Car fleet operations becoming much more diverse, says FleetCheck

Car fleet management is shifting in emphasis and could soon develop into three relatively equal pillars, covering conventional fleet, grey fleet and salary sacrifice schemes.

The increased viability that electric vehicles give to salary sacrifice schemes could lead to a massive increase in that sector, according to FleetCheck

The forecast comes from FleetCheck following conversations with customers about the impact of EVs and the pandemic so far in 2021 as it says a narrative is emerging about the future is looking up.

Peter Golding, managing director, explained: “There are some predictable elements. Everyone believes car fleets will cover fewer miles but that those miles will remain essential to businesses. Company cars are here to stay.

“Also, there is a feeling that public transport will not recover quickly from the effects of the pandemic. Those employees worried about infection who have moved into cars will not switch back quickly or even at all.

“Finally, the increased viability that electric vehicles give to salary sacrifice schemes could lead to a massive increase in that sector, making it a newly substantial part of the overall fleet car parc.”

These changes, Golding said, could lead to car fleet operations becoming much more diverse than had normally been the case in the past.

“An interesting point to consider is that potentially more cars are going to be used on business than ever before, and that the roles of fleet managers could increase in importance. As fleet managers become mobility managers, car management will not remain static.

“Traditional company car management will remain in place although it will change radically in itself because of the arrival of EVs. However, it is likely to become less dominant as one of the three pillars that are emerging.

“Each of these pillars creates different challenges and needs, and the overall skillset required from fleet and mobility managers will grow as well as, from our point of view as a software provider, the demands on the supporting technology.

“It is arguable that in the next few years, professionals in our industry are going to have to develop their capabilities quite substantially for these reasons. It is a really interesting and potentially demanding time.”

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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.