UK fleets predict shift away from diesel

A survey of 200 fleet operators suggests more companies are putting petrol cars on their choice lists, although diesel currently remains the dominant fuel throughout the industry.

The ExpertEye Fleet Industry Review, produced in association with Professor Colin Tourick from the University of Buckingham, shows 99% of fleets interviewed offer diesel, while 67% offer petrol, compared to a historic average of around 40%.

The report notes that the figures show where fuels are used, but not the number of vehicles. So, while a larger percentage of fleets may offer petrol vehicles, the total number used may still be much lower than diesel. Around 80% of tax-paying company car drivers in the UK currently have diesels.

The report also shows that 62% of companies have hybrids on their fleets, 24% have electric range extenders and 22% electric.

Over the next two years, around one-third of fleets predict a decline in diesel, while hybrids account for the greatest level of expected growth, along with petrol, electric range-extenders and fully electric vehicles.

The report said: “It is likely we will see a greater penetration of these vehicles in future, with diesel representing a gradually declining percentage of the vehicles in corporate fleets.”

In addition, around one in 10 van fleets report that they are considering a decrease in the use of diesels, with a potential shift to plug-in technologies the most likely alternative.

Diesel is at the centre of an ongoing battle over the future of fuels, with manufacturers arguing that the latest Euro6 models offer a clean future for diesel.

However, the historic diesel emissions scandal involving Volkswagen and a string of negative stories about the health impact of diesel emissions are affecting decision-making.

Several fleets in the UK, particularly local authorities, have indicated they are shifting away from diesel.

The ExpertEye report also shows that contract hire continues to dominate car finance, with 53% of respondents using this method, although it has fallen back from historic highs of above 60%.

Finance lease has shown steady growth and is now utilised by 28% of car fleets.

When it comes to future demand for vehicles, more than half of respondents expect no change in demand for cars and more than three quarters predict no change in demand for LCVs.

Fleets say reliability, fleet running costs, safety and risk management remain top of their concerns when making decisions for the coming year.