New Fleet Vehicle Registrations Rise By 38% In April
The latest figures from the government have revealed that new fleet vehicle registrations rose by 38% in April 2023.
It’s great news for the sector as confidence returns and the supply issues that have plagued fleets and businesses in recent months (and years) abate.
It presents a positive picture for the future of the UK’s new vehicle sector after a difficult couple of years with component shortages, the pandemic, and Brexit all contributing to a shortage in the availability of new vehicles.
What Does It Mean For Fleets?
While it’s too early to read anything into the long-term ramifications, it is a step in the right direction for the UK vehicle market and it does give an indication of where we’re heading.
Given the fact that replacement cycles are usually fixed in place, the disruption to the market has meant that many fleet owners have had to deal with significant lead times for new vehicles, which manufacturers have been playing catch-up with.
A significant portion of the new vehicles registered were battery electric vehicles as drivers and fleets turn to electric vehicles ahead of the phasing out of internal combustion engine vehicles in 2030.
What Is The Situation For Fleets?
Car industry experts have stated that the UK needs to install ‘millions’ more charging points for electric vehicles before electric vehicles become a viable option for all fleets and businesses (as well as personal owners).
As of now, the UK has 23,800 public access charging points, including 4,450 rapid devices, and the rollout of a £1.3 billion investment scheme has been announced.
But as we move closer to the final new internal combustion engine (ICE) vehicles being produced, the EV market is on an upward trajectory.
The semiconductor shortage has delayed the arrival of new vehicles thanks to a lack of availability, but in a way, that could mean that many fleet owners make the jump to electric sooner…
That’s because replacement cycles are being extended and short-term solutions are being taken – whether that’s extending the life of current vehicles or looking to second-hand vehicles over a shorter period.
That way, it buys time before deciding whether to switch over in the next year or two.
Many fleets have already made the decision to switch to EVs and for those that haven’t, the thought isn’t far away from their minds.
The fact is that the UK has been in the top 3 largest European markets for new vehicle registrations over the last decade, as well as in the top two for plug-in EVs and battery EVs.
The latest figures are positive news for the fleet and business market as it had previously been lagging behind the private vehicle market. News like this tends to have a positive knock-on effect, with more fleet owners gaining confidence in the market as it grows.
Have you recently purchased new vehicles for your fleet? Have you made the switch to EVs already? Let us know in the comments below.
