Market Outlook: Fleets prioritise flexibility as the market evolves

Fleet operators are continuing to prioritise flexibility as pricing, electrification and changing business needs reshape the market.

The latest BVRLA Leasing Outlook shows the leasing sector grew 7.2% year-on-year, with Business Contract Hire and salary sacrifice driving growth. Salary sacrifice volumes alone have risen 165%, reflecting continued demand for tax-efficient electric company cars.

At the same time, manufacturers are competing harder than ever. Established brands are offering aggressive discounts to secure fleet contracts, while Chinese manufacturers continue to gain market share with competitively priced, technology-rich vehicles.

In the used market, demand remains robust. Manheim and BCA report buyers are increasingly selective, with the strongest prices achieved by clean, well-maintained vehicles. Used electric vans continue to outperform the wider market, supported by improving demand and faster sales.

Looking ahead, fleets may face fresh challenges as manufacturers work towards tougher ZEV Mandate targets for vans. With product availability still developing, procurement decisions are likely to focus on balancing cost, vehicle choice and operational flexibility.

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