New car supply challenges not deterring fleet switch to electric

By / 3 years ago / UK News / No Comments

Fleets are pushing ahead with sustainable mobility objectives despite the ongoing supply chain challenges impacting the new car market.

While Arval’s deliveries of internal combustion engine (ICE) cars dropped by 37% in 2021, battery electric vehicle (BEVs) increased by 112%

New figures from Arval UK reveal that while its deliveries of internal combustion engine (ICE) cars dropped by 37% in 2021, battery electric vehicle (BEVs) increased by 112%.

Meanwhile, deliveries of hybrid electric vehicle (HEVs) were up by 151% and plug-in hybrid electric vehicle (PHEVs) increased by 50%.

The move is very much in line with industry trends; SMMT data reveals that diesel registrations last year were down 48.1% while petrol fell by 15.7% (both excl. mild hybrids). But BEV registrations were up 76.3%, PHEVs rose 70.6% and HEVs were up 34.0%.

As a result of the move to electrification, Arval’s UK fleet composition is changing quite rapidly, showcased by 2021’s order bank.

Commercial director Paul Hyne commented: “We saw car orders for ICE drop by 22% while BEV increased by 135%, HEV by 153% and PHEV by 78%. This shows that electrification across our entire UK fleet is a rapidly developing trend.”

Arval’s data also shows its total orders increased by 24% during the year.

“This is partially a reflection of the way in which Covid affected orders in 2021, but also illustrates both Arval UK’s current level of growth and the fleet sector’s overall degree of resilience in the face of the challenges it has experienced in the last couple of years,” said Hyne.

Meanwhile, Arval’s deliveries of new cars to drivers fell by just 2% in 2021 compared to 2020, despite ongoing industry-wide supply issues.

Although vehicle supply is still far from pre-pandemic levels due to the chip shortage, Hyne said the firm was working closely with fleets and drivers to manage the shortfalls, while partnering with manufacturers to forward-order vehicles, helping to offset the impact.

It’s working closely with manufacturers, dealers and customers and helping them to plan ahead, order as early as possible, look at alternatives and redeploy vehicles.

“We will continue to work hard to ensure that these options produce the desired results for our customers,” he added.

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.