News analysis
A choice selection F
leets are increasing the diversity of manufacturers on their vehicle choice lists in order to encourage their drivers to electrify, according to international vehicle leasing company Arval.
Arval said that it had been supporting its customer fleets to revise their vehicle policies, in order to increase the numbers of electric vehicles (EVs) available to their drivers at the expense of petrol and diesel equivalent models.
Arval said that increasing the number of different makes of EV on choice lists opened up access to more vehicles, and potentially even helped to speed up delivery times, amid ongoing new car supply shortages prompted by the current global semiconductor crisis.
Arval UK consultant Ben Edwards said: “We are at a point in time where there is considerable demand for EVs from fleets who are working towards net-zero targets and also from their drivers who want to minimise their BIK tax bill – that’s a natural financial incentive to make the switch.
“However, a potential barrier to adoption is that large numbers of fleets operate policies which are limited to specific manufacturers’ badges,” he continues. “This approach used to work well by concentrating buying power and simplifying choice lists, but really doesn’t offer drivers enough choice in the range of models which are available in the current EV market.
Arval has been having success in this market thanks to advice they offer to fleets. “What we have successfully been advising fleets to do is to keep manufacturer badge restrictions in place for petrol, diesel and plug-in hybrid models,” Edwards said, “but open them up partially or completely when it comes to EVs – and this is something that has been working well.”
Edwards explained that the area where fleets had the most to gain from removing badge preferences was the ordering of job- need cars, rather than perk vehicles. This is in part due to electric vehicle options being offered by manufacturers that did not previously have a major presence in the fleet market.
He explained: “At the prestige end of the market, which may be reserved for directors or senior staff, manufacturers generally have been able to offer more EV choices, but it is in the lower grades that the selection of models has been relatively limited.
Fleet choice lists are shifting to encourage electrification, according to Arval. Sean Keywood reports.
“It’s all about making the electrification process both easy and effective.”
“Here, by opening up choice lists, we are seeing some manufacturers make inroads into the fleet sector who have not necessarily been part of the core company car market in the past but are now able to provide strong EV models with comparatively good supply.” Edwards added that Arval’s advice to fleets was to make electrification simple, addressing whole-life costs in comparison to diesel or petrol vehicles.
“As a company, we’ve consciously adopted a core message that EV adoption is simple, showing that if you look at whole-life costs, an electric car is not only practical from an operational point of view, saving your driver considerable amounts in tax, but it also makes sense for the organisation, as whole life costs of EVs are often lower than a petrol or diesel equivalent,” Edwards explained.
“As we move beyond what you might call early adopter fleets into the mainstream, emphasising the core viability of electric cars alongside their obvious taxation and environmental advantages is the key to driving greater uptake.”
For Edwards, at the crux of the fleet electrification discussion must be the aim of refining it to a seamless process. “It’s all about making the electrification process both easy and effective,” he said.
www.businesscar.co.uk | March 2022 | 7
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