Businesses have postponed replacing their vehicles as carmakers continue to focus on more profitable retail sales through dealers.
The Arval Mobility Observatory 2022 Barometer found that 83% of fleets have extended the life cycle of current vehicles while 11% have considering adding other manufacturers to our policy in order to source vehicles.
The latest SMMT figures show that UK new car registrations fell by -15.8% to 119,167 units in April.
Supply chain shortages, particularly of semiconductors, continued to constrain the delivery of new vehicles.
April’s decline was driven primarily by a -33.3% decrease in large fleet registrations, with manufacturers continuing to prioritise more profitable retail business.
Shaun Sadlier, head of Arval Mobility Observatory in the UK, said: “This research shines a light on the semiconductor shortage, which has become a growing concern for fleets over the last couple of years and which, even now, may not be resolved for another year or more.”
Sadlier added said 35% of respondents believe that the shortage will speed up electrification.
“Presumably, in having to wait for vehicle delivery, they have decided to accelerate movement towards their Corporate Social Responsibility (CSR) targets by leapfrogging a replacement cycle where they would probably have chosen an ICE or PHEV and have instead opted to go straight to an EV, which often have shorter lead times as manufacturers appear to be diverting more of their production to zero-emission vehicles.
“Finally, 11% of respondents have considered opening up their choice lists, 9% have opted for used vehicles to meet their needs and 3% have examined the possibility of mobility solutions as an alternative. These are all creative solutions that we have seen used effectively by different businesses in different situations over the last year or more.”