Fleet management in Peru


The fleet management sector in Peru has faced a wealth of challenges over the last few years, along with the rest of Latin America.

Peru’s attempts to catapult its transport sector into a safer and more sustainable future has certainly been a long and challenging haul.

Operational, political and infrastructure challenges, including an aging vehicle population, complex legal and environmental hurdles, fuel hikes and tax interventions have given fleet managers much to contend with. Not to mention navigating the natural landscape.

From environmental restrictions to alternative travel, tech and EV adoption, we examine the opportunities for those responsible for Peruvian fleets – and the hurdles they must overcome to get to their final fleet destination.


A challenging driving landscape

The natural environment of Peru presents a unique challenge to fleet managers, before they have even turned their attention to political and legal considerations. This geographically diverse country with its rugged terrain, steep Andes mountains, expansive deserts and swampy Amazon jungle, combined with overcrowded cities and remote towns contribute to the challenge of planning efficient urban transport and regional logistics.

Although most of the main roads in Peru are geared for safe driving conditions, the omnipresent risk for fleet drivers is the vast and varied landscape. Peru is twice the size of Texas, so getting from point A to point B means a lot of time spent behind the wheel. And a lot of expense when it comes to fuel budgets.

Weather extremes are also integral to fleet planning – landslides and storms are commonplace, which further complicates the task of seamless logistics.


Mobility options

When weather, terrain or distance becomes a barrier to driving cars, vans, trucks or lorries, alternative transportation options are limited. With very few charge points for EVs, only a few train lines and often unreliable air travel, fleet managers are left with limited multi-vehicle solutions at their disposal.

So, what are the alternative options for city travel?

Driving in the main cities including Lima and Arequipa can be hazardous. Lima is home to one third of Peru’s entire population, which means that streets are constantly congested. The two main alternative options for getting personnel around congested cities are taxis or combis. These micro-buses are inexpensive but crowded and tend to be a risky ride.

Taxis in Peru aren’t the most reliable. Private taxis are the safest and most reliable option as public taxis aren’t regulated and don’t use a meter. In Lima, businesses can also use Uber and other ride-hailing apps, or the subway metro system, in their mobility mix if needing to travel from the south of the city to the north.


Government backing to go green

Peru’s progress in decarbonising transport to tackle climate change has been relatively slow. President Pedro Castillo’s government, which invested heavily in oil and gas extraction, has left Dina Boluarte with a mountain to climb to achieve net-zero emission targets by 2050. This legacy has served to thwart the green ambitions of fleet managers.

The share of renewable energy in Peru is continuing to increase and in the first half of 2023 EV sales were 68.4% higher than in the same period of 2022, according to the Automotive Association of Peru.

But, in context, in neighbouring Columbia, almost 10 times more electric vehicles were sold. So, there is still a long way to go in Peru’s low-emission journey.

The Ministry of Transport and Communications (MTC) has been leading the implementation of the Sustainable Urban Transport NAMA – TRANSPerú. This plan aims to improve the quality of the urban transport system by focusing on environmental and social benefits. Initiatives vital to the sustainable transformation of Peru’s urban transport sector include a scrappage scheme, progress in air quality measurement and the implementation of a non-motorised transport programme.


Road safety

The government has committed to investing in safer and improved road networks by tackling speeding, road maintenance and lighting.

In an effort to reduce the number of accidents, it introduced new legislation last year establishing new speed limits in urban areas. The speed limit on urban roads is now 90km/h (56mph), 50km/h (31mph) on rural roads, and 100km/h (62mph) on motorways. Exceeding the speed limit entails fines equivalent to a percentage of the UIT, which is a big motivator to drive slower and safer.

Fleet managers, however, have a strong cultural issue to overcome in raising awareness of road safety and responsible driving. Shaking drivers out of their long-established driving behaviours is just the start. Much work also needs to be done to educate them about the importance of driver breaks, vehicle maintenance checks and reporting mechanical faults.


Fleet tech

Continual advancements in digital solutions, such as telematics platforms, are pushing greater numbers of Peruvian businesses to embrace technology to increase operational efficiency and transform their relationships with employees and customers alike.

Digital transformation, however, also presents a new world of challenges for fleet managers. From cyberthreats to employee trust and acceptance, the adoption of fleet management solutions is a slow burner in Peru, outside of those companies whose core business depends on it.


EV adoption

Although on an upward trajectory, Peru still has a long way to go on its electrification journey.

The limited number of charging stations is a notable huge barrier. In July 2022, there were only 19 Type 1 vehicle charging station connectors and only 13 Type 2 plugs nationwide.

The high price of EVs compared to conventional combustion engine vehicles, along with the limited range of batteries and lack of charging stations in such a large country, make introducing full EV fleets a difficult, if not an impossible, decision.

That said, there is a growing curiosity in e-mobility and a greater awareness of the importance of environmental responsibility.

Electric vehicles are being given ever greater prominence at events and more brands are looking to phase them into their portfolios. In 2023, more than 40 brands and 100 models of hybrid and electric vehicles were marketed in Peru, while savvy entrepreneurs are importing electric vehicles from China.

But, with no ICE vehicle ban is sight and no economic incentives offered, for the foreseeable, Peru will see very few green fleets on the highways or remote roads. They are currently only proving a viable option for urban distribution companies, and more specifically, for last mile deliveries.


Leasing gaining momentum

New car sales fell by an average of 20% as a result of the recent recession that hit Peru. Although sales are now slowly increasing, they are doing so at the cost of sacrificing margins.

Peru is also seeing an uptick in three and four-year lease contracts, as fleet operators attempt to stabilise rising costs, manage interest rates and contend with uncertainty over residual values. Another motivator is safeguarding against another pandemic, with Covid-19 leading to debilitating vehicle shortages and price hikes for businesses looking to upgrade or expand their fleets.

Multi-bid leasing is not common in Peru, but it expected to grow in popularity as fleet managers explore new ways to generate operational efficiencies and achieve significant bottom line savings.



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