Almost a third of UK companies expect fleet growth

Almost a third of companies (29%) expect to see growth in the number of vehicles they operate during the next three years, according to the 2023 Arval Mobility Observatory Barometer.

The overwhelming reason cited by decision makers predicting an increase is that their company is expanding (mentioned by 76%) but human resource-related needs (28%) and plans to offer vehicles to employees under salary sacrifice schemes (25%) are also important factors.

Shaun Sadlier, Head of Arval Mobility Observatory in the UK, said: “While slightly down on previous years, the fact that almost a third of UK fleets are expecting growth in car and van numbers over the next three years feels quite significant. Overall, just 5% of those surveyed are forecasting that fleet sizes will fall, which is less than in 2022’s research findings, and considering all that the fleet sector has had to handle in recent years – from the pandemic to production shortages – this underlines its resilience and core position in business transport.”

He pointed out that there were, however, notable variances in growth rate forecasts when it came to UK businesses of different sizes.

“There is greater optimism among smaller companies, our research shows. While 16% of organisations with more than 1,000 employees predict growth, 26% of those with fewer than 10 employees expect an increase in their fleet size.”

Shaun said that further positivity could be seen in the research’s international comparison, where the UK’s growth forecast of 29% of companies was higher than both the European average of 23% and the global average of 27%.

“Looking at specific reasons why UK fleets expect to see growth - such as expanding or planning new activities, employee attraction and retention, salary sacrifice arrangements and car sharing - it is clear that predictions of higher fleet numbers are being prompted by an ever wider range of factors.

“Also, although it is not explicitly stated as a reason, the continued favourable tax benefits on electric vehicles is almost certainly a strong underlying reason, fuelling these increases through company car and salary sacrifice arrangements.”

To discover more about the Arval Mobility Observatory and the 2023 Barometer findings, visit: bnpp.lk/growth-2023.