Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Fleet electrification set to get tougher in 2024, AFP says
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Fleet electrification set to get tougher in 2024, AFP says

Date: 07 December 2023   |   Author: Sean Keywood

The process of electrifying fleets is set to become more difficult in 2024, according to the Association of Fleet Professionals (AFP).

The organisation's chair, Paul Hollick, said that a number of factors were combining to potentially slow the rate at which EVs are adopted by businesses.

According to Hollick, fleet managers will need new strategies to maintain momentum towards electrification.

He said: "When it comes to electrification, so far fleets have largely been picking low hanging fruit in large quantities. That means switching company car drivers with space for their own off-road chargers into EVs, with very low personal taxation as a considerable carrot. 

"This has been hugely successful, and we expect that part of the market to continue to move forward as more models become available and electric fleet cars become the absolute norm.

"The issues lie elsewhere and the list is quite long. For example, there is still a general absence of pick-ups, 4x4s and other specialist vehicles in the EV sector, towing capacity is uncertain, insurance costs are rising very rapidly and are sometimes prohibitive, and there are still no easy charging solutions for people living in terraced houses or apartments."

Hollick said that that creating a consistent used market for EVs was a further challenge, and one where fleets needed to work in conjunction with the remarketing sector.

He said: "The drop in EV values seen in the last year has made dealers understandably wary while confidence among at least some consumers has been shaken by the government's 2035 move and a steady stream of EV-bashing stories in some sections of the media.

"Also, we're in a situation where fleets arguably have too many of the 'wrong' EVs for the used market. There is a surfeit of prestige saloons and SUVs around, and a shortage of bread-and-butter family hatchbacks. 

"This has, to some extent, been a reflection of the kind of EVs available to buy so far, but it does lead to supply distortions."

Despite the challenges, Hollick said that fleet managers were working hard to overcome them.

He said: "There is no doubt that this phase of electrification is tougher and there are no easy answers to any of the problems that are being encountered. 

"However, we're seeing many kinds of new best practice ideas being developed and shared across the AFP that are having an impact. It is one of those moments when being a member of the organisation brings maximum benefits."

 



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