Supply shortages are hitting the fleet sector hard, with lead times of up to a year now the norm for all vehicle types as manufacturers prioritise retail channels.

The BVRLA says most available vehicles are being channelled to retail customers as manufacturers prioritise profit margins over fleet market share

The BVRLA’s latest Business Impact Survey shows that vehicle availability is as bad as it has been since the pandemic and the continued disruption from the semiconductor shortage and war in Ukraine is restricting business growth.

The data also reveals that on average 58% of ICE van orders are taking 10 months+ from order to delivery, along with 51% for plug-in hybrid vans and 44% for fully electric vans.

BVRLA chief executive Gerry Keaney said: “The supply chain challenges that beset our industry show no sign of abating. BVRLA members continue to show remarkable resilience and creative thinking in supporting their customers, but the outlook is a real concern. Lead times are extending, orders are being cancelled and most available vehicles are being channelled to retail customers as manufacturers prioritise profit margins over fleet market share.”

The issue was explored in the BVRLA’s latest Industry Outlook webinar, which saw more than 300 BVRLA members given an update on the supply crisis, including data from Cap HPI reinforcing that manufacturers have clearly been prioritising retail over all forms of fleet.

Yesterday’s publication of new car registration figures illustrates this further – while sales to larger fleets fell 34.4%, private registrations were up 8.2% and ‘Business’ registrations to companies with fewer than 25 vehicles rose 20.0%.

Gerry Keaney said such a move was amplifying the impact on the fleet sector and added that such a “short-sighted approach” will cause broader issues across the industry.

“As a result of restricting vehicle supply to the fleet sector, the inevitable consequences are going to be increased costs to businesses, reduced choice to drivers and higher emission levels. The shift away from fleet has gone too far and needs to be addressed before the impacts are seen on an economic and environmental scale.”

The BVRLA’s research also shows the impact on the sector – the vast majority of BVRLA members listed supply issues as their primary concern, while 71% say lack of vehicle availability will negatively impact future performance.

The knock-on impacts of extended lead times include vehicles being held on fleet longer, pushing up maintenance costs, as well as customer expectations not being met – 92% of members say customers are making compromises on vehicle choice due to lack of availability.

But members are providing a variety of solutions to keep drivers on the road, including flexible rental options – particularly on vans – which have seen significant uplifts in demand. Salary sacrifice, business contract hire and used car leasing are also growing in popularity, as driver perceptions on mobility evolve.