January 2, 2025
Sara Davies
Wessex Fleet Updates
It’s that time again, when the Christmas festivities bring with them a little pause from the daily grind, for some reflection over the past year. And what a year it’s been! There hasn’t been a Christmas in our two decades of business with quite so much to celebrate.
Not only have we marked our 20th anniversary, we’ve launched our salary sacrifice electric car scheme website and won two major contracts which we’re very excited to be on the verge of announcing any moment. One of them, a household name, will bring with it a dramatic increase in our workforce of up to 30%, enabling us to employ even more local people.
But while we’ve been buoyed by these wins, it’s been another year of shifting sands for the fleet sector in general. Let’s take a look at what’s been happening…
A Welcome Drop in Inflation
A sluggish pandemic recovery and high inflation have meant that, in much the same way as other businesses across the UK, the fleet sector has felt the pinch. An inflation battered economy has put the cost of running fleets under significant pricing pressure. On the plus side, costs in 2024 have looked more stable than in previous years and the drop in inflation this year has provided some welcome relief. However, just as there seemed to be some optimism and positivity, the budget came in and caused some issues. SMEs in particular are concerned about the cost of NI increases, and are re-considering investment decisions as a result.
Electrification Drives Onward
Electric vehicles( EVs) continue to be a significant part of our fleet management provision for clients across 2024. Electrification is an ongoing process that continues to drive the market and over 50% of what we do in the corporate side of our business is EV.
Challenges remain around charging infrastructure across the UK. This continues to be a key issue. General ease of charging has improved this year, but it still has a way to go to allay driver fears. However, customers are getting the hang of EVs gradually, and new models with more range are making the switch far easier than previously.
Looking Forward to 2025
In 2025, we expect to see plenty of new EV models coming to market with even higher ranges than in 2024. With range anxiety being a key sticking point for many fleets at the moment, we expect this to herald a new phase of EV uptake among businesses. Continued uptake of electric vans will also be on the horizon, and we’re likely to see more and more customers leasing second time EVs as their current leases come to an end. We also anticipate Chinese manufacturers and other lesser known new EV brands better known overseas, to play an increasing role in the UK as well.
Simon’s Top Tips for Fleet Businesses in 2025
Wessex Fleet’s Director Simon Naylor oversees the daily rental, maintenance, corporate sales and fleet support operations. His decades of experience, coupled with day-to-day involvement, give him a unique insight into where businesses should align their fleet strategies in 2025.
Simon says: “A focus on aftersales management of EVs is key to successful uptake, and integration into fleets. Much is made of up front EV costs and the investment of charger installs. However, reduced NI, BIK, fuel and overall maintenance costs can be overlooked. These can be significant.
“Wessex will continue to support clients in getting to grips with the costs of EVs through Whole Life Cost analysis. This will help drive the right investment. We’ll work to ensure customers are driving vehicles that are at the forefront of new technology. Drivers will pay £50 to £60 a month in company car tax next year, for the use of a very expensive asset. Despite the evolving tax position, this remains a very good deal for drivers.”
Enjoyed this article? Read more of our latest blogs below:
- Ten tips for Managing Fleet EVs
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