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

Paul Hyne, chief commercial officer, Arval UK

Although vehicle supply is still far from pre-pandemic levels due to the chip shortage, UK commercial director Paul 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.

“Since supply difficulties began to bite due to the pandemic, we have been talking to customers about the best ways to ensure that they still get hold of the vehicles they need, despite the constrictions that have been widely experienced.”

Hyne said Arval’s advice has not been radical – 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.

Arval’s data also reveals that the supply challenges aren’t deterring sustainable mobility objectives.

“Internal combustion engine (ICE) deliveries dropped by 37% while battery electric vehicle (BEV) increased by 112%, hybrid electric vehicle (HEV) by 151% and plug-in hybrid electric vehicle (PHEV) increased by 50%. This is very much in line with industry trends.

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

“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.

“Our total orders also increased by 24% during the year. This is partially a reflection of the way in which Covid affected orders in 2020, 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.”