Semiconductor shortages fuelling UK fleet electrification
Ongoing vehicle supply challenges are influencing those decisions. A quarter of UK fleets said this had impacted deliveries, and the majority of those organisations are extending vehicle lifecycles to keep employees mobile. However, more than a third said supply challenges would lead to a faster roll-out of hybrid and electric vehicles.
Shaun Sadlier, head of Arval Mobility Observatory in the UK, said: “This research shines a light on the semiconductor shortage, which has become a growing concern for fleets over the last couple of years and which, even now, may not be resolved for another year or more. “Presumably, in having to wait for vehicle delivery, [fleets] have decided to accelerate movement towards their corporate social responsibility targets by leapfrogging a replacement cycle where they would probably have chosen [a petrol, diesel] or plug-in hybrid and have instead opted to go straight to an electric vehicle, which often have shorter lead times as manufacturers appear to be diverting more of their production to zero-emission vehicles.
Despite the supply constraints, the results suggest operators are optimistic about post-pandemic recovery. More than a quarter said they expect to increase their fleet size over the next three years, typically because their business is due to expand. A fifth of UK respondents are planning to offer company cars to a wider pool of employees, as a perk to retain staff.
Sadlier added: “One central fact is clear: as we emerge from the pandemic, company cars and vans remain core to business growth strategies moving forward.”
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