Why UK fleet industry bosses are tackling new challenges
The fleet industry finds itself at a crossroads. With rapidly changing economic conditions, new legislation and expectations on electric vehicles (EVs), companies are being ultra cautious before making vehicle commitments.
But fleet and leasing companies report demand for different services. Leeds-headquartered AMT Auto offers customers the option to rent, lease, buy or subscribe to vehicles. Purchasing manager Roy Langley says businesses are increasingly looking for professional fleet consultancy services to guide them through current challenges.
“Fleet managers are juggling several priorities, from cost-cutting and insurance hikes to driver training and health and safety compliance. Ongoing legislative changes add to the complexity. Compliance with emissions standards, safety regulations, and tax policies require fleet managers to be constantly on top of the latest developments so they are not left exposed to anything that may affect their bottom line.
“Despite some market uncertainties, fleet demand remains steady, with businesses looking for cost-effective solutions for their vehicle fleets. Many companies are looking at and prioritising whole life costs over just the initial purchase price. Long-term savings on maintenance, fuel, and tax benefits can justify their investment.”
Stanningley-based Nexus Rental has grown rapidly in recent years. It works with an extensive network of rental companies including more than 300 supply partners, 500,000 vehicles and 2,000 vehicle branches offering round-the clock rental booking and support.
James Maden, its director of strategic growth, says he is optimistic for the fleet sector. “Generally, the industry is in a better position than it has been since the pandemic hit in terms of accessing the supply to fit demand. But there are a lot of uncertainties for fleet managers. The key challenge moving forward will be navigating the transition to EVs, for both our corporate customers and our supply chain. From the potential for increased rental costs to the UK’s lacklustre charging infrastructure, there are a lot of uncertainties. For example, there are challenges with access and availability of home charging, particularly for company van drivers.”
Mr Maden believes the zero-emission vehicle (ZEV) mandate looks likely to stay in place. The target is 80 per cent of new cars and 70 per cent of new vans sold in Britain being zero emission by 2030, increasing to 100 per cent by 2035.
“The recent challenges that have impacted residual values could have a knock-on effect to holding costs for EVs,” he says.
Joe Howick is group chief executive at Shipley-headquartered FOD Mobility Group, Europe’s leading provider of ground transport services and technology, offered through its Fleetondemand and GT Suite, which provides instant access to book and manage short-term vehicle hire, flexible mid-term hire, EV hire, taxis and pool fleet vehicles.
He says that the shift toward sustainability is significant, but it’s revealing complex operational challenges. “For example, with electric vans, the 4.25-tonne derogation licensing requirement affects driver licensing requirements and vehicle deployment flexibility. Organisations are under pressure to reduce emissions, but they need practical solutions that don’t compromise operational efficiency. This is driving demand for mixed fleet management capabilities that can handle both conventional and electric vehicles through a single platform.”
He sees several critical challenges for fleet managers, but most can be overcome through technology solutions. “Managers need granular insight into every aspect of fleet expenditure.
Administrative burden continues to be significant. Fleet managers are looking to automate processes like damage management, fine processing, and invoice reconciliation. Even seemingly simple tasks like cost centre management can become complex when dealing with multiple departments and locations, if they don’t have suitable technology and processes in place.
“Policy compliance is another critical issue, particularly when managing vehicle bookings across different departments and locations. Organisations need solutions that can enforce company policies while maintaining operational flexibility.”
FOD has seen success with approaches like automated validation systems that require line manager approval for bookings, striking that crucial balance between control and efficiency.
One other key challenge, he says, is vehicle downtime management – rapid repairs and minimal service disruption are critical to their operations. Leveraging telematics and data-driven insights can also help improve productivity, reduce costs and ensure compliance with evolving regulations.
John Petch Transport, a bulk haulage specialist based at Eggborough, near Selby, saw a 10 per cent boost in profitability after deploying technology by Webfleet with an integrated camera system.
Beverley Wise, regional director for Webfleet, says: “By gaining better oversight of its HGVs, the company cut insurance claims costs by five per cent, reduced unnecessary overtime expenses by more than £5,000 annually and improved driving standards, leading to lower fuel consumption and CO2 emissions.
“Fleet management platforms such as Webfleet provide businesses with the visibility they need to optimise their operations. By tracking vehicle locations in real-time, monitoring driver behaviour, streamlining business workflow and offering maintenance and wider fleet insights, they can help businesses reduce downtime, improve fuel efficiency and enhance road safety.
“Safety remains a top priority for fleet managers, and fleet management technology is also playing a vital role in controlling risk. AI-powered dashcams, such as Webfleet’s CAM 50, provide instant feedback on risky behaviours, such as mobile phone use. This not only helps reduce accidents, it contributes to lower insurance premiums.”
This article originally appeared in Business Insider Yorkshire