EV availability changing face of fleet badge policies, says FleetCheck
Fleets are revamping their badge policies to incorporate manufacturers with available electric vehicles in the rush to go electric.
The move, highlighted by FleetCheck, means that manufacturers that previously had low or non-existent fleet profiles are gaining ground as drivers look to switch out of ICE vehicles into EVs with significantly lower Benefit-in-Kind rates
Peter Golding, managing director at the fleet software specialist, said that the availability of EVs in general, especially those with sensible delivery times, is extremely variable. And this means that fleets are turning to manufacturers that have not traditionally had a significant fleet presence and fall outside of existing badge policies.
“Some companies are gaining from this in a noticeable manner. Names such as Tesla, Kia, Hyundai and even Polestar have not historically figured on company car bestseller charts but are making their way onto fleets in relatively large numbers.
“Much of this success is deserved, with the models on offer not just being in good supply but also representing some of the best core company car EVs currently available. It’s having a definite and, in some cases, a rapid effect on the badge mix seen on some fleets.”
It’s a move also highlighted recently by Arval, which said that fleets are expanding their choice lists to increase adoption of electric cars, alongside restricting petrol and diesel options, to ‘nudge’ drivers towards zero-emission vehicles.
Ben Edwards, Arval UK consultant, said last month that while both fleets and drivers are looking to go electric due to financial incentives, the widespread use of fleet policies limited to specific manufacturers’ badges was providing a barrier to adoption – and Arval has been advising operators to keep manufacturer badge restrictions in place for petrol, diesel and plug-in hybrid models, but open them up partially or completely when it comes to EVs.
It’s unclear at this stage whether the situation will lead to a long-term change in which newer manufacturers dominate the fleet market or if established car makers will reassert their presence, according to FleetCheck.
“Some established manufacturers have individual models doing well but among the big players, probably only VW can currently offer a good choice of EV models in the principal sectors of the company car market,” added Peter Golding.
“This situation will be resolved in the next couple of years as new models are introduced but it will be interesting to see whether there is an ongoing degree of displacement, especially with the predicted entry of a number of highly capable Chinese car makers into the market in the medium term adding to the potential for disruption.”