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Supply problems becoming major threat to fleet electrification plans, AFP warns

Date: 01 February 2022   |   Author: Sean Keywood

Limited supply of new EVs is becoming a major threat to fleet electrification plans, with little prospect of the situation improving in the near future, according to the Association of Fleet Professionals (AFP).

The organisation said that the situation, which has mainly been caused by the ongoing global semiconductor crisis, meant some fleets were considering adding petrol and diesel vehicles back onto their choice lists.

Chair Paul Hollick said: "We are in a position where many company car drivers are placing huge pressure on their employees to move them into EVs because of the current benefit in kind advantages but the supply to satisfy that demand is very frequently unavailable.

"Some manufacturers are even asking fleets to take certain EVs off choice lists because they simply do not know when any orders might be able to be fulfilled and, to fill the gaps, some employers are considering readopting ICE vehicles, which seems like a deeply retrograde step but might be the only practical solution."

Hollick said the situation was leading some fleets to adopt unusual methods to find vehicles.

He said: "Because their usual supply sources are failing, they are using social media such as LinkedIn to issue general appeals for any leasing companies that can provide vehicles of the type they need. 

"This creates a potential issue by taking them outside of trusted supply arrangements."

In addition, Hollick said the problems were not only affecting EVs themselves, but also the home charging facilities needed for many drivers to run them effectively.

He said: "Semiconductor shortages are at the heart of most EV supply disruption and the same is true of chargers. Some drivers who have been able to get cars or vans are therefore unable to charge them effectively. This is creating a further layer of frustration.

"Certainly, there is a view emerging across our organisation that the current situation makes the government's 2030 rule for complete production electrification look increasingly optimistic. The nearest time that it appears supply might normalise is well into 2023 and it would now require a huge effort to meet the official deadline."



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