OEMs (Original Equipment Manufacturers) are no longer just builders of cars but are increasingly becoming mobility providers. Beyond manufacturing, OEMs now operate courtesy-vehicle programmes, subscription models, EV test-drive fleets and other mobility services as part of a broader service ecosystem. This shift turns idle inventory into an active component of a connected mobility network.
There is a compelling business case for OEMs to embrace this role:
Monetise idle vehicles: Cars parked at service centres or dealer lots are underutilised assets that still depreciate. Matching fleet size to real demand has been shown to enable companies to reduce fleet size by 15 to 30 per cent while maintaining service levels.
Enhance customer experience: Digital-first loaner and test-drive journeys help OEMs deepen loyalty and differentiate on service, not just product.
Maintain control: By owning and managing these fleets directly, OEMs retain data, enforce brand standards and scale strategically, instead of relying on third parties.
With the right mobility-management software, OEMs can convert their courtesy or loaner fleet from a cost liability into a strategic revenue generator supported by recurring services.
Key Challenges for OEMs in Courtesy / Mobility Fleet Management
Here are the top challenges OEMs are facing with their courtesy or mobility fleets and why they matter:
a. Scaling Different Mobility Models
OEMs operate diverse programmes such as test drives, loaners, subscriptions, rentals and EV fleets. Managing these separately creates inefficiencies, complicates pricing, availability and billing coordination and risks system fragmentation without a unified customer view.
b. Limited Visibility Across Dealer Network
Dealers often manage fleets in silos across geographies. OEMs need central dashboards to monitor usage, vehicle health and costs while allowing local autonomy. Lack of visibility causes over or under-provisioning, hurting ROI.
c. High Administrative Overhead
Manual or semi-manual booking, driver checks, handovers, billing and contracts increase errors and slow customer service, impacting brand consistency and customer experience.
d. Compliance, Risk and Liability
Courtesy vehicles carry risks of damage and misuse. OEMs must verify driver credentials, capture vehicle condition and manage liability with robust, auditable digital processes to reduce financial and reputational exposure.
e. Asset Value Management and Lifecycle Optimisation
Deciding when to assign vehicles to test drives, courtesy use, subscriptions, or resale is critical. Poor lifecycle management leads to higher mileage and reduced resale value. Data-driven planning preserves residual values and fleet reliability.
f. Sustainability and Electrification
EV courtesy fleets add complexity, such as battery health monitoring and smart charging. Real-time EV management can reduce downtime, cut energy costs and extend battery life by 20 to 30%, improving sustainability and ROI. Without smart systems, managing EV fleets at scale becomes costly amid growing regulatory and ESG demands.
How Technology Solves These Challenges
A smart mobility platform that combines software, telematics and analytics can help OEMs address these problems in a unified way. Here are some of the ways technology can help:
Centralised Fleet Management Dashboard:
Provides real-time visibility across dealer and service location fleets, showing vehicle status, usage and maintenance needs. Analytics help optimise fleet size and allocation and helps with addressing administrative overload and improving visibility across dealer networks.
Flexible Booking and Pricing Models:
Supports multiple business models (test drives, rentals, subscriptions) in one system with dynamic pricing, digital booking, payment and contracts, avoiding system fragmentation. This helps with clarity to approach different scaling models in future as well.
Driver Verification and Risk Management:
Simplifies licence and insurance checks via digital identity verification. Mobile apps and telematics automate vehicle condition reporting, reducing liability and ensuring consistent risk management. Remote immobilisation enhances security.
EV-Specific Management:
Smart charging schedules minimise downtime and energy costs. Battery health analytics extend battery life by 20-30%, reducing premature replacements and improving fleet profitability.
Lifecycle and Value Optimisation:
Fleet analytics guide when to shift vehicles from courtesy/test-drive use to subscriptions or resale, maximising residual value while maintaining service quality.
Automation and Workflows:
Automated handover processes, digital contracts and checklists simplify dealer operations. Self-service portals enable local booking and inventory management under OEM policies. Embedded reporting aids regulatory compliance and audits.
Future Outlook (2025 and Beyond)
As we move beyond 2025, Mobility-as-a-Service will become a core part of the automotive landscape, with OEMs earning a larger share of profits from digital and service-based offerings rather than one-time vehicle sales. Data will sit at the centre of this shift, powering predictive maintenance, improved insurance models and new partnership opportunities. The rise of circular mobility will further accelerate change as OEMs optimise vehicle lifecycles and EV battery performance to maximise sustainability and long-term value.
At the same time, OEMs will increasingly adopt specialised mobility platforms to manage diverse fleet models more efficiently, replacing the need for complex in-house systems. This technology-driven approach will streamline operations, support scalable growth and deliver consistent performance across markets. As regulatory and ESG expectations increase, automated compliance reporting and unified audit trails will become standard, helping OEMs operate with greater transparency and accountability.
Conclusion
Courtesy fleets are no longer just customer-service tools; they can become high-value mobility assets. With the right technology, OEMs can improve utilisation, reduce costs, enhance customer experiences and unlock new revenue streams.
Coastr provides the mobility platform OEMs need to unify operations, automate workflows and maximise ROI across their courtesy, subscription and test-drive fleets.
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