What will be the impact of 2nd generation smart tachographs?

The advent of digital tachographs has substantially reshaped the European transport landscape, enhancing data reliability, security, and regulatory compliance. As Europe moves forward, the introduction of the second generation smart tachograph — DTCO 4.1 — marks another major advancement. We explore the key features, regulatory context, affected vehicles, operator implications, and opportunities for telematics service providers (TSPs) arising from the deployment of this latest technology.

What is the second generation smart tachograph?

A tachograph is a mandatory device fitted in commercial vehicles to automatically record driving time, rest periods, vehicle speed, and distance. The second generation smart tachograph, officially named DTCO 4.1, is the successor for the initial smart tachographs (DTCO 4.0), introduced in 2019. It incorporates significant enhancements, particularly designed to facilitate stronger enforcement, reduce fraud, and promote regulatory compliance.

The introduction of the DTCO 4.1 was mandated by European Commission Regulation (EU) 2021/1228, with a phased introduction beginning in 2023. In the first phase, all newly registered commercial vehicles above 3.5 tonnes were mandated to be equipped with a DTCO 4.1 smart tachograph. In phase 2 - by end of 2024 - vehicles engaged in international transport registered from June 2019 onwards were mandated to retrofit a DTCO 4.1 device.

Phase 3, due by by mid-2025 requires all vehicles with analogue or digital (non-smart) tachographs to upgrade to DTCO 4.1 for international transport.

Which vehicles are affected by the DTCO 4.1 regulations?

The DTCO 4.1 legislation specifically targets the following vehicle categories:

Commercial vehicles exceeding 3.5 tonnes, including HGVs (Heavy Goods Vehicles), buses, and coaches, and; Any vehicle operating in international transport across EU borders.

What are the key Features of DTCO 4.1?

DTCO 4.1 is a logical evolution of DTCO 4.0, applying lessons learned from the previous generation of tachographs, whilst also implementing new features that help facilitate wider European Union initiatives, such as the EU's Mobility Package 1 and it's features include:

GNSS Integration: The Global Navigation Satellite System (GNSS) within DTCO 4.1 records vehicle position at the start and end of work periods, and at every three hours of cumulative driving. Which is crucial for ensuring compliance with drivers’ hours regulations.

DSRC (Dedicated Short-Range Communication): DTCO 4.1 integrates DSRC technology, allowing roadside authorities to remotely access limited data without stopping vehicles, thus enhancing efficiency in compliance checks and enforcement operations.

Enhanced Security Protocols: Encryption and security mechanisms are integrated into DTCO 4.1, to mitigate the risk of manipulation and fraudulent data.

Remote Detection of Manipulation: Remote detection allows authorities to identify potential security breaches and malfunctions rapidly, streamlining enforcement and helping to police compliance.

Implications for Fleet Operators

Fleet operators obviously face a number of operational changes due to DTCO 4.1. To begin with, they must plan and execute the retrofit or upgrade of devices to ensure all affected vehicles are equipped with compliant units before the regulatory deadline this year. Operators must also ensure adequate driver training is in place to ensure the system operation is well understood, compliance requirements are met, and the implications of non-compliance are made clear. Obviously there are continuing GDPR requirements, but furthermore Fleet Operators should consider whether their TSP/FMS provider has the ability to integrate with the tachographs too.

So what are the opportunities and implications for TSPs?

The transition to DTCO 4.1 offers TSPs a variety of opportunities, mainly revolving around compliance management and driver monitoring. The further development of compliance dashboards, alerts, and automated reporting solutions would be highly valuable for fleet operators. Similarly, tamper warnings built-in to driver monitoring systems, and integration with driver verification services would also present a development opportunity.

What about the challenges?

Despite clear benefits, the transition poses challenges. Fleet operators will encounter increased costs due to retrofitting vehicles, enhanced training needs, and software upgrades and these costs will initially impact smaller operators, and those operators that conduct international travel with vehicles over 6 years old, disproportionately, leading to some disruption in provided services, though - also - the opportunity for telematics services to find more clientele in regions not previously explored.

So what can we learn?

Obviously, the introduction of the second generation smart tachograph represents an added complexity - even if only temporariliy - for commercial vehicle operators and fleet management technology. Fleet operators must adjust processes, technologies, and management practices, which do present some opportuinities for TSPs and FMS providers to evolve their product portfolio to match the changing landscape.

Although challenges exist, the long-term benefits in compliance and safety enhancement are clear, whilst telematics service providers are being presented with the opportunity to innovate solutions that use the data streamed by DTCO 4.1. Those who prepare proactively for the regulation will stand to benefit most by positioning themselves effectively for future demands from Fleet Operators.