Cost pressures are impacting fleet plans to go electric and delaying net zero, new research has found.

By deferring EV adoption, fleets are missing out on cost and eco savings

Conducted by Bridgestone and Webfleet, the survey of 210 fleet decision-makers found more than three-quarters (76%) are postponing their fleet electrification plans as a result of a squeeze on budgets.

A further 78% said cost pressures were delaying plans for fleet technology adoption.

But the two firms have warned that such approaches are short-sighted.

Andrea Manenti, vice president north region, Bridgestone EMIA, said: “Cutting capital spend is the go-to survival strategy for many businesses as rising costs hit their bottom lines.

“But when it comes to fleet decarbonisation and digital transformation, it is a case of kicking the proverbial can down the road. What’s more, by deferring expenditure and adopting a short-term approach to cost-control in these areas, longer-term profitability risks being compromised.”

Instead, Manenti explained that with careful planning and management insights, the total cost of ownership (TCO) of electric vehicles can be lower than for their fossil-fuelled equivalents, resulting in savings over the fleet lifecycle.

He added: “Similarly, the cost of fleet tech investments can be rapidly offset by higher productivity, or by savings on everything from fuel and maintenance to insurance and administration.”

The report also revealed planned cost-cutting measures, including fleet downsizing, cited by almost a third (32%) of those businesses surveyed, while almost two-thirds (61%) anticipate having to lay off fleet-related staff over the coming months.

A high proportion of fleets (72%) are also looking to extend their vehicle replacement cycles.

But Beverley Wise, Webfleet regional director for Bridgestone Mobility Solutions, also pointed out that digital systems that draw on fleet insights to deliver efficiency and productivity gains can prove invaluable, as the so-called business squeeze continues to stretch resources.

“For fleets that have yet to deploy the latest, advanced fleet management solutions, now may be the time to do so. The return-on-investment opportunities – alongside significant sustainability benefits – are far reaching, offering a precious route to greater business resilience when it is needed most.”

The full ‘The Cost of Business Squeeze’ research report is available here.