KEY POINTS:
In an ever-tightening market, car companies are looking for a point of difference when it comes to products available for fleets.
In New Zealand, the competitors for that market fall into two distinct camps - the alternative fuel advocates and the technology boffins.
The leader in the first category has to be Korean company Hyundai. First introduced into New Zealand 18 years ago, the brand has expanded from a cheap runabout often seen being driven by Grey Power members to a leader in fleet sales.
An important factor in its prevalence is diesel, with that option available across Hyundai's whole range - from the 1.5-litre Getz hatchback to the Sonata sedan and the Tucson SUV.
"The modern diesel car is quiet and fuel-efficient," says the managing director of Hyundai Automotive NZ, Philip Eustace. "We have been working with government agencies, the fuel industry and others here in New Zealand to help assess and develop alternative fuels as blends in diesel and petrol.
"For the past two years, we have been running our entire fleet of media test vehicles on 10 per cent ethanol and 5 per cent biodiesel."
For fleet customers, Eustace finds the "Getz is a good seller but the biggest is the two-wheel-drive Tucson, a replacement to the station wagon for many fleets.
"Lion Brewery uses the Hyundai Santa Fe [SUV], while with the Sonata [sedan] there is a huge growth in the diesel model for companies."
Eustace expects to see moves in the next few years towards smaller cars that have larger engines.
When many car companies release a new model these days, the body shape has decreased while the engine size has increased - along with fuel efficiency.
As an example, Toyota's popular Corolla has gone from a 1.4 litre to a 1.8 litre engine as standard across the petrol range. That company has also introduced diesel versions in the Corolla range, with 1.4 litre and 2 litre versions.
Toyota sits in the technology boffin camp and is one of the leading companies offering hybrids and alternative power. It introduced the hybrid Prius, and hybrid vehicles are available across its range.
The need to examine fuel efficiency was a priority for former Toyota New Zealand executive chairman Bob Field, who has been a prominent advocate for reducing greenhouse gas emissions and promoting sustainability.
The cause is important for Toyota, especially with the expected trebling of the world's vehicle fleet by 2050 and the potential doubling of transport-related greenhouse gas emissions.
The company believes that most of the growth in the global vehicle fleet will come from the rapidly rising living standards in Third World countries.
The company focuses on hybrids and believes such vehicles have the ability to cut carbon emissions by more than half.
Toyota supports the use of biofuels; in Brazil it has vehicles that ran on 100 per cent ethanol from sugar cane.
Field says the ultimate eco-friendly vehicle would be powered by hydrogen. "While some companies are claiming they will have hydrogen cars within two years, there is a big difference between limited trials and mass global distribution."
While hydrogen could be the answer to the downside of petrol-based fleets, Field says such vehicles are 10 or 20 years away from being an affordable option.
