The 12 months of 2023 brought a whole host of challenges for fleets – and many will be hoping for an easier ride in 2024. Whether that will happen remains to be seen, but optimism and enthusiasm abound. We’ve brought together figures from across the fleet industry to offer their thoughts on what to expect.

Customer experience

How to put the driver in the driving seat

James Starling, business services director at the AA

James Starling, director of business services, AA

Across the fleet and automotive industry, customer experience, value and innovation that challenges the status quo is going to become even more important in 2024. We’ve seen customer demand for convenience rise since the pandemic and now, given the economic backdrop we all face, quality and value will become ever more critical. But this demand for value isn’t just about cost. It’s about products and services that better meet customer needs and that deliver more. In 2024, service providers are going to have to delve much deeper into understanding their customers’ pain points and deliver tailored solutions that make a real, measurable difference to their business.

We’ll see fleet operators and drivers analysing the value they are getting from services and products in much finer detail – and I would urge businesses not to be afraid to ask providers to support with this. Ask for the detail on KPIs and how these are being met, along with updates on the performance of a product or service, as well as plans for continuous improvement. We’ll see performance reviews taking place on a more regular basis to drive performance improvements and I think that can only be a positive thing for everyone involved.

Disrupting the status quo

To get better value from fleet processes, 2024 will see a much wider adoption of innovative end-to-end solutions that drive efficiency and disrupt siloed product models. These solutions will be focused on streamlining fleet management, increasing efficiency and improving costs in ways that can have an impact on both business performance and the bottom line.

We’ve seen the benefits of this joined-up approach with our end-to-end accident management service and this is set to grow next year. As is Drivetech Consult, our new bespoke fleet management service. It’s tailored to ease the burden on businesses that don’t have a dedicated fleet management resource, to help them reduce accidents, enhance driver safety and wellbeing and, ultimately, increase operational efficiency and save money too.

One of the shifts in the world of fleet vehicles is the growing emphasis on electrification, despite the Government moving the 2030 ICE ban date back to 2035. Going into 2024, we’ll continue to see rapid transformation of our transport at a faster rate than at any time in our history and still we are focused on the future and enabling smoother and safer journeys. As digital road networks are rolled out, smart energy grids and connected technologies will unlock opportunities for increasing the efficiency of future business journeys.

Access to data will enable safer, more efficient fleet operations. From planning journeys to predicting faults, personalisation to autonomous vehicles, subscriptions and MaaS, we’ll bring real-world understanding and technologies to help businesses seize the opportunities to transform journeys in a rapidly advancing transport landscape.

Contract hire

Put in the hard yards

Steve Beadle, head of 0Zone team at Grosvenor Group

Steve Beadle, head of 0Zone team, Grosvenor Group

The mass adoption of electric vehicles within UK businesses will require expert guidance for fleet managers and decision-makers in 2024 so they can overcome the challenges of transition.

While a greater share of company fleets is now being made up of EVs, fleet managers will also encounter the ‘hard yards’ of the zero-emission transition. In the very early years, our experience was that electric vehicle uptake was typically led by drivers who were EV evangelists. These were early adopters who were knowledgeable, keen to change and advocates of emission-free driving.

The second, larger phase of EV uptake at the Grosvenor Group has been down to the proactivity and expertise of our 0Zone team. The Grosvenor Group comprises Grosvenor Leasing, which has been providing contract hire solutions for over 40 years – and Interactive Fleet Management, which is our specialist fleet management team.

Since 2017, the 0Zone team has been working closely with both our contract hire and fleet management customers to develop appealing ULEV and EV choice lists and car policies as well as educating, supporting and advising drivers. This has been extremely successful, with over 90% of vehicles ordered now having plug-in or self-charging capability.

Support services

However, there is still resistance to moving to fully electric vehicles by some drivers and, where this is the case, companies will need even greater proactivity and support. This situation will involve heightened education and training on EVs, reassurance and advice regarding charging and range, raising awareness about the financial and tax benefits of choosing an EV and more support around the suitability of electric vehicles to meet drivers’ job roles and personal lifestyles.

It will also be important to demonstrate that a complete support structure is in place for drivers of EVs, as resistance to change can often be due to a fear of the unknown.

Of course, we have to be pragmatic as there are still drivers who may not yet be well-suited to a fully electric car; perhaps due to where they live and work, the type of job they do and the miles they cover. In these scenarios, our 0Zone team will review their options carefully and may suggest a plug-in hybrid is better for them this time than a fully electric.

However, there are still large numbers of drivers who could very readily go fully electric with their next car. It is important to support these in reaching the right decision. After all, any petrol or diesel car added to a fleet now is likely to be there until 2026 or 2027, which slows down the green agenda for the business.

Charging

Plug the gap in your fleet

Lindsay Wallace, executive director, sales and innovations (Europe), FOR:EV

Lindsay Wallace, executive director, sales and innovations (Europe), FOR:EV

Have you electrified your fleet yet? If the answer is no, we think we know what’s stopping you. You might be capital-constrained. Your existing network may already be at capacity. Maybe you’re thinking the time and admin burden will be too much, as you’re already so busy with your core business activity. Whatever the problem, 2024 could be the time to rethink your EV strategy – and that’s where we come in.

At FOR:EV, we specialise in making the difficult, simple. Our ‘charging as a service’ model helps support your transition to an electrified fleet by taking care of everything for you.

We aim to be a one-stop-shop, full turnkey solution. We can look after the civils, planning, electrification, installation and maintenance of your charge points. If you need them, we can even supply you with electrified fleet cars, vans or trucks. Maybe you’ve already started the transition to electric, but need some support to progress your plans? We can help with that too.

When it comes to finance, we’re different from the rest. You’ll pay nothing up front and then we’ll invoice you an agreed all-inclusive cost per kW every quarter, reducing your admin and helping you to budget easily.

One of our customers with a 150-vehicle fleet reduced the number of invoices it was dealing with from over 200 a year to just four – think of how much time that would give your team to focus on their core business!

A service designed for you

We don’t take a one-size-fits-all approach. Not only do we do all the hard work, we design our service around your business needs. Your dedicated account manager will get to know your fleet operation and your charging requirements. You’ll also have access to local service support, 24 hours a day, 365 days a year.

Many of our customers initially thought they were ‘too small’ for a service such as ours, but this isn’t the case. We’re always open to a chat about your current needs and prospective plans.

Unlike other providers, we won’t tie you in to a long-term contract. Talk to us about our short-term, flexible and future-proofed agreements that allow you to add or remove vehicles, and increase or decrease your energy requirements.

We believe in making things as simple as possible – and that extends to the charging process itself. Our charge points use the latest technology to provide a user-friendly, reliable and stress-free charging experience.

Boosting your green credentials

The electricity we supply is 100% green. We will share data and insights with you about the amount of carbon emission offset your business will attain, which can help you demonstrate those all-important ESG credentials to your stakeholders.

One of our current fleet customers with 150 vehicles, each driving around 8,500 miles a year, reduced their annual CO2 emissions by 406,000 MT CO2e by transitioning to electric vehicles.

Salary sacrifice

EVs for the many, not the few

Paul Gilshan, CEO, Tusker

Tusker CEO Paul Gilshan

Here at Tusker, we’ve seen a real shift in 2023 in the mass market adopting EVs. The fleet has grown to more than 35,000 vehicles – an increase of almost 10,000 in just a year. With more than 80% of those vehicles pure EV, the adoption of electric cars is continuing to gather pace.

Manufacturers are now producing EVs at lower price points, so the market is opening up to more and more drivers as they now have a wider choice of more affordable vehicles. Especially those which we have in stock – which can sometimes be hundreds of makes and models; it’s helping more people get not only a new car, but a new EV, often for the first time.

Salary sacrifice continues to lead the way in delivering new EVs into the marketplace and the price points for lots of Tusker’s vehicles are now affordable for lower-rate taxpayers. As a result, the company is finding that more and more people are making the switch, with no impact being felt of the Government decision to push the deadline for new vehicles to only be EV back to 2035.

Electric vehicles within reach for more drivers

Looking into the future, we expect the trend that we have seen throughout 2023 to continue into 2024. More cars are going to be available for those on lower salaries, from both new and existing manufacturers, as well as electric ranges increasing to compete with traditional petrol or diesel cars to combat any remaining range anxiety.

EVs are definitely more of a mass- market product now, rather than something that only a few people were willing to trial, which we will also continue to see throughout 2024 and beyond.

For organisations that are looking carefully at their fleets, as sustainability continues to be a focus, the salary sacrifice scheme can help meet scope three emissions targets. Tusker’s scheme fully offsets emissions for vehicles and their charging, which is clearly a desirable scenario for all concerned. With a wealth of lifestyle protections in place for employees and employers, risks are mitigated by a company with more than 15 years’ experience and over 170 customer organisations on its books.

Tusker’s scheme continues to offer peace of mind for the driver, with insurance, servicing, maintenance, replacement tyres and breakdown cover all included.

Transition to EV

Don’t let costs get in the way

Mike Nakrani, CEO at VEV

Mike Nakrani, CEO at VEV

There’s a well-founded concern among fleet owners that the cost of electrification is high. It’s a fact that EVs are typically three times the cost of diesel vehicles. And then there’s the charging infrastructure, plus the cost of the power itself.

However, VEV regularly identifies cost savings in our clients’ electrification plans. For example, we find that, in multiple cases, fleets are actually over-estimating their EV charging needs by as much as 20%.

We’ve recently been working with a retail business that’s aiming for full decarbonisation of nearly 4,000 delivery vehicles – and we were able to identify cost-saving strategies across 17 depots of circa £1m in capex in a project that included solar energy generation.

My strongest advice to avoid ‘over-speccing’ and overspend is that effective planning is the key. Planning a fleet’s electrification with real data and careful analysis can save costs across the EV transition. Robust analysis enables a tailored design for the new EV fleet and a transformation plan that is specific to each fleet’s operations.  It is also a valuable opportunity to review and optimise fleet operations.

The devil is in the detail

The critical success factor is to plan around the specific fleet’s requirements, from vehicle types to routes, operational patterns and energy availability. All of these vary depending on operations and location.

The first step to a successful transformation must be to analyse a combination of existing fleet telematics and corresponding energy consumption data at depots. Analysing quality fleet data will guide decision-making on which vehicles are ready to transition first. It will also determine the energy requirement for your fleet, the size and shape of your required charging infrastructure and the optimum charge scheduling to keep your vehicles on the road when and where they need to be.

The next step is to understand your options around the best energy sources and costs. Determining the likely impact on your grid connection upgrade is vital for any successful EV transition.

Upfront analysis and optimising when to charge vehicles can help avoid, or reduce, grid upgrades – one of the most expensive and time-consuming parts of the electrification transition. Charging fleets means a massive increase in power demand, with one supercharger requiring the same power supply as an entire block of flats. From modelling one customer’s charging behaviour, we were able to identify strategies to avoid a costly 2MVA grid upgrade.

To stay competitive, operators must understand that electrification is more than buying new vehicles and chargers. It is also about using multiple sources of data and clever analytics to make informed decisions on feasibility, performance, resilience and cost effectiveness. The trick is to take full advantage of the opportunity by truly optimising your new EV fleet. The transition is like a puzzle of priorities, costs and consequences, where each decision leads to the next and must be considered strategically.

Subscriptions

Deviation from the status quo

Duncan Chumley, CEO, Mycardirect

Duncan Chumley, CEO, Mycardirect

As we stand on the precipice of a new year, the UK automotive industry finds itself at an inflection point. How fleets respond to the technological transformations of 2024 will lay the groundwork for success and failure in the years to come. The winds of change are blowing through the sector, driven by technological advances, regulatory shifts and a collective commitment to sustainability.

One of the defining trends that will continue to shape the industry in 2024 is the accelerating adoption of electric vehicles. While the Government has softened the target to ban the sale of new petrol and diesel cars from 2030 to 2035, fleets are gearing up for a substantial overhaul. The transition to EVs is not merely a regulatory necessity, but a strategic move toward a cleaner and more sustainable future. Fleets that embrace this shift early on will not only contribute to the decarbonisation agenda, but also stand to benefit from reduced operational costs and increased efficiency.

In tandem with the electrification wave, autonomy is set to make strides in 2024. The pursuit of self-driving technology has the potential to revolutionise the very fabric of fleet management. Recently, fully autonomous taxis have passed another legal hurdle in the USA, demonstrating Level 5 autonomy in an urban environment. As the technology matures, fleets must grapple with the intricacies of integrating autonomous vehicles into their operations. To ensure a seamless transition into the new era of mobility and the redefined role of the driver, inventive solutions will be paramount. As outlined in the King’s Speech, we should welcome the Government’s commitment to update and provide clear regulation on how autonomous vehicles will be integrated into our everyday lives.

The way fleets use new connectivity will be another linchpin in the automotive narrative of 2024. The proliferation of IoT (Internet of Things) devices in vehicles opens up a trove of data that can be harnessed for predictive maintenance, real-time monitoring and optimised route planning. Fleets that leverage the power of connectivity will be better positioned to streamline operations, minimise downtime and enhance the overall efficiency of their fleets. The intersection of connectivity and data analytics will be a key battleground where innovative fleet management solutions will emerge.

Amid these transformative changes, the advent of car and van subscription services as a modern alternative, providing businesses with unparalleled flexibility. Mycardirect, the leading provider of vehicle subscription, stands at the forefront, offering companies a hassle-free, all-inclusive solution. This innovative approach allows businesses to adapt swiftly to changing mobility needs without the burden of ownership. By seamlessly integrating subscription services into their fleets, companies can enjoy the benefits of the latest electric and autonomous vehicles – and connectivity features – without increasing the overall operational complexity. Furthermore, vehicle subscription provides businesses the opportunity to experiment with and experience the latest in vehicle technology, fostering a culture of innovation and adaptability.

Thought Leaders

Fleet experts have their say on what trends the industry can expect to see in 2024

Angela Montacute, CEO of Digital Innk

“The adoption of AI must quicken, or else the fleet industry will fall behind. Within the next 12 months, management teams ought to be planning how to integrate AI into business procedures. AI may disrupt the fleet business by facilitating increased efficiencies and transparency among drivers, fleet operators and the supply chain. As a result, it will result in more flexible business models and hasten the adoption of Mobility as a Service.”

Tom Middleditch, head of electric mobility, Europcar

“Probably one of the biggest challenges for 2024 will be how the fleet sector can support long-term net zero goals. The sector has already done a pretty amazing job of helping the UK on its transition; next year the pressure is sure to ramp up to increase access to low- and zero-emission vehicles even further. Operationally there’s still a big job to be done to win drivers’ hearts and minds when it comes to EVs, especially those using commercial vehicles.”

Matthew Lumsden, CEO, Connected Energy

“Fleets will require more EV charging infrastructure. Some fleets are already running into challenges around grid capacity to power these chargers and this problem will only increase in 2024. Not only due to demand for more fast chargers, but also higher-powered charge points for large vans and trucks. Battery energy storage systems (BESS) will help fleets avoid costly grid connection upgrades while also enabling them to get the most out of on-site solar.”

Scott Hamilton-Cooper, chief commercial officer, Ax

“The UK incident management landscape is undergoing a transformation that promises to enhance safety and streamline the post-accident process. One of the most exciting developments is the integration of advanced technologies and data insights. The use of cutting-edge platforms that automate accident reporting and assessment will be more widely utilised, expediting the claims process and ensuring quicker support for those involved.”

Matthew Boswell, MD, Leasys UK

“The fleet landscape is poised for big changes in 2024, including embracing innovation and sustainability and, of course, the rapid adoption of EVs. As we navigate this historic transformation, both businesses and individuals must rely on a mobility provider that can serve as both supplier and consultant. The switch to EVs can be eased by embracing the continental model of contract hire as full-service leasing, something that we expect to rise in popularity.”

Paul McCorkell, director, business rental UK & Ireland, Enterprise

“Employee mobility is evolving into a broader solution that encompasses greater choice and flexibility. Moving ahead, companies need a granular understanding of how, where and why employees are travelling. This needs to accommodate changing work habits driven by hybrid working or by younger employees wanting greener and more varied and flexible mobility options. Employees should feel empowered to shape mobility policies to meet their needs.”