More than half of UK fleets are now moving to alternative fuels

17 July 2017

More than half of UK fleets are now moving to alternative fuels

17 July 2017

Arval’s annual CVO (Corporate Vehicle Observatory) Barometer shows that 56% of UK fleets now operate at least one alternative fuel to diesel and petrol, or will be doing so within the next three years. This figure has increased by a further 6% since 2015.

The choice of alternative fuel, however, varies greatly between fleets with 22% currently offering traditional hybrids (and 27% set to introduce in three years), 15% offering plug-in hybrids (with 22% planning to), 10% offering electric vehicles (and 22% in the pipeline), and only 2% offering hydrogen (but 18% set to in three years).

The research covers almost 4,000 UK fleets, and shows the promising trend that fleets are succeeding in working out how to incorporate alternative fuels into their choice lists. Arval previously highlighted how fleets were struggling to integrate plug-in hybrids into their choice lists due to the difficulty in calculating TCO (total cost of ownership) and CO2 output, which vary greatly depending on how the vehicle is driven.

Arval’s CVO head Shaun Sadlier said: ‘It is obvious that the twin dominance of petrol and diesel that has characterised the company car and van sector for many, many years is being challenged by credible alternatives.

‘Modern fleets are moving towards a portfolio of drivetrain technologies and are rapidly becoming conversant in which choices work most effectively in different types of applications.

‘We are seeing both a push and a pull effect in action. On one hand, plug-in hybrids and pure electric vehicles have become much more usable, well-priced and appealing products in recent years.

‘On the other, we have seen pressure on diesel because of concerns on air quality,’ including restrictions and mooted bans on diesels (and older petrols) from entering inner city areas. These include restrictions in London and Paris, and proposed bans in cities such as Stuttgart and Munich.