Fleet Market PESTEL

Fleet Market PESTEL (Political, Economic, Social, Technological, Legal and Environmental) analysis is a framework for businesses. This tool helps to identify the various external factors that might affect a business and specifically the running of the fleet. The goal is to figure out just how the different factors influence business performance.

We look at how this is currently positioned for the Fleet Management companies in the UK although the implications have a similar impact elsewhere within Europe and beyond.


Pressure on government to upgrade infrastructure for both road and rail users due to increased congestion

Uncertainty around Brexit causing some major investments to be delayed or postponed

China, US and EU tariff discussions potentially have a significant impact on the cost of sourcing vehicles in different territories.

New leadership of the Labour party and Liberal Democrat leadership to be decided.

Election in the US in November 2020


Impact of Covid-19 on global economic growth

Impact of Covid-19 on global supply chains

Increasing tax burden for company car drivers leading to the increased attractiveness of the cash allowance alternative.

Low interest rate environment adding to the attraction of personal leasing through PCH and PCP

Low interest rates leading to consolidation of fleet providers through attractive returns from asset backed funding

Reducing vehicle volumes forcing Fleet Management companies to focus on profitability

Freeze on fuel duty helping with vehicle running costs


Ownership culture being challenged by Generation Y leading to reduced demand for passenger cars.  Subscription services becoming a widely accepted usage model within a variety of settings.

Company car drivers expecting the Amazon shopping experience

Increased focus from many regarding the environmental impact of travel


New technology paving the way for an electric future with its associated impact on infrastructure requirements at a local and national level.

Autonomous driving leading a number of manufacturers to re-think their product development strategy from products to services.

The age of mobile facilitates the rise of mobility alternatives such as Uber, Lyft and Zipcar.

Increasing adoption of open source arrangements between transport options reduce the need for company vehicles.

Increasing need to digitise the company car experience to reduce the cost to serve and maintain or enhance profitability.

Connected car technologies offer increased opportunities within the big data and artificial intelligence space.


WLTP legislation impacting on short term demand for vehicles.

European legislation regarding new vehicle emissions forcing manufacturers to invest in using new technologies to reduce emissions.

Clean air zone legislation and legal challenges to enforce action


Post Covid-19 demonstration of impact of traffic on local environments

Pressure on government to reduce carbon emissions of which road transport provides a significant proportion

Local air pollution forcing many local councils to think about introducing clean air zones to avoid significant penalties.

To see the impact and breadth of the changes follow this link:  https://www.bvrla.co.uk/resource/CAZmap.html

Pedestrianisation of inner cities leading to alternative transport modes such as Santander Bikes in London and the rise of the e-scooter offering from Lime.

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