The decline of diesel and increase in provision of total corporate mobility
The story so far. With only a few weeks into 2018, our recent discussions with large corporates keep coming back to the right fuel mix and how mobility will work.
From the trends we see, it is clear that demand for diesel is continuing to fall across Europe. However, it is not that clear at to the ideal diesel alternative.
In general, petrol vehicles use more fuel and therefore emit more CO2, while hybrid vehicles work well in urban conditions but there is no discernible advantage when used on highways. Electric and hybrid electric vehicles are also gaining traction. However, higher lease costs, charging network coverage and uncertainty over residual values do not make this the obvious choice, yet!
Achieving the right fleet mix of vehicles is essential going forward and your fleet strategy is key. We believe that the issue of total corporate mobility will become increasingly important in the near future. Companies are looking to expand beyond the provision of company cars into total transport and mobility. The issue is that this not a one size fits all solution.
Clearly, the size, make-up and location of your business will all impact your fleet policy. Companies based in cities often with younger, well-educated employees have different lifestyles and providing a vehicle for 365 days of the year might not be the best option. Public transport paid for by the company with access to pool vehicles/car share schemes at certain times may be more appropriate.
However, with companies, based in rural areas, the provision of a traditional company vehicle may still be the most appropriate solution.
There are further considerations. Under the new WLTP procedure, average CO2 values are expected to rise. As a consequence, companies that have included a CO2 limit in their car policy will need to analyse the exact impact of the new CO2 values on the available vehicle list.
Suggested reading: The 10 steps to Fleet Mobility
How is your leasing provider responding to the trends?
Many Leasing companies are talking about Mobility but few are offering a true independent view of the options available. Talk to us and we’ll share our thoughts and insights into how making the right choices now are critical to future fleet costs.