What’s the future looking like for fleet management in a post-pandemic world?
The outbreak of Covid-19 impacted our livelihood along with 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 many companies began to allow employees to work from home or required them to temporarily close. 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, the use of company vehicles is starting to boom once more and salary sacrifice cars are still a viable option for many people. With the lifting of lockdown, this has the potential to change the traditional role of fleets within businesses. Whilst some businesses may not be returning to the office at all, 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. While public transport services were reduced in 2020, we are now seeing people avoiding public transport due to fear and uncertainty surrounding Covid-19, meaning more people will travel to the office via personal vehicle or company car. In 2020 across Great Britain, 68% of workers typically travelled to work by car (data retrieved from Transports Statistics Great Britain 2020).
Start electrifying your company vehicles
Ways companies can save money through better fleet management is by reducing emissions. Lower tax rates for electric vehicles were introduced in 2020 by the UK government. This incentive, known as the benefit-in-kind tax, will see company cars registered from April 6th of last year (2020) with 0% tax rate.
This rate also applies to hybrid cars and plug-in hybrids that are capable of 130 miles or more of electric range. However, these rates won’t stick around forever as current plans for the 0% rate are set to increase to 1% by 2021/22 and 2% in 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, meaning dealerships and businesses may have to rethink their current sale and fleet method.
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 and motorways 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 historic role of the salesperson shifts from face-to-face to face-to-screen. Companies are now more likely to consider whether alternative modes of transportation are just as effective as cars, and if they need a full-time fleet or whether flexible ‘car-on-demand’ systems, such as car sharing, subscription services, flexible leasing, and even grey fleet, are just as effective.
Outsourcing fleet management is an effective way of reducing your carbon footprint as a company and allowing time to focus on more important 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.