Company Car Today

AFP sets out 12-point 2022 State of the Nation forecast

The Association of Fleet Professionals has released its 12-point State of the Nation, looking at the state of the fleet industry in 2022.

The fleet operators’ trade association has picked out the dozen points it feels will shape the next 12 months, covering a wide diversity of topics.

  • Challenges in the new normal – two areas of potential risk are frontline services and delivery industries that have been placed under huge pressure during the pandemic, and drivers that have been furloughed or home-working so have driven fewer miles.
  • Charging infrastructure becomes critical – two key issues being infrastructure for those unable to charge at home and the availability of public charging.
  • EV reimbursement – a move to actual-cost reimbursement as the 5p per mile HMRC figure is low compared to real-world cost.
  • eLCVs to grow – electric light commercials could take off in 2022 like electric cars have in 2021 as more products come to market.
  • Mobility regains momentum – paused by the pandemic, more businesses will look again at a formal mobility strategy.
  • New vehicle delays continue – the semiconductor shortage will continue to create issues in vehicle supply and delivery.
  • Short-term hire supply to become an issue – rental companies’ ability to source vehicles is also under pressure, impacting pricing and availability, especially around vans.
  • Road tolls and future BiK rates – the AFP expects Government clarity on the future of both issues in the near future.
  • City centre traffic – clean air zones will continue to appear, and long-term moves to reduce traffic in city centres should also be monitored.
  • Autonomous vehicles begin to appear – although full autonomy is some way off, the AFP said it is “encouraging” to see the first limited uses of the technology in limited settings.
  • Connected data – The association is “optimistic that 2022 could prove to be a watershed year” for data sharing in usable formats for fleets.
  • Company car numbers to increase – low tax on EVs is fueling a rise in company car numbers, including those that have previously opted out and taken the cash instead. “We believe the tide is very much in the process of turning”, said the AFP.

For more on the AFP’s work, see www.theafp.co.uk.

Plug-ins pass 25% for European sales in November

More than a quarter of new cars registered in November were either electric or plug-in hybrid, according to figures compiled by Jato, with the 26% share comparing with 16% in November 2020 and 6% in November 2019.

The Tesla Model 3 topped the full EV sales ahead of the Renault Zoe and Dacia Spring that isn’t sold in the UK, and all of the top 10 EVs out-sold the top plug-in hybrid, which was the Peugeot 3008, ahead of the Volvo XC40 and Ford Kuga.

Overall, Renaults Clio was top of the European sales chart, with the Dacia Sandero and Peugeot 208 in a market down 18% on November 2020 and 29% on November 2019 as the chip shortage continues to affect new car production and availability.

EVs becoming more ingrained in strong used market

Used electric vehicles were the fastest-selling powertrain on the market in a move described as a positive sign that the powertrain is being “gradually accepted as an integral part of the used market”, although volumes remain small versus petrol or diesel, according to Indicata.

The company’s insight report found that used prices have risen by 28% across the first 11 months of the year, more than any other European country, fueled by sales rising at a faster rate than stock levels due to the problems in new car supply.

“This current market trend of demand exceeding supply looks set to continue into the back end of 2022. Both the wholesale and retail markets have got to get used to prices at this level being the new normal,” said Indicata group sales director Jon Mitchell. “Stock levels show no sign of improving which guarantees prices will remain strong. There are restricted number or part exchanges coming into the market and a vast number of leasing contracts continue to be extended until such time as new car supplies improve.”

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