Expected growth in eco-friendly company cars | Ken Brown KIA

Booming confidence and expected growth in eco-friendly company cars revealed by Fleet Market Attitudes Study

Average fleet size has increased by 4 per cent in the last five years

  • Environmentally-friendly proportion of fleets to increase to 42 per cent in the next five years

Nearly all - 97 per cent of UK fleet managers are confident in the country’s economic growth, with 71 per cent agreeing that this affects their business, according to new Fleet Market Attitudes report[1] by Kia. Figures show that the UK’s current economic climate has had a positive effect on the fleet market, with the average company’s fleet size increasing by 4 per cent in the last five years, and demand for fleet services increasing by three per cent since last year.

With the UK economy experiencing a steady rate of growth, the UK car market is reporting a similar prosperity. The majority of the market’s growth has come from the fleet sector, which is up by 11 per cent year to date, with fleet accounting for 53 per cent of the total volume[2].

When asking fleet managers where they see their fleet in the next five years, they believe the proportion of eco-friendly models will increase to 42 per cent, which will be helped along by improvement in infrastructure and increased familiarity. Current research shows that when selecting a fleet range, organisationsare likely to prefer saloons and estates, with appearance, environmental friendliness, fuel-efficiency and safety being top considerations. Fitting in with this research is the Kia cee’d, a strong performer in Kia’s fleet offering, soon to be followed by the new editions of the Optima, due to be launched in 2016.

Away from the traditional selections, hybrids and EVs are becoming part of the consideration as more models become available. However in order to consider changing their organisation’sentire fleet to eco-friendly models, one of the things respondents said would be a requirement is to save an average of £483 on fuel costs each car, per year.

When looking at challenges that fleet managers face, around half - 49 per cent report lack of time to handle all queries about their employees’ current company cars, with 24 per cent admitting there is a lack of resource to identify the best vehicles for the fleet.

Kia offers Care-3, which gives operators a competitive fixed price package on the first three services, which may come as good news to the 17 per cent who admitted budget worries when it comes to servicing their fleet.

“We have been growing strongly as a brand for the past ten years and our sales are currently up in 2015 which reflects the findings in our report. Our fleet growth has outstripped the market, and we remain in a healthy position,” says Paul Philpott, President and CEO of Kia Motors. “Increasing pressures on businesses being green is driving motoring innovation in this area. With Soul EV and the soon to be released Optima Hybrid we are well placed to respond to the gradual build up in demand for full and part electric vehicles.”

- Posted on: Monday 16th November 2015