What’s the future of fleet management in a post-pandemic world?

Covid-19 has caused changes in every industry, but how does the future of fleet management look?

The outbreak of Covid-19 impacted our livelihood and hundreds of businesses, putting several industries on hold for months. With the ‘stay at home’ message in place, the need to commute to and from work diminished. As a result of the pandemic, the fleet industry saw a significant drop as fewer people travelled for work.

However, as life is starting to resume, company vehicles are beginning to boom once more. Schemes such as salary sacrifice cars are still a viable option for many people. The lifting of lockdown has the potential to change the traditional role of fleets within businesses. While some companies may not be returning to the office, others may adopt a half-work-from-home, half-work-in-office model.

In addition to workplace changes, there has been a decrease in the use of public transport. It is likely more people will choose to travel to the office via personal vehicle or company car, as people try to avoid public transport due to fear and uncertainty surrounding Covid-19. In 2020 across Great Britain, 68% of workers typically travelled to work by car (data retrieved from Transports Statistics Great Britain 2020).

Planning for the future – electrifying your company vehicles

One way companies can save money through better fleet management is by reducing emissions. In 2020, the UK government introduced lower tax rates for electric vehicles. This incentive, known as the benefit-in-kind tax; will see company cars registered from April 6th 2020 with a 0% tax rate.

This rate also applies to hybrid cars and plug-in hybrids capable of 130 miles or more of electric range. However, these rates won’t stick around forever. Current plans for the 0% rate are set to increase to 1% by 2021/22 and 2% by 2022/23. Although, the government says they “remain under review”.

This falls in line with the 2030 ban on the sale of new petrol and diesel cars and vans. Dealerships and businesses may have to rethink their current sale and fleet methods to be more aligned with future trends.

How can companies adapt their fleet management strategy?

Since the first lockdown in March 2020, we saw a significant reduction in carbon emission as the roads grew vacant. Leaders in business and government are keen to seize this opportunity to boost their businesses’ and countries’ climate targets. Outsourcing company fleets would be a crucial step towards these efforts.

Whilst the fleet sector accounted for more than half (53%) of new car sales in 2019, there is expected to be a rise in the number of EVs on the road post-lockdown.

Another shift we’ve seen in the past year is the number of jobs requiring cars as the historical role of the salesperson shifts from face-to-face to face-to-screen. As a result, companies are now considering whether alternative modes of transportation are as effective as cars.

Alternatively, a full-time fleet or flexible ‘car-on-demand’ systems, such as car sharing, subscription services, flexible leasing, and even grey fleet, are just as effective. It is yet to be seen how this will manifest in the future, both short and long-term.

What changes will you make to your fleet?

Understanding the future of fleet management will be difficult for organisations, which is why subject expertise is essential.

Outsourcing fleet management effectively reduces your carbon footprint as a company and allows time to focus on more critical processes within your organisation.

At EVP Solutions, we provide expert advice and management services for fleet consultancy, check out our case studies or get in touch with a member of our team on 0161 973 8579 to find out more about our services.