Aug. 29, 2025
By Nick Behan
In a sector facing intense pressure to evolve from electrification to automation, Gary Smith, Managing Director of Europcar Mobility Group UK, Ireland & the Nordics, offers first-hand insight into the transformation underway. From scaling up EV fleets while managing customer readiness, to balancing the commercial demands of sustainability and leveraging AI to streamline operations, leaders like Gary are navigating a complex but opportunity-rich landscape. With over 30 years’ experience in transportation and fleet management, he shares his perspective on where the automotive rental industry is heading and what it will take to lead in a future defined by smarter mobility, data-driven decisions, and autonomous innovation.
Reflecting on your time in transportation, what’s been the most transformative change you’ve witnessed, and how has it shaped the way the sector operates today?
Connected vehicle technology has been a real game changer for our industry. Today, we can pinpoint the location of every vehicle in our fleet, which has dramatically reduced thefts and improved operational control. Beyond location tracking, connected vehicles give us valuable insights into driving behaviour, everything from speed patterns to braking habits, and this has helped us manage risk, lower insurance costs, and enhance driver wellbeing.
Perhaps the biggest advantage is in preventative maintenance. By monitoring vehicle health data in real time, we can predict when a car needs servicing before a fault occurs. This reduces downtime and keeps our vehicles on the road longer, which is critical in a high demand rental market. It also improves safety, because we’re addressing mechanical issues early, rather than reacting to breakdowns. These connected systems have essentially turned our fleet into a dynamic, data-driven network that improves efficiency, customer experience, and profitability.
What do you see as the most pressing sustainability challenge in your area of the sector, and how is your organisation responding to it - through innovation, policy, or operations?
The shift to zero-emission vehicles is both our biggest challenge and one of the greatest opportunities for the industry. While EVs are becoming more mainstream, the reality is that many customers are not quite ready to make the transition. There’s still work to do around charging infrastructure, particularly in rural areas and urban settings where fast charging is limited.
We’ve taken the view that this transition isn’t optional, it’s inevitable. That’s why Europcar has invested in building one of the largest battery electric vehicle fleets in the UK rental market. We’re also working hard to educate our customers, explaining the benefits of EVs and developing tailored rental solutions to make the switch easier, from flexible rental periods to charging-inclusive packages.
Internally, we’ve reduced the environmental impact of our operations by adopting renewable energy across many of our depots, optimising our logistics to reduce emissions, and expanding our hybrid and electric fleet options. We are positioning ourselves as an early leader in this space because we know the industry has to move fast to meet climate goals.
How do you balance commercial performance with the long-term imperative to become a more sustainable business, and where do you feel the biggest trade-offs or opportunities lie?
This is one of the toughest balancing acts we face. On one hand, EVs are cheaper to operate in the long term, lower fuel costs, fewer moving parts, and reduced maintenance. On the other hand, they’re far more expensive to acquire, and that impacts our fleet holding costs and overall financing costs.
We’re rethinking our business model to ensure we can maintain profitability while accelerating the transition to sustainable mobility. That means partnering with manufacturers, charging network providers, and government initiatives to offset some of the upfront costs. We’re also exploring how subscription and long-term rental models can make EV adoption financially viable for both us and our customers.
Ultimately, I see sustainability and commercial performance as linked. If we invest smartly in EVs and related infrastructure now, we’ll benefit from cost efficiencies and customer loyalty in the future as demand shifts towards greener mobility.
Where is AI already changing the game in your organisation (or the sector more broadly), and what excites or concerns you most about what’s coming next?
AI is beginning to make a real difference in the rental market. One of the most exciting developments for us is damage assessment. Our vehicles pass through AI-powered camera tunnels that take hundreds of high-resolution images from multiple angles, comparing pre-rental and post-rental conditions. This technology speeds up inspections, reduces disputes, and gives customers more transparency.
Beyond damage detection, AI is starting to help us optimise fleet management, predicting demand, adjusting pricing, and improving utilisation rates. In the future, I see AI being a powerful tool for automating routine admin, enhancing customer experience through smarter recommendations, and improving vehicle allocation across our network.
Of course, there are challenges too, ensuring data security, avoiding biases in automated systems, and making sure customers are comfortable with these changes. But the potential efficiency gains and operational benefits are significant.
Looking ahead to 2030, what single shift do you think will most define the future of transportation, and why?
By 2030, I believe the widespread adoption of autonomous vehicles will be the defining change in transportation. We’re talking about a complete reimagining of how mobility networks operate. Self-driving vehicles will massively reduce accidents by removing human error, which accounts for the vast majority of road incidents today.
AI-driven systems will optimise traffic flow, reducing congestion and cutting travel times. Autonomous fleets will also improve accessibility, offering new mobility solutions for people who can’t currently drive. And in cities, the shift away from private car ownership will free up space for green areas, pedestrian zones, and more efficient transport hubs.
For businesses like ours, it’s not just about adapting to autonomous technology, it’s about reshaping the services we offer. We’ll need to rethink fleet structures, insurance models, and customer experience. But I see this as an exciting opportunity to lead the way in redefining urban and shared mobility.