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Fleet choice lists shifting to encourage electrification, Arval reports

Date: 22 February 2022   |   Author: Sean Keywood

Fleets are increasing the diversity of manufacturers on their vehicle choice lists in order to encourage their drivers to electrify, according to leasing company Arval.

It said it had been supporting customer fleets to revise their vehicle policies, in order to increase the numbers of EVs available to their drivers at the expense of petrol and diesel models.

Arval said that increasing the number of different makes of EV on choice lists opened up access to more vehicles, and potentially speeded up delivery times amid ongoing new car supply shortages prompted by the 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. 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.

"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, but open them up partially or completely when it comes to EVs - and this is something that has been working well."

Edwards said that the area where fleets had most to gain from removing badge preferences was the ordering of job-need cars, rather than perk vehicles, in part due to EVs 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.

"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 said that Arval's advice to fleets was to make electrification as simple as possible.

"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.

"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. 

"It's all about making the electrification process both easy and effective."



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