Fleet industry news round up

30th April 2025

Sustainability reports highlight challenges in switching to Electric Vans

Fleet and business travel managers must balance short-term mobility needs and financial pressures with the long-term goal of being ready for net zero.

A sustainability report conducted by Europcar acknowledges the significant strides made in EV adoption, with fleet users leading the charge. The current barriers highlighted in the report include:

Availability of charging points
Overall cost concerns
Reduced productivity due to charging stops
Battery range
Vehicle availability

The BVRLA Van Plan campaign is working to tackle these challenges to meet the 2030 target of 70% zero-emission vans. The campaign aims to increase fiscal support, improve charging infrastructure, and remove regulatory barriers.

DfT considers new MOT test for Electric Vehicles

New rules aimed at improving safety around electric vehicles (EVs) and advanced driver assistance systems (ADAS) are being proposed by the European Commission.

While the UK sets its own MOT rules, the Department for Transport (DfT) has stated that any new proposals from the European Union will be considered alongside the existing regime.

The proposed EU rules would introduce enhanced inspections of EVs and ADAS as part of periodic technical checks, like the UK's MOT. The Commission argues that current testing standards are outdated and no longer sufficient to keep pace with rapid advances in vehicle technology.

According to the European Commission:
"Current testing methods have not been adapted to advances and the roll-out of new technologies such as advanced driver assistance features and electric vehicles."

The DfT continues to review the MOT system to ensure that road safety and environmental standards are maintained.

The Government confirmed earlier this year that the frequency of MOT testing will remain unchanged..

UK demand for new vans fall for fourth consecutive month

The latest SMMT sales figures for March show UK registrations of new Light Commercial Vehicles (LCVs) fell by 3.2%, with 51,221 vans, 4x4s, and pickups registered.

This marks the fourth consecutive monthly decline in the new LCV market, as weak business confidence continues to hold back investment.

Lower volumes were driven by a 10% drop in registrations of the largest vans, down to 32,025 units. Despite this, they remain the most popular segment, accounting for 62.5% of the overall market.

Deliveries of medium-sized vans and 4x4s also declined, falling by 8.5% and 18.9% to 8,180 units and 1,324 units respectively.

Leasing companies attribute the fall to the significantly higher cost of new vans compared to the vehicles they replace, and to businesses taking a cautious investment approach amid ongoing economic uncertainty. Rising employer National Insurance contributions have also added inflationary pressure. As a result, many customers are holding onto vans longer and ‘rightsizing’ their fleets to avoid costly, underutilised assets.

Electric van uptake remains minimal, according to leasing executives, who now expect the LCV sector to fall further behind the levels required by the Zero Emission Vehicle (ZEV) Mandate.

Demand for smaller vans continued to rise for the 13th consecutive month, up 60.8% to 1,585 units, now representing 3.1% of the market.

Registrations of new pickups surged by 40.6% in March 2025, with 8,107 new models hitting UK roads, as businesses moved to invest ahead of upcoming changes that will classify double-cabs as cars for benefit-in-kind and capital allowance purposes.

Additionally, demand for new battery electric vans (BEVs) weighing up to 4.25 tonnes grew for the sixth consecutive month, up 40.3%.

Salary sacrifice surpasses 100,000 vehicles!
Business Contract Hire (BCH) is driving growth in the leasing sector, with salary sacrifice schemes continuing to rise—now surpassing 100,000 vehicles.

BCH grew by 6%, now accounting for the majority of the BVRLA's leasing fleet

Cars funded through salary sacrifice made up 61% of BCH additions

9 in 10 (90%) new salary sacrifice vehicles were battery electric vehicles (BEVs)

In Q3 2024, 87% of new BEV company car orders were made via salary sacrifice, and 53% through BCH

In Q4 2024, 54% of new BCH vehicles were electric, while BEV penetration in Personal Contract Hire (PCH) rose from 16% to 28%

These figures show that salary sacrifice is enabling thousands of employees to access electric cars—many of whom may not have otherwise been able to do so. Overall, half of all new company car orders are now fully electric.

KINTO also offers a salary sacrifice scheme.

Find about more about our scheme here.
Fleet industry urgently calls for EV battery health checks

The Association of Fleet Professionals (AFP) has joined growing calls for an industry-backed battery health certificate for electric vehicles (EVs).

The AFP, along with numerous other organisations, recently signed a British Vehicle Rental and Leasing Association (BVRLA) open letter urging the Government to provide more support for electrification in the used vehicle sector. A key focus of the letter was the need to make EVs more affordable and to protect residual values—both of which would benefit from the introduction of standardised battery health checks.

With used battery electric vehicle (BEV) values having dropped by 50% over the past two years—and forecast to fall another 28% by 2030—restoring consumer confidence is critical. The AFP emphasises the importance of countering widespread misinformation around EV batteries, including exaggerated concerns about spontaneous combustion or rapid degradation. Evidence consistently shows EV batteries to be stable, robust, and long-lasting.

New research from AXA UK highlights that battery health certificates could play a crucial role in revitalising the UK’s used EV market, providing an objective measure of value that is currently missing.

Sustainability reports highlight challenges in switching to Electric Vans

DfT considers new MOT test for Electric Vehicles

UK demand for new vans fall for fourth consecutive month

Salary sacrifice surpasses 100,000 vehicles!

Fleet industry urgently calls for EV battery health checks

What challenges could 2023 bring for the fleet industry

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