More than three-quarters (78%) of fleet managers aim to convert their entire fleet to electric vehicles before the Government’s 2030 ICE ban.

A total of 56% of fleet vehicles are expected to be either electric or hybrid by 2025

That’s according to new research by Churchill Expert, Direct Line Group’s flexible fleet insurance specialist.

Currently, petrol and diesel vehicles, including vans, make up two-thirds (65%) of fleets, with 16% being hybrid and under a fifth (19%) being EVs.

But fleet managers expect this breakdown to change in two years with the proportion of EVs increasing to 37% and hybrid vehicles to 20% – making for a total of 56% of fleet vehicles being either electric or hybrid.

Petrol or diesel vehicles are expected to account for 44% – a reduction of 21 percentage points in two years.

Reasons for the increased pace of transition include the increasing popularity of EVs (70%), the rise in the Government’s green initiatives such as Ultra Low Emission Zones (77%) and greater availability of salary sacrifices schemes (70%).  This transition comes as salary sacrifice schemes become increasingly available and supply chain issues remain a challenge for fleet managers.

The survey of 100 fleet manager and leasing decision-makers, conducted in October 2022, also showed fleet managers’ insurance needs will evolve as drivers switch to EVs. Nearly half (49%) want cover against damage to charging points and equipment, 10 percentage points more than those who are looking for low-priced premiums.

Elsewhere, the findings also reveal that 85% of fleet managers are optimistic about their company’s future over the coming two years. While the majority are impacted by the rising cost of living (92%) and increased energy or fuel costs (97%) optimism in the industry remains remarkably robust.

Nicola Richmond, head of Churchill Expert Flexible Fleet Partnerships, commented: “As the increased cost-of-living impacts fleet drivers, it’s reassuring to see a continued rise in the demand for electric vehicles and ongoing plans to fully convert vehicle fleets by the end of the decade. This will be in time for when all new petrol and diesel cars and vans are set to be banned from sale in 2030. For those in the process of converting their fleets to electric, it is important to have the right fleet insurance provider to support you through this journey.”