Fleets extending vehicle life and switching to EVs in response to chip shortage

Fleets have been less affected than expected by the global semiconductor shortage that has impacted the original equipment business. According to latest research from Arval Mobility Observatory’s 2022 Barometer, just one in four fleets (26%) say that they have been affected.

16 per cent report having been impacted when acquiring petrol, diesel and electric vehicles (EVs); 5 per cent on EVs only; and 5 per cent on petrol and diesel vehicles only. Conversely, 74 per cent say that there has been no impact at all.

Out of those who say they have been affected, the top three measures adopted in response include extending the life cycle of current vehicles (83%), speeding up the implementation of EVs (35%) and considering adding other vehicle manufacturers to their policy (11%).

Shaun Sadlier, Head of Arval Mobility Observatory in the UK, said: “It is perhaps surprising that as many as three out of four fleets report that there has been no impact on their operations. This is, in our view, quite a high figure. The most likely explanation is that it is largely accounted for by either fleets planning further ahead in their vehicle replacement process, or by the contract extensions that were widely undertaken by many businesses during the pandemic when mileage fell dramatically These particular fleets have been unaffected by delayed orders either because they have not been trying to replace vehicles, or have not yet really felt the full impact of the extended lead times.”

Therefore, rather than submitting to new vehicle supply issues, fleets are doing two things: Firstly, extending vehicle life cycles (which in turn provides additional tyre replacement market and vehicle maintenance opportunities to the tyre trade); and secondly, speeding up the transition to electric vehicles, which again brings opportunities for those prepared for these new horizons.