Business Fleet Interest In Electric Cars And Mobility Solutions Rockets< Back to blog
5,600 business fleet managers in 20 countries have shown a majority interest in using electric cars and mobility solutions, a survey has revealed.
The Arval Mobility Observatory is an annual barometer that shows mid- to long-term trends of business fleets. This year, the survey ran from January to mid-March and found market trends were geared towards zero-emissions company vehicles, smarter mobility and leasing.
Read on for a full breakdown of Arval‘s findings and discover what the current company tendencies are for transport options.
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61% of companies switch to electric cars or consider it
It’s no secret that there are many benefits to businesses choosing electric cars. The current 0% BIK (Benefit In Kind) tax rate – which only rises to 1% and 2% in the next couple of years – benefits employees massively. At the same time, employers get a good deal by switching to EVs because of the lower running costs and greener image they provide a company with.
The 16th edition of Arval’s survey further highlights this growing shift of business fleets to electrified vehicles. Namely, 61% of total fleet managers surveyed have either made this shift or are considering it within the next few years.
Of those companies that are yet to commit to an electric car fleet, or already have, the survey also found:
- Hybrid vehicles (HEVs), plug-in hybrid vehicles (PHEVs) and battery electric vehicles (BEVs) are all technologies being considered.
- 34% of companies have already implemented one of the above technologies for its fleet vehicles.
- Brazil demonstrates the biggest uses of electric vehicle tech (49%) in company fleets, followed by Norway (48%) and the Netherlands (47%).
60% of companies have already implemented mobility solutions for employees
Those mobility solutions preferred by business fleet managers are:
- Public transport (33%).
- Ride sharing between employees (28%).
- Corporate car sharing (19%).
- Bike sharing and other two-wheel solutions (10%).
Looking at the use of mobility services by country, the places where this transport solution is being implemented most are Brazil, Turkey, Switzerland, Austria and Belgium (70% of companies).
On the other hand, less than 60% of companies in Poland, Germany, Spain and the Nordic countries (Denmark, Finland, Sweden, Norway) have at least one mobility solution in place.
Business fleet leasing the main form of finance for larger companies
Of those countries surveyed, including the UK, leasing is the preferred method of finance for 36% of large companies and 43% of very large companies.
The cost-effective benefits of vehicle usership versus ownership appears to be a big driver in the decision of these larger organisations choosing leasing. Specifically, leasing agreements reduce company downtime (i.e. brand-new vehicles covered by the manufacturer warranty) and monthly payments are massively reduced thanks to being VAT-free for VAT-registered businesses.
Yaël Bennathan, Head of Arval Mobility Observatory said: “This major global study conducted in the first quarter of 2020 confirms the acceleration observed over the past two years towards more diversified mobility solutions and greener fleets.
“The percentage of companies already using electric motor vehicles is still low but is set to increase sharply over the next three years, to a large extent helped by the post-Covid19 measures recently announced by various governments at national and international levels.”
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The bigger the company, the greater the use of telematics
Successful fleet management requires a good telematics reporting system that tells a business everything it needs to know about its vehicles.
From fuel consumption to driver behaviour tracking and the amount of downtime each fleet car, this data-driven approach helps companies identify where potential revenue loss could occur. Using these figures, businesses can find out how to cut cost on company vehicles.
According to Arval’s survey, 23% of the smallest companies used telematics to a “penetrative” degree, compared with 54% in the largest companies.
Data from the responses also uncovered three limiting factors that affected business’ decision to use fleet telematics. These are:
- Return on investment (46% of companies)
- Usefulness of the data (41%)
- Resource available to manage the data effectively (36%)
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