Fleet operators are shrinking their company car choice lists to maximise spending power amid rising economic pressures.

This shift, revealed by Arval UK, marks a major corporate reversal from the early 2020s, when businesses expanded vehicle selections to encourage electric vehicle adoption.

Ben Edwards, senior consultant at the vehicle leasing and mobility specialist, said the fleet focus has now firmly pivoted back to strict cost control.

“It made sense in the earlier days of electric company cars to widen choice lists. Highly favourable Benefit-in-Kind taxation meant most drivers wanted to move into an electric vehicle but there were comparatively few models available at the appropriate price points and supply, especially around the time of the pandemic, was highly erratic.

“Now the situation has fundamentally changed. Employees still want to drive EVs but the number, diversity and supply of models have all improved exponentially. Arguably, it has gradually transformed from a seller’s to a buyer’s market.”

Current macroeconomic pressures, alongside geopolitical uncertainties such as recent tensions in the Middle East, are forcing businesses to optimise fleet spending, Edwards explained.

“Really, we’re seeing a return to what might be considered traditional choice list construction, where a limited number of manufacturers and models are chosen that satisfy the widest possible range of employee needs.”

Rather than treating EVs as a separate, specialised category, businesses now integrate them directly into standard procurement processes.

“Most company car fleets are now EV-dominated but some still want to offer hybrid and internal combustion engined alternatives and, across all fuel types, there are options that provide a high degree of value, allowing employers to concentrate their spending power while still meeting human resources needs.”

Edwards added that extras provided by manufacturers were also forming an increasingly important element of their proposition to fleets.

“Some carmakers are supplying and fitting a home charger with every EV delivered, for example, and this can be a very attractive incentive, especially where the requirement for a car is a necessary job requirement.”

He finished: “More and more businesses are approaching our consultancy team to discuss their revised priorities and we are helping them create new solutions, including negotiating with manufacturers to access preferential terms.”