2019 UK FLEET BAROMETER - Arval
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2019 UK FLEET BAROMETER
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CONTENTS 1 FLEET PROFILE 5
2 CORPORATE MOBILITY 7
ARVAL MOBILITY OBSERVATORY
Arval Mobility Observatory is the new name for CVO
FLEET CHALLENGES FOR THE
3 NEXT FIVE YEARS
(Corporate Vehicle Observatory) - our specialist research
channel that is now widely recognised as one of the most
informative pieces of work carried out in the company 12
vehicle and mobility sector. The research conducted this year
asked a wide range of questions and dug deep into the latest
4 FUEL MIX
vehicle trends in the UK and across Europe.
15
We carried out over 3,900 in-depth interviews with key
decision makers in businesses across a wide range of
sectors. The people we spoke to were responsible for
DIESEL DEBATE / WLTP / 19
5 CLEAN AIR ZONES
company vehicles, ranging from just one company vehicle to
fleets in the thousands, giving us a broad insight into what is
happening on the ground in the industry.
6 EMPLOYEE MOBILITY 29
7 GOVERNMENT FOCUS 33
8 ROAD SAFETY 37
ARVAL MOBILITY OBSERVATORY | JUNE 2019 2
METHODOLOGY
DATA COLLECTION TARGET SAMPLE DURATION OF
METHOD INTERVIEW
CATI System Fleet managers in 3,930 interviews including 10 minutes
(Computer Assisted companies across a range 3,613 through Europe on average
Telephone Interviewing) of industries using at least 1 317 out of Europe
corporate vehicle
3 ARVAL MOBILITY OBSERVATORY | JUNE 2019PICTOGRAMS
COMPANY SIZE
Less than 10 10 to 99 100 to 999 1,000 +
employees employees employees employees
ARVAL MOBILITY OBSERVATORY | JUNE 2019 4FLEET PROFILE
1
5 ARVAL MOBILITY OBSERVATORY | JUNE 2019NUMBER OF VEHICLES IN FLEET
TOTAL
10%
38%
29%
58% 64%
98%
33%
50%
27%
34%
28%
10%
12%
5% 2% 2%
0 to 10 vehicles 10 to 99 vehicles 100 to 499 vehicles 500+ vehicles
ARVAL MOBILITY OBSERVATORY | JUNE 2019 6CORPORATE
2 MOBILITY
7 ARVAL MOBILITY OBSERVATORY | JUNE 2019CORPORATE MOBILITY SOLUTIONS
“
There is a lot of discussion in corporate circles about mobility solutions at the moment and our research shows that interest is high.
As a provider, we believe that there is considerable potential for these products.
What is clear above all, though, is that the company car looks set to remain the core transport method for the foreseeable future.
While decision makers and employees in organisations are interested in mobility solutions, it appears that the vast majority see
them as supplementing or being a partial alternative to the traditional fleet.
We believe the reasons for this are simple. Some of them are revealed in our research by showing how much employees value
having a company car and the benefits it brings. The other is that when a typical multi-stop journey is undertaken, a car is the only
practical option.
A mixed provision model is one that we have been saying for some time is the most likely to develop in the majority of businesses,
where a range of mobility solutions are used alongside company cars with employees using the most appropriate form of transport
for each journey.
“
Our belief is that, over the next few years, as more and more fleet managers become mobility managers, one of the most interesting
developments will be the process that businesses undergo in learning how to use mobility options in the most effective manner.
Shaun Sadlier, Head of Arval Mobility Observatory in the UK
ARVAL MOBILITY OBSERVATORY | JUNE 2019 8PERCENTAGE OF COMPANIES READY TO GIVE
UP ALL OR SOME OF THEIR COMPANY CARS FOR
ALTERNATIVE MOBILITY SOLUTIONS
TOTAL
CAR SHARING 7% 3% 7% 8% 14%
RIDE SHARING 9% 8% 9% 10% 10%
MOBILITY
8% 6% 9% 7% 13%
BUDGET
PRIVATE LEASE 11% 8% 7% 10% 20%
MID-TERM
7% 2% 4% 6% 19%
RENTAL
9 ARVAL MOBILITY OBSERVATORY | JUNE 2019WHICH MOBILITY SOLUTIONS ARE COMPANIES
CONSIDERING IN THE NEXT THREE YEARS
TOTAL
CAR SHARING 31% 10% 24% 41% 57%
RIDE SHARING 45% 22% 51% 55% 65%
MOBILITY
21% 13% 22% 23% 32%
BUDGET
PRIVATE LEASE 23% 15% 14% 20% 49%
MID-TERM
22% 11% 21% 21% 45%
RENTAL
ARVAL MOBILITY OBSERVATORY | JUNE 2019 10REASONS DRIVERS STAY WITH A COMPANY CAR
INSTEAD OF ALTERNATIVE MOBILITY SOLUTION
TOTAL
21%
32% 32% 37% 33%
21%
8% 6% 4%
8%
14% 14%
16% 28%
16%
13% 11%
10%
9%
11%
22% 18%
14% 11% 10%
Not having to finance No risk of ownership: Ease of motoring; all
their own vehicle e.g. residual value services provided by
the company
Delivery of a new car
every 3 or 4 years Other
11 ARVAL MOBILITY OBSERVATORY | JUNE 2019FLEET CHALLENGES
3 FOR THE NEXT
FIVE YEARS
ARVAL MOBILITY OBSERVATORY | JUNE 2019 12FLEET CHALLENGES FOR NEXT FIVE YEARS
“
The breadth of issues mentioned in response to this question shows that fleet and mobility managers are facing some very difficult
challenges over the next few years.
Probably the most interesting aspect is that the majority of these issues are linked to external regulatory and policy factors that
have an impact on fleets, rather than being practical issues.
Some of these, such as Clean Air Zones, are generally supported by fleets who are well aware of the need to make their transport
activities as environmentally responsible as possible. However, the fact that 19% of fleets believe Government policy is unclear and
that large numbers mention both vehicle and personal taxation is certainly frustrating.
Shaun added that he was unsurprised that the issue of road infrastructure causing congestion had topped the list of challenges.
When we talk to fleet and mobility managers, there is a general level of concern, not really over the building of new roads, although
these are needed in some places, but at the condition of existing ones and the impression that they are not being used to their
maximum efficiency.
He also said that fleet recognition of the challenges arising from the switch to wider fuel diversity, especially widespread use of
electric vehicles (EV), was understandable.
Cars and vans have been almost exclusively powered by combustion engines for more than a century and a fundamental shift to
having a relatively high EV penetration into fleets definitely represents a change.
However, our experience to date is that many of the factors that are perceived as obstacles can be overcome relatively easily with
“
the right approach, and we are supporting many businesses through this transition both in an advisory and practical manner.
Generally, fleets that have made the switch to EVs are very positive about the experience.
Shaun Sadlier, Head of Arval Mobility Observatory in the UK
13 ARVAL MOBILITY OBSERVATORY | JUNE 2019MAIN CHALLENGES EXPECTED IN TERMS OF FLEET
MANAGEMENT IN NEXT FIVE YEARS
LACK OF ROAD INFRASTRUCTURE CAUSING 49%
INCREASED CONGESTION
INCREASED VEHICLE TAXATION 30%
UNCLEAR GOVERNMENT POLICY TOWARDS
19%
TRANSPORT
IMPLEMENTATION OF ALTERNATIVE FUEL 19%
POLICIES
INCREASED DRIVER PERSONAL TAXATION 16%
INTRODUCTION OF MORE CLEAN AIR ZONES 16%
ARVAL MOBILITY OBSERVATORY | JUNE 2019 14FUEL MIX
4
15 ARVAL MOBILITY OBSERVATORY | JUNE 2019FUEL MIX
“
The fact that larger organisations are leading the way in the adoption of newer fuel options is unsurprising for a number of reasons.
Many have corporate social responsibility targets to meet and a more structured approach to their fleet, so tend to incorporate new
developments into their fleet policies as a matter of course in a methodical fashion.
Our view is that this is happening simply because these businesses have fewer resources available to take time to understand the
advantages of EVs, for example.
Bearing in mind that a substantial part of the company car parc is operated by fleets at the smaller end of the spectrum, it perhaps
indicates that special efforts need to be made across the fleet sector to educate them about the benefits of these newer vehicles.
Shaun added that it was pleasing to see that UK fleets were playing such an important part in the adoption of hybrids and electric
vehicles across Europe.
“
The UK fleet sector is probably the most developed in Europe and we do tend to be a pioneer in new areas. The shift to a more
diverse energy mix is an important development and the work that is being done here is often subsequently being adopted by Arval
in other countries.
Shaun Sadlier, Head of Arval Mobility Observatory in the UK
ARVAL MOBILITY OBSERVATORY | JUNE 2019 16WHICH ALTERNATIVE FUELS HAVE COMPANIES
IMPLEMENTED OR PLAN TO DO SO IN THE
NEXT THREE YEARS
TOTAL
AT LEAST ONE 34% 5% 22% 46% 78%
TECHNOLOGY
HYBRID 25% 3% 19% 26% 68%
PLUG-IN
22% 3% 13% 30% 54%
HYBRID
ELECTRIC 16% 3% 11% 20% 39%
VEHICLE
17 ARVAL MOBILITY OBSERVATORY | JUNE 2019COMPANIES THAT HAVE IMPLEMENTED 4 23%
ALTERNATIVE FUEL VEHICLES OR PLAN
TO DO SO IN THE NEXT THREE YEARS 5 23%
6 22%
21% 7 20%
8 20%
9 19%
44% 10 8%
34%
28% 11 6%
2 1 3 12 4%
13 4%
ARVAL MOBILITY OBSERVATORY | JUNE 2019 18DIESEL DEBATE /
5 WLTP / CLEAN AIR
ZONES
19 ARVAL MOBILITY OBSERVATORY | JUNE 2019THE DIESEL DEBATE
“
RDE2 diesels are starting to become available and some of them are comparable with petrol on NOX emissions while also offering
better CO2 output and fuel economy.
However, it appears that diesel has become so inherently unpopular as the result of recent emissions controversies that there will
be no large scale resurgence in its popularity, despite this development.
Against this backdrop, it is important to note that around half of fleets are planning to continue to operate diesel cars, recognising
their suitability in certain situations.
Shaun added that it was also noteworthy that businesses planning to replace their diesel vehicles are more often intending to
switch to alternative fuels rather than petrol.
Roughly six times as many fleets will be replacing their diesels with hybrids or EVs as with petrol, and this should give a strong
push to alternative fuel adoption over the next few years. Certainly, we see many fleets swapping their diesels for hybrids.
“
Our position is very much that the fleet of the future will use a diverse range of fuels, with the emphasis being placed on matching
the needs of the driver to the right vehicle, and we are doing a lot of work in helping fleets start to make these decisions.
Shaun Sadlier, Head of Arval Mobility Observatory in the UK
ARVAL MOBILITY OBSERVATORY | JUNE 2019 20IF CAR MAKERS PRODUCED DIESEL VEHICLES WITH
NOX AND FINE PARTICLE EMISSIONS EQUAL TO
PETROL CARS, WHAT WOULD COMPANIES DO?
DON’T KNOW 16%
CONTINUE THEIR POLICY OF NOT BUYING DIESEL 7%
INCREASE THEIR SHARE OF DIESEL CARS 5%
CONTINUE TO BUY DIESEL CARS 44%
CONTINUE TO REDUCE THE SHARE OF DIESEL CARS 29%
In the case of the question above, how would your company replace diesel cars?
WITH PETROL 4%
WITH ALTERNATIVE FUELS 22%
WON’T CHANGE DIESEL SHARE 49%
CONTINUE NOT TO BUY DIESEL 7%
DON’T KNOW 16%
21 ARVAL MOBILITY OBSERVATORY | JUNE 2019WLTP IMPACT
“
Now that WLTP figures are starting to become the norm across fleets, we are seeing how businesses are handling their impact in a
real world manner.
The fact is that while the majority of fleets are not planning changes, a significant minority will be redrawing their choice lists and
we are already supporting quite a large number of businesses through this process.
The calculations and the knowledge needed to do this successfully are quite involved and even some large organisations with good
internal fleet resources need to look to external consultants to be able to handle the challenge successfully.
Shaun added that it was unsurprising the research showed that larger employers were making more changes than their smaller
counterparts as a result of WLTP.
These are organisations that, because of their size, will tend to have a much more structured approach to their company car
operations and the impact of WLTP will be clearer, especially when it comes to drawing up choice lists.
The ideal outcome for fleets working to accommodate WLTP is to be able to offer a comparable model to each employee but without
any kind of taxation penalty. Looking at options with lower emissions, especially alternative fuels, is the obvious route. Certainly,
several customers with whom we have been working are now introducing vehicles that perform better under the new test, including
hybrids and EVs.
Our general finding is that, in most cases, new choice lists can be created that resolve most of the issues raised by the switch to
“
WLTP and it is helping some fleets move more quickly towards the wider fuel diversity we expect to see develop over the next few
years.
Shaun Sadlier, Head of Arval Mobility Observatory in the UK
ARVAL MOBILITY OBSERVATORY | JUNE 2019 22WILL THE WLTP TEST INTRODUCTION IMPACT
ON YOUR FLEET POLICY
TOTAL
ALREADY OR
EXPECTED 47% 39% 41% 49% 61%
YES, ALREADY 20% 14% 11% 18% 42%
ALREADY OR
EXPECTED 47% 36% 42% 51% 67%
YES, ALREADY 21% 13% 12% 22% 40%
23 ARVAL MOBILITY OBSERVATORY | JUNE 2019CHANGES ANTICIPATED BY COMPANIES DUE TO
WLTP TEST
TOTAL
LOWER THE LEVEL OR 4% 2% 4% 2% 11%
CATEGORY OF CARS
CHOOSE CARS WITH 12% 8% 6% 15% 19%
LOWER EMISSIONS
CHOOSE MODELS WITH
6% 4% 1% 7% 11%
LOWER FINANCIAL IMPACT
CHOOSE ALTERNATIVE 7% 2% 1% 14% 13%
FUELS
DO NOT EXPECT TO
85% 89% 94% 79% 78%
CHANGE CAR LEVEL
ARVAL MOBILITY OBSERVATORY | JUNE 2019 24CHANGES ANTICIPATED IN CAR POLICY IN CO2
EMISSIONS LEVELS DUE TO WLTP TEST INTRODUCTION
YES, MAXIMUM CO2 LEVELS WILL INCREASE
TOTAL
10% 7% 6% 7% 22%
25 ARVAL MOBILITY OBSERVATORY | JUNE 2019CLEAN AIR ZONES AND TOLL ROADS
“
There has been quite a lot of debate around the likely impact of Clean Air Zones and the Ultra Low Emissions Zone, with some
criticism that they don’t go far enough in enforcing low emissions standards.
However, this research indicates that they are likely to change the behaviour of a relatively large number of businesses, whether
that means operating greener vehicles or changing their transport options within the zone.
He added that the attitudes that fleets have revealed towards toll roads were also interesting.
This shows that more than half of businesses questioned would actively pay for tolls, presumably in the expectation that they are
reasonably priced and will help to make their transport faster and more efficient.
“
For us, this is further evidence of the concern that employers have about the impact of congestion on their operations, something
that is seen elsewhere in our research.
Shaun Sadlier, Head of Arval Mobility Observatory in the UK
ARVAL MOBILITY OBSERVATORY | JUNE 2019 26STRATEGY EXPECTED BECAUSE OF THE INTRODUCTION
OF LOW EMISSION OR CLEAN AIR ZONES
TOTAL
PERCENTAGE OF COMPANIES
EXPECTING TO BE IMPACTED 34% 35% 30% 32% 39%
REPLACE VEHICLES WITH THOSE THAT
20% 15% 19% 22% 25%
MEET THE NEW ZONE’S STANDARD
MAKE NO CHANGES AND ACCEPT
THE IMPACT ON FLEET OPERATIONS 13% 17% 8% 10% 13%
INCLUDING COSTS
FIND OTHER TYPES OF TRANSPORTATION
TO ALLOW CONTINUATION OF BUSINESS 12% 14% 10% 13% 9%
WITHIN THESE ZONES
OTHER 3% 4% 1% 2% 3%
27 ARVAL MOBILITY OBSERVATORY | JUNE 2019EXPECTED IMPACT FROM THE INTRODUCTION OF
ADDITIONAL TOLL ROADS
TOTAL
WILL ENCOURAGE DRIVERS
TO USE TOLLS AND RECLAIM 51% 59% 54% 45% 45%
THEM AS AN EXPENSE
WILL CONSIDER THAT IT IS UP
TO DRIVERS TO USE THEM AT 26% 18% 27% 30% 35%
THEIR OWN COST
ARVAL MOBILITY OBSERVATORY | JUNE 2019 28EMPLOYEE
6 MOBILITY
29 ARVAL MOBILITY OBSERVATORY | JUNE 2019EMPLOYEE MOBILITY
“
This is an area where we have seen substantial growth in recent years, especially when it comes to personal contract hire, affinity
and salary sacrifice schemes.
Increasingly, businesses are seeing car leasing schemes as an attractive employee benefit, that offer many of the advantages of
company car schemes to a wider range of the people working for them.
This is happening first in larger corporates, as you would expect, where many major employers are introducing affinity schemes that
provide a fully funded, maintained and insured car for a single monthly payment. It’s an interesting development.
Shaun said that the trend was probably more than offsetting slight reductions in the number of company cars being offered by
employers.
We have been saying for some time that while there has been a marginal fall in the number of company cars generally, the overall
fleet leased to employees in the UK has increased.
“
As our figures show, even among large employers, penetration for this type of initiative is still only around the 30% mark, so we
expect this to be a major area of growth for leasing companies in the next few years.
Shaun Sadlier, Head of Arval Mobility Observatory in the UK
ARVAL MOBILITY OBSERVATORY | JUNE 2019 30PROPORTION OF COMPANIES OFFERING NON-
COMPANY CAR DRIVERS SOLUTIONS FOR FINANCING
THEIR PERSONAL CARS
TOTAL
12% 2% 6% 16% 29%
31 ARVAL MOBILITY OBSERVATORY | JUNE 2019SOLUTIONS PROPOSED TO NON-COMPANY CAR
DRIVER EMPLOYEES IN ORDER TO FINANCE THEIR
PERSONAL CARS
TOTAL
CASH ALLOWANCE 7% 2% 1% 11% 14%
SALARY SACRIFICE 6% 0% 6% 2% 20%
PERSONAL CONTRACT HIRE 2% 0% 0% 1% 7%
AFFINITY SCHEME 2% 0% 0% 1% 6%
PERSONAL CONTRACT 1% 0% 0% 1% 13%
PURCHASE
NO SOLUTION OFFERED 88% 98% 94% 84% 71%
ARVAL MOBILITY OBSERVATORY | JUNE 2019 32GOVERNMENT
7 FOCUS
33 ARVAL MOBILITY OBSERVATORY | JUNE 2019GOVERNMENT FOCUS
“
The striking aspect about the areas highlighted by fleet and mobility managers is that they are all highly practical issues that affect
the running of business transport on a day-to-day basis.
The condition of roads and the problem of congestion are a concern because they affect the core efficiency of company transport.
Businesses want journeys to be predictable and safe, and poor roads and large volumes of traffic have a negative effect on this aim.
It is also striking the extent to which there is a desire to see Government make the adoption of EVs and hydrogen vehicles easier.
There is clearly growing enthusiasm among businesses for these cars and vans, but also an awareness of the need to make their
cost and the level of infrastructure support more appealing.
Linked to the adoption of zero-emissions fuels is the belief that more should be being done to tackle road transport-based pollution.
Our experience is that businesses are almost always supportive of Government moves to make improvements in this area.
Finally, some people may think it surprising that fleet and mobility managers want to see better public transport but the strategic
“
developments we are seeing in this area show that businesses see the future of travel as being one where cars and vans are used
alongside a range of other options. Better trains, trams and buses should form a key part of this mix if possible.
Shaun Sadlier, Head of Arval Mobility Observatory in the UK
ARVAL MOBILITY OBSERVATORY | JUNE 2019 34AREAS THAT GOVERNMENT SHOULD CONCENTRATE
ON ACCORDING TO FLEET AND MOBILITY MANAGERS
IMPROVING ROADS 54%
TACKLING ROAD CONGESTION 47%
INCENTIVISING COMPANIES TO ADOPT EV AND 30%
HYDROGEN VEHICLES
22%
IMPROVING PUBLIC TRANSPORT
REDUCING POLLUTION CAUSED BY TRANSPORT 18%
35 ARVAL MOBILITY OBSERVATORY | JUNE 2019AREAS THAT GOVERNMENT SHOULD CONCENTRATE
ON ACCORDING TO FLEET AND MOBILITY MANAGERS
TOTAL
IMPROVING ROADS 54% 55% 57% 56% 44%
IMPROVING ROAD
47% 44% 50% 52% 41%
CONGESTION
INCENTIVISING
COMPANIES TO USE 30% 26% 27% 36% 34%
ALTERNATIVE FUEL TYPES
IMPROVING PUBLIC 22% 29% 20% 13% 27%
TRANSPORT
REDUCING POLLUTION
18% 14% 22% 17% 21%
CAUSED BY TRANSPORT
OTHER 3% 2% 3% 0% 8%
ARVAL MOBILITY OBSERVATORY | JUNE 2019 36ROAD SAFETY
8
37 ARVAL MOBILITY OBSERVATORY | JUNE 2019ROAD SAFETY
“
Advanced Driving Assistance Systems (ADAS) are becoming very common on company cars but they are something of an issue for
fleets in that there is very little reliable information available about which work best in terms of actually helping drivers avoid
accidents.
What this research represents is therefore really a list of which devices fleet and mobility managers believe will be most useful
in real world conditions – and what it indicates they want more than anything is to avoid collisions with other vehicles and
pedestrians.
Our view is that ADAS technology works best in promoting safety when used alongside telematics devices that allow driver
behaviour to be highlighted, helping employees to make improvements both by themselves and through options such as training.
Shaun added that it was concerning to see some suggestion that drivers working for smaller employers were experiencing lower
levels of risk assessment than larger ones.
This is almost certainly an issue of resources. A large organisation will tend to have company-wide risk assessment arrangements in
place that cover all their activities in depth and the fleet will benefit from this professionalism.
“
What is needed are more services and practical help to enable all smaller employers to raise their safety to comparable standards
to their larger counterparts and this is a task in which the entire fleet industry needs to play a part.
Shaun Sadlier, Head of Arval Mobility Observatory in the UK
ARVAL MOBILITY OBSERVATORY | JUNE 2019 38MOST USEFUL SYSTEMS TO IMPROVE DRIVER SAFETY
COLLISION AVOIDANCE OR WARNING SYSTEMS 49%
AUTOMATIC EMERGENCY OR BRAKING SYSTEMS 46%
PEDESTRIAN DETECTION SYSTEM 38%
LANE DEPARTURE WARNING SYSTEM 30%
DRIVER FATIGUE WARNING SYSTEM 30%
AUTOMATIC PARKING SYSTEMS 20%
ADAPTIVE CRUISE CONTROL 15%
39 ARVAL MOBILITY OBSERVATORY | JUNE 2019MEASURES TAKEN BY COMPANIES IN ORDER TO
MINIMISE ROAD RISK
TOTAL
RISK ASSESSMENT 61% 32% 62% 79% 78%
COMMUNICATION 35% 12% 35% 47% 68%
PROGRAMME
ON-ROAD TRAINING 33% 11% 26% 43% 54%
CLASSROOM TRAINING 26% 8% 32% 37% 39%
ARVAL MOBILITY OBSERVATORY | JUNE 2019 40AKT12503/0619 Source: AMO Research 2019 https://mobility-observatory.arval.com/
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