UK fleets show optimism: growth expected despite economic challenges

NEW data from the 2024 Arval Mobility Observatory Fleet and Mobility Barometer reveals positive sentiment among UK fleets.

A significant 38% of fleets predict growth in their vehicle numbers over the next three years, a jump from 29% in 2023. This trend suggests resilience despite a broader economic outlook predicting sluggish growth. It also suggests that there remains continuing opportunities for leasing brokers engaged in the business contract hire SME market.

The most recent BVRLA Leasing Outlook survey saw a 7.7% increase year-on-year for BCH (see also panel).

Shaun Sadlier, Head of Arval Mobility Observatory in the UK, sees the findings as a sign of fleets shaking off pandemic effects: “These businesses obviously expect to substantially outperform the wider economy.”

Growth expectations greater for cars, driven by EVs

The Arval analysis shows even greater optimism for car fleets alone, with 43% predicting growth. Larger fleets, particularly those with over 1,000 employees, are fuelling this trend. Sadlier links this to EVs:

“This trend probably illustrates the extent to which larger employers feel there is potential for both cash-takers continuing to return to company cars thanks to low taxation for electric vehicles (EVs), and for considerable growth in salary sacrifice schemes that centre on EVs.”

UK fleets bullish compared with Europe

UK fleets outpace their European counterparts in growth expectations across every category, ranking in the top five most positive of the 30 surveyed countries. Beyond company expansion (cited by 81% of fleets), the report highlights other drivers of fleet growth:

Broker fleet down, but BCH on the rise

While the BVRLA leasing broker fleet shrunk by 2.95% to 390,898 vehicles in 2023, in contrast the market for business contract hire (BCH) for cars grew 9% YoY with the number of new additions increasing by 7% during the same period. Salary sacrifice certainly helped boost this increase. For more on the report, click here.

Employee attraction and retention: 39% of fleets consider company vehicles essential to attracting and retaining talent.
Salary Sacrifice on the rise: 37% of fleets express interest in salary sacrifice arrangements linked to EVs.
Car sharing: 35% see car sharing as a growth area.

Sadlier concludes: “All of these percentages are increases on 2023 and therefore arguably indicate that the fleet is becoming more valuable to businesses.”