THERE is considerable concern about vehicle supply and the impact it will have on
growth for the vehicle leasing and rental industry, with vans highlighted as a
particular barrier.
That’s according to findings from the BVRLA’s latest Business
Impact Survey, amid general optimism from the industry about economic
recovery.
Carried out in May, the survey shows that 90% of respondents anticipate the
economy to improve in the next six months, and 70% expect improvements for
the leasing sector. As restrictions are eased across the UK, three-quarters (75%)
of those questioned are also expecting to see increased demand in the rental
sector.
With the industry planning for growth over the next half year and more, 71%
expect to increase their fleet size before the end of 2021. Compared with figures
from the BVRLA’s February survey, there is a significant improvement, as only
54% had expected fleet growth this year.
Despite optimistic responses from those in the industry, concerns remain about restricted vehicle supply inhibiting growth, with the LCV market of particular interest.
More than 90% of responses form this latest survey show that belief in the
current supply of ICE vans was proving a barrier to meeting customer demand;
41% of those said that the issue was extreme. On top of that, 84% of
respondents believe that the supply of vans is getting worse.
BVRLA Chief executive Gerry Keaney said:
“The van parc is growing exponentially at a rate double that of cars, yet the supply of battery electric vans is an acute problem. Although we have seen an increase in the number of makes and models coming to market, there is a particular dearth of vans capable of long ranges or towing.
“Vans play a vital role in the UK economy with one in 10 workers relying on one
to do their job. A special focus on vans is needed if this sector is to achieve parity
with the more developed electric car market and the BVRLA will be making
recommendations to government.”
