Vehicle electrification and recession-related challenges look set to be the key fleet issues of 2023.

Fleet managers will be under “considerable pressure” to help employers advance their EV agenda while also controlling costs

The Association of Fleet Professionals said it would be a tough year for the sector and fleet managers would be under “considerable pressure” to help their employers advance their EV agenda while also controlling costs.

Chair Paul Hollick expounded: “Fuel expenditure is going to help drive this line of strategy, alongside environmental concerns. Petrol and diesel prices remain stubbornly high and the impending fuel duty increase will further concentrate minds. Even given that electricity prices could increase in the Spring when the government rethinks its price cap, electrification is going to look more attractive than ever in financial terms.”

It’s an area where the AFP can provide significant help, including sharing information about members’ EV experiences.

“Currently, several of the largest fleets within the AFP are deploying electric cars and vans in large numbers, and we are sharing their learnings as far and wide as possible through a variety of channels,” Hollick outlined.

A key challenge given these objectives, he continued, was that vehicle supply was likely to remain poor for the whole of 2023 – and this will inevitably affect the rate of electrification.

“Different manufacturers are making different noises about whether production issues are likely to improve next year but the bottom line remains that there is a massive backlog to clear before the situation has any chance of improving. Electrification can only happen at the rate of supply.”

And with many company vehicles already being operated well beyond their originally planned end-of-fleet point, this will create a further knock-on effect – and place extra demands on fleet managers to ensure cars and vans are compliant and roadworthy.

Next year will also see the AFP issue its new Tax and Legislation Manifesto in early 2023, setting out its thinking in these key areas.

Hollick summed up: “It’s positive that the recent fiscal statement provided much increased certainty over Benefit-in-Kind taxation and also that we’ve seen some action over AER but we’d like to keep the dialogue going with government to achieve further improvements in the latter as well as campaigning in a number of related areas. The document is in its final stages of preparation and we plan to issue it soon.”