Business grey fleets are likely to be experiencing something of a lag when it comes to EV transitioning, which can be linked to the current rising living costs. The Office of National Statistics recently found that 87% of adults reported a rise in their cost of living from August to September 2022 . Ultimately, these factors impact whether drivers can afford the transition to electrification. 

The pandemic has seen grey fleets, cars owned by the employee rather than the employer, surge in popularity as businesses strive to cut costs. There are now around 14 million grey fleet vehicles on UK roads.     

However, grey fleets present an environmental headache for managers striving to reach sustainability goals, as they have little  control over the type of vehicles purchased and owned by employees but business transport can still count towards their emissions. 

In a recent AA Yonder Driver Poll, three fifths (63%) of drivers say they're already put off buying an electric vehicle (EV) because of the rising cost of domestic energy, when, in reality, EVs are still cheaper to run than petrol and diesel cars even after taking rising energy prices  into consideration.

New AA research also shows that one in ten used vehicle drivers are putting off updating their vehicle. Indeed, 9% of drivers with models aged more than four years old are holding off swapping their car for an EV until the 'right time'. The most common reason drivers are choosing not to upgrade is that they don't feel the need for a new one (63%). Meanwhile, younger drivers were significantly more likely to be waiting for finance or a loan to end before they upgrade their car (11% of 25-34-year-olds) than older drivers.  

Our research shows regional differences towards EV take-up too. We found drivers in London are twice as likely as those in Wales, Yorkshire and the north-east to ensure their next car is an EV (13% versus 7%). This is a likely result of the ULEZ charge, which was introduced in London in 2019.  

As a result, we expect to see grey fleet drivers hanging onto their older vehicles for longer, which will undoubtedly impact sustainability goals and also overall fleet condition - older vehicles are more prone to break down due to natural wear and tear. It's well known that businesses lose income for every day a vehicle is off the road. But with drivers displaying signs of EV transition hesitancy, what do managers need to be aware of when it comes to managing a staggered grey fleet take-up in terms of decarbonisation and risk reduction?

Make sure employees are servicing their vehicles

A third of motorists are looking to give servicing their vehicles a miss this year to claw back funds lost to the cost-of-living crisis, according to warnings from The Motor Ombudsman. However, missing a service leaves drivers at higher risk of mechanical failure, leading to periods of business downtime if vehicles are off road for any period of time. Better engine efficiency as a result of recent servicing reduces pollution and vehicle emissions too.