The Association of Fleet Professionals (AFP) says fleets face the double challenge of electrification and the impact of the recession in 2023.

The trade and training body believes cost control and carbon savings will be key, as businesses look to fleet managers to deliver more value than ever.

AFP chair Paul Hollick said: “Next year is going to be a tough one, no question, and there will be considerable pressure on fleet managers to produce results that help their employers make progress on their EV (electric vehicle) agenda while also controlling costs.

“Fuel expenditure is going to help drive this line of strategy, alongside environmental concerns.”

He continued: “Petrol and diesel prices remain stubbornly high, and the impending fuel duty increase will further concentrate minds.

“Even given that electricity prices could increase in the spring when the Government rethinks its price cap, electrification is going to look more attractive than ever in financial terms.”

The AFP’s aim as an organisation is to disseminate as much information about its members’ EV experiences as possible, says Hollick.

“Currently, several of the largest fleets within the AFP are deploying electric cars and vans in large numbers, and we are sharing their learnings as far and wide as possible through a variety of channels,” he added.

A key challenge given these objectives, according to the AFP, is vehicle supply is likely to remain poor for the whole of 2023, which would inevitably affect the rate of electrification.

Indeed, the British Vehicle Rental and Leasing Association (BVRLA) says that with leasing company order books bulging and unfulfilled deliveries, more than half (58%) of its members are resigned to the fact that longer lead times are now standard. 

Hollick said: “Different manufacturers are making different noises about whether production issues are likely to improve next year but the bottom line remains that there is a massive backlog to clear before the situation has any chance of improving. Electrification can only happen at the rate of supply.

“Of course, this creates a knock-on effect with many company vehicles now being operated well beyond their originally planned termination point, something that will also place considerable demands on fleet managers when it comes to keeping these cars and vans in compliant, roadworthy condition.”

Vehicle pricing is also a major concern for leasing companies, with both acquisition costs and borrowing rates rising between order and delivery, according to the BVRLA.

In terms of AFP activity, Hollick says that the organisation would be issuing its new Tax and Legislation Manifesto in early 2023, designed to set out its thinking in these key areas.

“It’s positive that the recent fiscal statement provided much increased certainty over benefit-in-kind taxation and also that we’ve seen some action over AER, but we’d like to keep the dialogue going with Government to achieve further improvements in the latter as well as campaigning in a number of related areas,” he explained.

The document is in its final stages of preparation and will be published soon.

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