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Petrol cars to make a fleet comeback as diesel demand declines, says survey

Petrol cars to make a fleet comeback as diesel demand declines, says survey

Fleets are increasingly moving towards petrol vehicles with a growing demand for alternatively fuelled vehicles, according to the latest ExpertEye Fleet Industry Review.

Produced in association with Professor Colin Tourick, from University of Buckingham, ExpertEye’s latest review provides insights into the current status and views of the UK fleet marketplace.   

Despite Brexit now a certainty, coupled with the recent election announcement and confirmation of changes to company car benefit-in-kind taxation in the spring Budget, the UK economy is not showing signs of “drastic change”, according to the study.

Nevertheless, based on a survey of more than 200 fleet operators the findings include that more companies are putting petrol-engined cars back onto their fleet lists, or drivers themselves have decided to opt for petrol.  

As a result, respondents expect to see a reduction in diesel in the next two years, with electric, electric range-extended and hybrid engines gaining in popularity. A significant number of them believe that petrol will be making a comeback.  

Almost no fleet operators expected the economy to shift drastically either up or down but they are slightly less optimistic than before.  

However, more than half of respondents expected no change in demand for cars and more than three-quarters expected no change in demand for vans. Of the few who expected demand to decrease, 20% said there would be decreased demand for cars (the highest level since the second half of 2013) and 7% said there would be decreased demand for vans.  

Contract hire remains the predominant form of finance used by businesses, though there has been a steady growth in respondents using finance lease.

Reliability, fleet running costs and fleet safety and risk management remain top of respondents’ concerns as they ponder fleet management decisions they will be making in the next 12 months. The full report is available at www.experteye.com