What Might The Future Hold For Company Car Fleets?

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future of company cars

What Might The Future Hold For Company Car Fleets?

The recent Fleet 200 virtual roundtable from Fleet News threw up some interesting thoughts on the future of the company car.

Primary among them was the increasing role of the electric vehicle. As lockdown and social distancing continues to confine people to home and virtual meetings/working is weaving its way into the fabric of society the number of miles traveled is inevitably reducing. This will alleviate some of the range anxiety company drivers have about electric cars and potentially make them a more attractive alternative to ICE vehicles.

The roundtable suggest a byproduct of this will be a growing demand for smaller cars. Naturally, this could favour electric cars, especially as current emissions regulations mean smaller vehicles are becoming uneconomical to manufacture and are therefore being discontinued [Fiat punto, Opel Karl, Ford Ka+). Paradoxically though, this demand for cleaner air is pushing price-conscious consumers back to older ICE vehicles resulting in a resurgence of older vehicles in grey fleet.

If electrification is a consideration for your fleet then Fleetworx have created an ebook that looks at how to plan for the introduction of EV’s.

There is also a feeling that company car opt-out may increase, to be replaced by rental vehicles or a renewed interest in the pool car.  This expectation is not universal however, as some believe people may not be comfortable using rented or pool vehicles because of hygiene concerns and continue to own a vehicle. There is also the anticipation of drivers who previously shared vehicles or used public transport, possibly in a mobility programme, may want to begin using a personal vehicle again.

Mobility solutions remain an interesting possibility for some respondents but its appeal seems to be hugely influenced by geography and business sector. Mobility appears to make sense for people living and working in an urban environment but could be more challenging for those living outside of main cities. Indeed many of the fleet’s who participated in the panel are finding car ownership is still preferred by their employees.

Employee mobility and finding the right solution for your people is quite a complex task. To understand more about how mobility may work for your business Fleetworx have created this ebook that unlocks the mysteries of mobility.

It is quite likely the reduction in miles traveled due to the societal restrictions of Covid-19 may reduce the short-term need for company cars, resulting in contract extensions being favoured over replacement vehicles. However, as restrictions are lifted the now ingrained need for individuals to be in control of hygiene means the personal space of a company car will in fact make them the preferred mode of transport going forward. So the company car may be taking a bit of a back seat at the moment but new attitudes to hygiene and personal space will see it soon return to the driving seat.

 

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