UK fleets will continue to lead EV adoption in the year ahead, increasing consumer acceptance and helping to create a viable used vehicle market, according to a new podcast.

Fleet EV adoption leads to increased consumer acceptance

Lorna McAtear, deputy chair of the Association of Fleet Professionals, told Cox Automotive that the EV sector had faced numerous challenges in 2023, most notably the Government’s change of deadline on the ICE ban.

McAtear, who is head of fleet at National Grid, added that the shift had hampered the objectives of many vehicle operators, as they are invariably focused on long-term planning and require consistency.

But despite this, fleets remain at the forefront of the EV transition.

She said: “We know we’re going to be the driving force this year and why do we know that? Because the manufacturers have come back to us offering discounts. Fleets will continue to be the backbone of this change.

“Fleets face many challenges, especially with the hangover of last year when there was so much negative press. The Government rolled back the deadline, so there’s a retail perception challenge and all those that were on the cusp of adoption have kind of said ‘If it’s not important to the Government, it’s not important to me.’

“It’s fleets that are going to drive this forward. It’s fleets that feed a lot of those vehicles into the second-hand market. It’s fleets that put drivers into those vehicles that would otherwise never have got into them.”

She added that the concerns about EV infrastructure were understandable but insisted more time was needed to ease those worries as the transition continues.

And with a general election planned in 2024, McAtear said the best thing a new government could do for fleets was to avoid a change of heart.

“All the fleet sector has ever asked for is consistency,” she said. “Because, once you’ve got some of those targets, you’ve got some deadlines and you know where the money is to meet them.

“I also think simpler terminology where EVs are concerned is long overdue. So many in the EV world overcomplicate the language.”

Cox Automotive’s insight director Philip Nothard echoed the comments about the continued importance of the fleet sector to EV adoption going forwards.

“Fleets have a crucial role in adoption because, as 2023 statistics show, they accounted for approximately 64% of all new battery electric vehicles bought and more than half of all new registrations generally.

“With EVs set to make up a growing proportion of the overall new car parc, thanks to the ZEV mandate, a rapidly changing OEM product mix and other factors, buyers need to be found for these new EVs. Without a sudden and dramatic turnaround in consumer appetite, fleets will continue to shoulder that burden.

“Our forecasts predict a relatively flat 2024 for new registrations which further underlines the crucial role fleets have in shaping the demand for EVs and their eventual supply to the used market.”

Agency model will have a greater impact on smaller fleets

Cox Automotive’s podcast with Lorna McAtear also explores the potential impact of the agency sales model on fleets,

Lorna McAtear said: “I always have to go away and check what people mean when they talk about agency model, as it’s what I’ve always used. The bigger the fleet, the more likely you’ll have to deal directly with the manufacturer. I don’t think I’ll see any difference.”

But she warned that smaller fleets, more used to dealing with dealerships, could struggle more with the change. A pure agency model will mean a less personable arrangement, as they may, in many cases, have to negotiate with large OEMs instead.

Philip Nothard said: “We believe 2024 will see a collective will for stability across the automotive industry. Industry players are facing many economic and political challenges, fleets included. Cox Automotive will continue to help fleet operators through the EV transition with solutions, data and expertise.”

Cox Automotive’s Insight Report podcast with Lorna McAtear is here. Cox’s forecasts for 2024 and beyond are also published as a part of its Insight Report, which includes a look at the key issues currently facing dealers, OEMs and fleets.