New Fleet Vehicle Registrations Fall In 2022
Fleet vehicle and company car registrations fell by 7.9% in 2022, according to the latest figures.
The total number of registrations was 1.61 million and the fall in registrations comes despite demand still being quite high, with the impact of the global semiconductor shortage still having an effect throughout the last year.
In fact, the figures mean that the market sits 700,000 below the total number of registrations in 2019, the last year before the pandemic. And the market actually rallied in the second half of 2022 but suffered because of the slow winter and spring periods.
What’s The Big Picture With New Fleet Vehicles?
There’s a significant difference between larger and smaller fleet registrations in the current market.
Part of that is because vehicle manufacturers have prioritised higher margin cars and vehicles for production which has seen the fleet market drop by 7.5%.
But it’s a different picture in the private vehicle sector, with new registrations rising by 2% in 2022.
Part of that is down to the complex technology and specific requirements of many commercial vehicles, whether it’s vans, HGVs, or other fleet vehicles.
The issue is that demand is outstripping supply significantly, which is then driving up prices AND lead times, meaning that fleets are struggling to get hold of the vehicles they need when they need them.
However, there is positive news when it comes to low-emission vehicles…
Because new EV registrations topped new diesel vehicle registrations for the first time.
It will come as no surprise to many as the impact of the move away from manufacturing new internal combustion engine (ICE) vehicles in 2030 grows closer.
What Does It Mean for Fleet Owners?
Going electric is a reality for all vehicle owners at some point. And that also means a big consideration for fleet owners – when do you make the switch?
That issue has been exacerbated by the long lead times and difficulty in procuring new electric commercial vehicles, leading many to opt for more attainable options…
Whether that’s new ICE vehicles, sticking with older models and adding significant miles to the clock, or looking to the nearly-new market.
The emissions issue isn’t going to go away, though, and the reality is that businesses and fleet owners will come to a crossroads with their electrification plans at some point.
But the increase in energy bills has brought another issue to the forefront, with many businesses facing the reality of the increasing cost of living, and that includes charging EVs.
Not only that, but the introduction of more low emission zones, and the expansion of zones such as the one in London, have added costs to daily driving routes for many fleets.
The current trend still shows that demand is far outstripping supply, which suggests that the future for fleets should be positive as the semiconductor shortage eases.
Where are you in your vehicle replacement cycle? Have you gone electric yet? Let us know in the comments below…
