Electric Vehicles Set to Dominate Corporate Fleets, Overcoming Hybrids

The tide is turning for electric vehicles (EVs) as they are poised to take a significant position in corporate fleets, even though they still face challenges in the utility vehicle sector.

  • Arval Mobility Observatory France's 2024 “Fleet and Mobility Barometer” shows a growing interest in EVs among corporate fleets in France, with nine out of ten companies expecting their fleet size to remain stable or increase due to business expansion.
  • Leasing is the preferred method for acquiring vehicles, facilitating access to electric vehicles, though EVs are still lagging behind other electrified drivetrains.
  • While over 80% of French companies have electrified technology in their car fleets, hybrids are more common than EVs, indicating a gradual shift towards more sustainable options.
  • Utility vehicles face resistance to electrification due to concerns over autonomy, pricing, and lack of charging infrastructure, but the outlook for electric passenger cars in corporate fleets is positive.

The future of corporate mobility

According to the “Fleet and Mobility Barometer” by Arval Mobility Observatory France, a significant change is underway in the automotive fleets of companies across France. With 300 companies surveyed, the findings offer an essential outlook for car manufacturers, as corporate fleets represent a crucial market for new car sales.

Steady growth in fleet sizes

The survey reveals an optimistic view among companies regarding their fleet sizes, with the majority expecting stability or growth within the next three years, driven by business expansion. This is a positive sign for vehicle manufacturers, signaling a robust demand in the corporate sector.

Leasing leads the way

Long-term leasing emerges as the dominant acquisition strategy for corporate fleets, offering rapid vehicle renewal and cost control benefits. This model is particularly beneficial in facilitating access to electric vehicles, although EV adoption remains behind other electrified options such as hybrids and plug-in hybrids (PHEVs).

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Electric vehicles in corporate fleets

While over 80% of French companies currently include at least one electrified vehicle in their fleets, the preference leans towards hybrids. This trend confirms the popularity of PHEVs among companies, offering tax benefits without compromising on thermal mode usage. However, electric vehicles face challenges in the utility sector, with only 7% of companies incorporating EVs due to concerns over autonomy, pricing, and charging infrastructure.

Positive outlook for electric cars

Despite current challenges, the future looks bright for electric vehicles in corporate car fleets. With 24% of companies considering EV adoption for their passenger cars, corporate decision-makers estimate that EVs will comprise 23% of their fleets in three years, surpassing PHEVs and simple hybrids. This shift towards electric vehicles in corporate fleets is set to enrich the second-hand market, offering more sustainable options for individual consumers. However, the utility vehicle sector may still lag behind, with only 9% expected to be electric in the same timeframe.

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