The Association of Fleet Professionals (AFP), a membership organisation for those involved in commercial fleet services, has named electrification as a key issue the sector will face in 2023.
It also pointed to the oncoming recession as something that should be of central concern to fleet operators.
Paul Hollick, chair of the AFP, said that businesses would be looking to fleet managers to deliver more value than ever, especially around issues such as sustainability and operational costs.
Hollick said: “Next year is going to be a tough one, no question, and there will be considerable pressure on fleet managers to produce results that help their employers make progress on their electric vehicle (EV) agenda while also controlling costs.
“Fuel expenditure is going to help drive this line of strategy, alongside environmental concerns.
“Petrol and diesel prices remain stubbornly high and the impending fuel duty increase will further concentrate minds.
“Even given that electricity prices could increase in the spring when the government rethinks its price cap, electrification is going to look more attractive than ever in financial terms.
“Currently, several of the largest fleets within the AFP are deploying electric cars and vans in large numbers, and we are sharing their learnings as far and wide as possible through a variety of channels.
“It’s positive that the recent fiscal statement provided much increased certainty over benefit in kind taxation and also that we’ve seen some action over the advisory electricity rate (AER) but we’d like to keep the dialogue going with government to achieve further improvements in the latter as well as campaigning in a number of related areas.”
From 1 December 2022, the AER for all-electric company cars will increase from five pence to eight pence per mile.
Compounding the challenges of fleet operators is limited vehicle supply, which Hollick said is likely to remain poor for the whole of 2023, thus affecting the ability of firms to electrify their vehicles.
Despite differing accounts from manufacturers across the sector, AFP maintains that there is a massive supply backlog to clear before the situation improves, and that electrification is contingent on good supply.
AFP plans to issue its new Tax and Legislation Manifesto in early 2023, which will outline the organisation’s strategy around some of the sector’s biggest issues.
