Implementing net zero emissions is the ‘biggest’ challenge facing fleets

Every year the Arval Mobility Observatory conduct one of the most authoritative pieces of research in the fleet and mobility sectors – the Fleet and Mobility Barometer.

The research found that companies of all sizes are feeling more optimistic about their growth prospects compared to last year, though this optimism varies depending on the size of the company.

Overall, 38% of respondents anticipate an increase in the number of cars and vans in their fleets over the next three years, a significant rise from last year’s 29%. On the other hand, only 5% predict a reduction in their fleet sizes.

This results in a net positive position of 33 points (growth minus reduction), up from 24 points the previous year. Smaller companies are the most optimistic, with those employing 10-99 people showing a 39-point positive balance and those with fewer than 10 employees showing a 37-point positive balance. In contrast, the largest companies are less optimistic, with only a 16-point positive balance. In this group, a relatively low 27% expect their fleet size to increase over the next three years, while 11% anticipate a decrease.

This positions the UK as one of the most optimistic countries in Europe, even though its economic outlook isn’t the strongest.

Shaun Sadlier, head of Arval Mobility Observatory in the UK, said: “There are a wide range of challenges currently facing fleets, almost certainly more than at any point in the history of the sector, and the results for this question in the Barometer show which are weighing most heavily on the minds of decision-makers.

“Overall, these difficulties are rated by fleets in much the same order as when asked last year, showing that the issues which our sector faces are persisting.

“Progress is being made in all of these areas, something that we see every day at Arval UK, but none are likely to be resolved very quickly.”

The top five takeaways from the study are:

1. Fleets are positive about future growth:
38% of respondents are predicting an increase in car and van numbers in the next three years, a substantial increase from the 29% seen in 2023. Conversely, just 5% are forecasting their fleet sizes will fall.

2. Electrification is progressing quickly:
By 2027, fleets expect 40% of the cars they operate to be battery-electric vehicles while a further 9% will be plug-in hybrids and 7% other kinds of hybrid, meaning a total of 56% will be electrified either completely or partially.

3. Access to charging is the number one barrier to electrification:
Poor availability of both public and employee charging facilities was mentioned by more than four out of 10 of those surveyed.

4. Safety is the top consideration when drawing up company car choice lists:
Safety ratings and ADAS systems are the top factors used by fleet managers when looking at car choices, followed by low emissions and corporate image.

5. Manufacturers new to the UK market are likely to be accepted:
25% of fleets say they are already adding new market entrants to their choice lists, while 23% are considering doing the same. Also, 21% are willing to operate vehicles from these manufacturers once they become more established in the UK.

The biggest challenges facing fleets

Implementing alternative fuels is the biggest challenge facing fleets, according to the AMO survey. Almost four in 10 (39%) fleets listed it as a challenge, with 19% saying it is their biggest issue. However, fleets listed nine challenges in total, a wide range which is “almost certainly more than at any point in the history of the sector”, said Sadlier.

The top challenges mirror last year’s AMO findings, suggesting that while progress is being made across all the areas, none are likely to be resolved quickly.