Total cost of ownership biggest challenge for fleets – Arval

A study conducted by Arval has found that total cost of ownership (TCO) is the biggest challenge facing UK fleets, with 48% of respondents naming it as a main challenge for fleets over the next three years.

46% of fleets reported that implementing alternative energy strategies would be a challenge over the next three years, while 39% cited inducing more responsible driving.

Adapting to environmental policies was seen as a challenge, with 32% naming both adapting to restrictive policies on internal combustion (ICE) vehicles and adapting to low emissions zones in urban areas.

Compared to other regions, UK fleets were more concerned about TCO, as just 27% of European fleets and 31% of global fleets named it as an upcoming challenge.

Global fleets were similarly concerned about restrictive policies on ICE vehicles, with 31% naming it as a challenge.

Managing longer vehicle delivery times was a widespread concern. 23% of UK fleets named it as a challenge, as did 24% of both European and global fleets.

John Peters, head of Arval Mobility Observatory in the UK, said: “The reasons behind the increase seen for total cost of ownership are not difficult to discern.

“The core costs of running company cars and vans – from acquisition to maintenance to insurance – have all been rising while, at the same time, economic growth has been limited.