Fleet Leasing

One in three company car and van orders electric

Volvo electric vehicle plugged in

Activa Contracts is reporting that one in three (35%) fleet orders placed so far this year have been for electric or hybrid vehicles.

The leasing and fleet management firm believes the switch from more traditional internal combustion engines to electric vehicles (EVs), whether plug-in hybrid or pure EVs, has been driven in part by WLTP – the Worldwide Harmonised Light Vehicle Test Procedure.

It says that the true impact of the new system has become apparent with cars increasing by 20-30g/km, which has helped encourage drivers into a lower emission car, adding drivers seem to have gained a ‘green conscious’ during lockdown.

Activa director Lisa Temperton explained: “Lockdown came just at the right time for WLTP as many car makers had data missing so it was becoming very difficult to give company car drivers a complete picture of their new car’s benefit-in-kind (BIK) tax liability.

“Some carmakers have used the lockdown to complete their data which has been loaded into our quoting engine, but we have still got gaps in our system.”

Activa spent 2019 with many fleets trialling electric vans as well as cars, and says more companies have started to understand how they could strengthen sustainability on their fleet, in particular those vans that operate in urban areas.

Activa has received orders for vans like the Nissan e-NV200 and Renault Kangoo, while the new Vauxhall e-Vivaro is also creating some interest.

“More fleets have begun to understand that many multi-drop delivery routes that return to base can be achieved by using an electric van," continued Temperton. "Fleets are very intent on giving electric vans a go.

“The mindset has definitely changed post Covid and we believe we will see more electric vans coming onto fleet over the next 12 months.”

Fleet News has reported how leasing companies have reported record levels of demand from company car drivers for EVs.

An Arval Mobility Observatory report, which gains insight from 5,600 businesses across Europe, shows that more than half (53%) of UK businesses are already running BEVs or plan to do so in the next three years, contrasting with 41% answering the same question in 2019.

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The impact of the COVID-19 pandemic on fleet operations and business travel

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A discussion hosted by Fleet News on the UK business response to the fleet challenges presented by Covid-19. 

A panel of experts will provide an insight into the trends and changes that they are seeing, before leading a debate and discussion among participants, including delegates, on future working practices, changes to travel policies, opportunities offered by mobility solutions and implications for fleet sizes, replacement cycles, funding methods and vehicle type.

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Chaired by editor in chief Stephen Briers, in this 45-minute webinar, he will be in conversation with:

  • Dale Eynon is director of Defra Group Fleet Services and will give a fleet operator view of how covid-19 is affecting fleet operations
  • Kit Allwinter is senior consultant at AECOM and is a specialist in sustainable and active travel including shared mobility. He will provide a view on how Covid-19 is changing the way people travel and business working practices, etc. and the implications for travel and fleet activity, especially in urban areas
  • Paul Hollick, chair of the Association of Fleet Professionals. He’ll be representing the views of UK fleets, providing insight into how their operations are likely to evolve and change due to new working practices sparked by the coronavirus pandemic.
  • Simon Turner, campaign manager at Driving for Better Business, which has created a Covid-19 toolkit, driver app and management portal to help fleets back to business.

  • Stuart Donnelly, Sixt (sponsor)

Topics:

• Changes to working practices (agile/remote/office working)

• Changes to travel policies (travel to work, travel to client, travel to supplier etc)

• Implications for fleet size (new car/van sales demand)

• Impact on replacement cycles (new car sales demand) and annual mileage

• Impact on demand by vehicle type (EV, Hybrid, Petrol, Diesel)

• Changes in funding preference (fewer traditional 3-4-year contract hire lease agreements and more flexi-hire contracts?)

• Active travel policies (walk, cycle, other)

• Public transport policies (to work, at work)

• Role for other mobility preferences (car share, car clubs, mobility budgets)

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