Arval UK saw a 24% rise in vehicle orders in 2021 compared to the previous year, it has announced.

The year also saw it consolidate its position as the third largest contract hire company in the UK with a risk fleet of 179,022, up 0.9% on 2020, according to the FN50 research.

Paul Hyne, commercial director at Arval UK, said: “Our total orders increased 24% during the year.

"This is partially a reflection of the way in which Covid affected orders in 2021, but also illustrates both Arval UK’s current level of growth and the fleet sector’s overall degree of resilience in the face of the challenges it has experienced in the past couple of years.”

The company also saw the composition of its fleet change in line with industry trends: internal combustion-engined vehicle deliveries dropped 37% in 2021, battery electric vehicles (BEVs) rose 112%, hybrid electric vehicles (HEVs) by 151%, and plug-in hybrid electric vehicles (PHEVs) increased by 50%.

Hyne said the electrification across its entire UK fleet was further highlighted by the order bank in 2021.

He added: “We saw car orders for ICE drop by 22% while BEV increased 135%, HEV by 153% and PHEV by 78%.

“This shows that electrification across our entire UK fleet is a rapidly developing trend.”

In December, Hyne told Fleet News it expects at least 34% of its total risk fleet will be BEV and 21% PHEV or HEV by the end of 2025.

The company also said that despite vehicle supply issues affecting the motor industry, deliveries of new cars to drivers by Arval UK fell by just 2% in 2021 compared to the previous year.

Hyne said: “Since supply difficulties began to bite due to the pandemic, we have been talking to customers about the best ways to ensure that they still get hold of the vehicles they need, despite the constrictions that have been widely experienced.

“Our advice has not been radical – we work closely with manufacturers, dealers and our customers and help them to plan ahead, order as early as possible, look at alternatives when the models wanted are unavailable and redeploy vehicles.

“Despite the fact that 2021 was itself a Covid-affected year, we’ve seen a fall of just 2% in deliveries within the current supply situation as something of a testament to the strength of our account management, as well as the trust placed in us by the fleets with which we work.

“Deliveries are still being made, although the lead times are longer than we’ve seen previously.”