It’s been two years since Kmart Tyre and Auto rebranded to mycar. FAN took the opportunity during the birthday celebrations to speak to Adam Pay, MD at mycar, about their fleet business.
FAN: Does mycar target fleet customers?
Adam: We serve millions of different Australians each year and have a wide customer base. Currently, fleet customers make up a growing part of our business and since 2019, we’ve had over 4,500 fleet customers, servicing over 100,000 cars. We’re also the authorised, and in some case, the preferred supplier to major fleet management and leasing companies in Australia.
FAN: What is the size of the fleet market in Australia?
Adam: The fleet business in Australia is in an interesting position post-COVID-19 and is expected to grow after a drop in 2020. One positive to come out of the pandemic was the realisation of how important a well-maintained and efficient fleet is to businesses.
At the moment, there are roughly 460,000 fleet businesses in Australia operating about 3.9 million vehicles. Most are smaller fleets, with around 1,000 organisations operating more than 200 vehicles at any one time.
FAN: What is the trend for tyres in fleet?
Adam: The industry is facing a significant set of challenges, like any business post-COVID, but it is predicted to grow over the next few years thanks to the ongoing need to speed up e-commerce delivery times and deliver services directly to customers.
Trends like the growth in telematics and tracking and general process automation are reducing operational costs for fleet managers and owners, meaning they’re able to operate more vehicles at greater capacity, allowing fleet companies to maximise their vehicle utilisation.
Sustainability will also impact the fleet industry. The CSIRO predicts car fleets could be fully electric by 2050, with the share of EVs in new car sales reaching more than 70 percent as early as 2030.
FAN: Has the average age / style / type / usage / of fleet vehicles changed in the last decade?
Adam: Definitely, particularly the type of fleet vehicles and the technology within them. In Australia, for example, large companies are focusing on the automation of fleet management functions. Electronic monitoring and GPS tracking have transformed vehicle management over the past 15 years. Alongside the emergence of hybrid and electric fleets, there’s been a lot of modernisation.
Another major impact on fleet customers was the closing down of local car manufacturing in Australia. Ten years ago, the most common fleet vehicle would likely have been a Ford Falcon or a Holden Commodore. That’s changed significantly, with local customers now selecting overseas alternatives.
FAN: What policies do fleets use for tyre replacements? (Preferred brands, OE replacement, budget/value to reduce cost)
Adam: Every business varies but overall, fleets are seeking a strong value proposition of cost and quality. We are proud to provide this to our fleet customers as our purpose is always to show how we put people first. We have a very broad selection of tyres and brands across our 269 national store network, and our team pride themselves on knowing the details of every product.
FAN: Does mycar have a mobile service? Do fleets prefer mobile or a visit to a store?
Adam: mycar has mobile tyre fitting business which provide auto options for both private and fleet customers, operating in Sydney, Melbourne and Brisbane. We continue to invest and expand the mobile business, because at mycar we always put the needs of people first, and our mobile tyre vans allow us to be wherever our customers need us to be.
We offer bespoke solutions to each of our fleet customers, as our purpose is always to demonstrate how we put people first. Mobile fleet services are definitely becoming more popular with fleet and retail customers.
FAN: What are the top tyre sizes for fleet vehicles?
Adam: This tends to vary based on the vehicle type and the location of use. Most commonly, fleets are using small to medium vehicles in metro and semi-metro areas, so the most common tyres are those which fit the needs of these vehicles and provide a strong cost, quality and overall value equation.
We stock a broad variety of brands at various price points and our knowledgeable technicians are always available to recommend the right tyre for the car and the driver’s needs. In addition, we want to give our customers peace of mind, which is where our Total Car Plan becomes important for all our fleet customers.
FAN: Do fleets allow all-terrain tyres to be fitted to 4X4 their vehicles?
Adam: We find policies around tyre allowances tend to change from company to company, based more on the industry the business is in, rather than a blanket regulation.
