniki Expo 2025
New Frotcom’s Plug & Play Vehicle Tracking and Maintenance Solution
Frotcom Lusitana: 15 Years Transforming Fleet Management in Portugal
Optimizing Logistics: Frotcom at The Logistics World Expo & Summit 2025
Innovation in Fleet Maintenance: Frotcom at the 18th Supply Chain Conference

Subscribe our newsletter to get the latest news

Subscribe our newsletter

From our knowledge center

White Paper
6 Steps for Migrating your fleet to Electric Vehicles - White Paper
Case Study
How Bionic Electronics Saved 15% in Operational Costs with Frotcom
Documentation
Plug & Play vehicle tracking and maintenance
Case Study
Flynn RoadFreight Improves Their Customer Service and Simplifies Tachograph Compliance with Frotcom
Case Study
MVD DOO boosts operational performance using Frotcom

Share this

Share on Facebook
Share on Twitter
Share on LinkedIn
Share by Email
Product
    • Features
    • Fleet Activities
    • Customize Your Solution
    • Solutions
    • Integrations
    • Knowledge Center
    • FAQS
    • Help Center
    • Savings Calculator
Company
    • Frotcom worldwide
    • About us
    • Become a partner
    • Careers
    • Events
    • Blog
The latest in our blog
19 May 2025
Frotcom’s Cutting-Edge Solutions at the Logistics and Transports Thessaloniki Expo 2025
15 May 2025
New Frotcom’s Plug & Play Vehicle Tracking and Maintenance Solution
12 May 2025
5 Tips to Prevent Fuel Theft with Telematics
Contact us

Email field is invalid

* Mandatory fields

Read the latest on your email
Subscribe our newsletter
Follow us
  • Facebook
  • Twitter
  • Linkedin
  • Instragram
  • Youtube
  • Pinterest
Awards & recognitions
    • Gold Microsoft Partner
    • PME Líder
    • PME Excelência
    • IT Mark
    • ISO
    • Inovadora Cotec
  • © 2025 Frotcom International
  • Terms and Conditions
  • About Cookies
  • Quality Policy
  • Privacy Policy
  • About Data Protection
Choose your language
  • Български
  • Deutsch
  • English
  • Español
  • Ελληνικά
  • Français
  • Italiano
  • Македонски
  • Nederlands
  • Português
  • Română
  • Shqip
  • Slovenščina
  • Srpski
  • Svenska