Corporate fleets have noticed a paradox in recent years: configurations are simplifying, some equipment items are disappearing or moving to packages, but price tags are rising. For the fleet manager, this means more difficult bid comparisons, a higher risk of "hidden" TCO increases, and more pressure on order planning. In this article, we explain why automakers are changing fleet specs, what it does to costs, and what strategies work for corporate vehicle procurement.

Why the "less equipment, higher prices" trend is emerging

Simplifying trims (trims) is not just marketing. It's a combination of regulations, production constraints and new pricing.

1) EU regulations increase the mandatory "base" car

In the EU, the share of mandatory safety and emission technologies is increasing. This pushes up the price even when it does not subjectively "add comfort".

• CO2 targets (2025-2029): tighter fleet limits force manufacturers to reduce average emissions (more hybrids/BEVs, more expensive powertrains, more complex production mix).
• Mandatory safety features (GSR): the gradual introduction of systems such as intelligent speed assist, driver attention monitoring, advanced emergency braking and other features increase the hardware and software complexity of the vehicle.

Practical implications for fleet: the 'base' version may be objectively more technologically rich (sensors, assistance systems), but at the same time the manufacturer will cut some convenience items to maintain production complexity and margin.

2) Production complexity: fewer combinations = faster lines

Automakers are trying to reduce the number of combinations of engines, transmissions, packages and interiors.

Reasons:

• Reducing errors and downtime,
• better predictability of parts deliveries,
• less pressure on logistics,
• faster production planning and fleet allocations.

The result is often a consolidation of trims (e.g. a model is sold in one "fleet-friendly" trim + a couple of packages). From a purchasing point of view this is easier, but at the same time it is harder to "negotiate" a price reduction through the removal of elements.

3) Cost shocks and supply chain (chips, materials, energy)

Even after the worst supply disruptions have passed, more electronics and software remain in the car than a few years ago. Component prices are expected to be under pressure (especially semiconductors and power electronics), and this is reflected in price lists.

4) New pricing: "value-based pricing" and bundles

Increasingly, manufacturers:

• shifting elements from "higher-end" to packages,
• use pre-paid features (connectivity, navigation, sometimes advanced assistance packages),
• set prices according to the willingness to pay of the segment (fleet vs retail), not just the cost of production.

Risk: fleet may get a good contract price per vehicle, but TCO goes up through subscriptions, more expensive servicing or higher insurance value.

What realistically changes in fleet specifications (practical examples)

Fleet specifications today typically experience the following shifts:

1) Less "free configuration", more fixed packages

• Less combinations of wheels, lights, seats, infotainment,
• Limited number of colours and trims,
• Simplified "Business" and "Fleet" versions.

Advantage: faster availability and easier tender.

Disadvantage: worse price optimisation - often you pay for a package even if you only need 1-2 elements.

2) "Decontenting": minor but noticeable cuts

The most common are cuts or changes:

• Spare wheel (replaced with a repair kit),
• type of audio system, number of speakers,
• some comfort features (e.g. electric seat control, additional soundproofing),
• changes to connectivity (shorter period of free service).

3) Trims merge, entry price increases

Some brands are moving to the principle: "one trim, higher entry price, more standard". For fleet, this means that the entry price threshold (and therefore financing/insurance) goes up.

Data: why cars are more expensive (and why it's not just inflation)

In Europe, car prices are rising faster than fleet would like in the long term.

1) Price differences between segments are widening

In the B and C segments, the price gap between body styles (e.g. B Small vs B SUV, C1 Lower Medium vs C1 SUV) has widened significantly between 2018-2024. For fleet, this means that a "small shift in body style" (e.g. from hatchback to SUV) costs more today than it used to.

2) Electrification brings a higher average price tag

Hybrids and BEVs move the average up, even if they don't always deliver immediate savings in TCO at every mileage profile.

3) Slovakia: prices are rising in an environment of still noticeable inflation

When planning a fleet, it is important to work with the reality of prices in the economy (wages, service, insurance, energy). Even when inflation slows, cost increases remain significant - and are passed on in service hourly rates, spare parts and insurance premiums.

Impact on TCO: where fleets are most likely to "overpay"

Rising price tags are only part of the story. The real surprises tend to be in TCO.

1) Insurance and insured value

Higher list prices and more expensive parts (lights, radar, cameras) push insurance premiums up. Fleet specification should minimize risk items that often get damaged.

2) Service and repairs (especially bodywork and ADAS)

Camera and radar calibrations after glass or bumper replacement increase both the cost of repairs and downtime. For large fleets, downtime has a direct financial impact.

3) Service subscriptions and connectivity

Beware of features tied to subscriptions:

• Online navigation,
• remote services,
• fleet telematics from OEMs.

If the pricing model changes after 12-36 months, TCO may increase without changing the monthly vehicle payment.

4) Residual Value (RV) and aftermarket

Simpler configurations may perform better in the aftermarket (easier to sell), but "chopped" equipment may reduce attractiveness in some classes. RV risk increases if the model line is changed frequently or has many software licensed features.

How to do it: strategies for corporations and fleet managers

Below are practices that work well in practice when manufacturers limit configurations and prices rise.

1) Stop comparing just "equipment" - compare value for TCO

Define mandatory parameters by application in your tender:

• Safety and ADAS (which is a must-have),
• comfort for entry (ergonomics, lights, seats),
• service network and SLA,
• consumption/energy according to the real profile.

Tip: Create an internal "fleet standard" (1-2 packages) and don't allow minor deviations. You will save on both purchase and operation.

2) Work with allocations and lead-time as a risk

• Plan renewals earlier (especially for LCVs),
• set up interim solutions (short term rental / medium term rental),
• create a "buffer" of vehicles for season and recruitment.

3) Mix of solutions: core fleet + flexible complement

Corporations today often mix and match:

• Operational leasing for the stable part of the fleet,
• long-term leases for bridge deliveries, projects and trial periods,
• short-term leases for peaks and replacements.

Such a mix reduces the risk of being forced to buy an expensive configuration just because "there is no other".

4) "Spec lock" in the contract: lock in critical items

For a fleet program, define in your contract or addenda:

• What is the minimum accepted specification,
• which elements must not be replaced by a cheaper alternative,
• what happens if the manufacturer makes a "mid-cycle" change.

5) Optimize TCO through processes (not just price list)

The fastest savings often come from:

• CAR policy and waiver approvals,
• mileage and consumption monitoring,
• claims management (driver coaching, reporting, service selection),
• tyre optimisation and replacements.

AVIS solutions in practice typically include: vehicle mix consultation, mileage-based rental/leasing setup, service network, assistance and reporting for TCO.

Investment insight: what it means for companies and manufacturers

• For companies: higher entry prices increase capital tie-up (if you're buying) and can increase insurance premiums; with leasing, there's increasing pressure to get RV and mileage estimates right.
• For manufacturers: simplifying tooling stabilizes production and boosts margins; it also shifts some value to software and services.
• For the used car market: simpler configurations may increase liquidity (easier to sell), but weaker equipment may drive down price in a segment where customers expect comfort.

FAQ - Frequently Asked Questions (People Also Ask)

1) Why are new cars more expensive even if they have "less equipment"?

Because mandatory technologies (safety, emissions) are increasing, electronics complexity is increasing, and manufacturers are simplifying configurations for the sake of production. Comfort features are often moved to packages.

2) What is "decontenting" and how do I recognize it in a tender?

It is the removal or simplification of some equipment elements. In a tender, you will discover it by comparing the model year (MY) and the exact list of standard vs packages.

3) How does one keep TCO in check with rising prices?

Establish a fleet standard (fewer exceptions), compare bids via TCO (not just list price), track damage and downtime, and use a mix of lease + long term rental.

4) Is it worth switching to hybrids or BEVs for fleet today?

Depends on mileage profile, charging and type of operation. When used appropriately, they can reduce operating costs and emissions, but the upfront cost tends to be higher.

5) Why do automakers limit configurations especially with fleet?

Fleet requires fast availability and a uniform specification. Fewer combinations reduces manufacturing complexity and makes allocations easier.

Summary / TL;DR

• Automakers simplify fleet specifications to reduce manufacturing complexity and meet regulations.
• Prices are rising due to mandated technologies (safety, emissions), electronics, and new pricing.
• The biggest risks in TCO are insurance, ADAS repairs, service subscriptions and downtime.
• Standardization of equipment, working with allocations and mix of solutions (leasing + long term lease + short term bridge) is working.
• In tendering, compare value for TCO, not just a list of convenience features.

Keywords and entities (used in the article)

Main KW: car manufacturing, fleet specifications, TCO

Related KWs and phrases: decontenting, trim, equipment, equipment packages, list price, lead-time, allocation, operating lease, long term lease, short term lease, car policy, damage, downtime, residual value (RV), insurance premium, ADAS, connectivity, subscription, electrification, hybrid, BEV, CO2 regulation, GSR, Euro 7, homologation.

Entities: European Commission, Eurostat, ACEA, ICCT, JATO Dynamics, ZAP (Association of the Automotive Industry of the Slovak Republic), AVIS, AVIS Lease, AVIS MaxiRent.

Conclusion

If your tenders are rising in price and at the same time the equipment standard is changing, it's not "your fault" - it's the new market regime. However, it can be managed: by standardising configurations, TCO approach, lead-time risk management and product mix.

Want to compare your current fleet specs and find lower TCO options? Contact AVIS - we will set up the optimal mix (operating lease, long term lease, flexible overlay) according to your mileage and seasonality.