For Large Fleets, Coronavirus Will Increase Company Car Demand
New research suggests that the second wave of the coronavirus pandemic will actually increase demand for company cars among large fleets…
Large Fleets, Coronavirus and Company Cars
New research carried out by Censuswide for Driving for Better Business (DfBB) has revealed that the majority of large fleets expect company car demand to rise. The research included the perspectives of decision-makers at board level from 150 different businesses. Some 56% expect company car requirements to increase. A further 47% believe demand will increase for company vans and 70% expect their grey fleets will grow; with more employees using their own vehicles for work-related journeys, as opposed to using public transport. It’s thought the company cars will play a vital role in ensuring continuity over the course of the coronavirus pandemic.
Recently the Chairman of the Association of Fleet Professionals (AFP), Chris Hollick, suggested that company cars remain an effective tool for businesses; sometimes being the only viable transport option available to employers. Separate research conducted by Alphabet suggested rising interest in company cars. More than a third of the employees it surveyed (37%) said they’d consider a company car; principally so they could travel safely. Previously, cash benefits were the perk of choice. In addition, large fleets and businesses seem to have been affected by the pandemic more than SMEs. For instance, 70% of larger businesses expect homeworking to become more relevant amongst their employees compared to 48% of SMEs. 50% of larger businesses also expect event participation to decline, compared to 40% of SMEs.
Businesses Remain Unprepared
Despite the potential of company cars, the DfBB has revealed that many large fleets and businesses remain unprepared for the challenges ahead. For instance, two-thirds have no plans for the second wave of coronavirus. Many also have serious concerns over rebuilding their businesses (42%), dealing with operational costs (38%) and staff welfare (37%). Simon Turner, campaign manager at Driving for Better Business, commented on the figures. He said, “top of mind for business leaders are rebuilding their business and surviving any additional lockdown measures, while managing workforce welfare and mental health”. He added, “one thing that is certain though, is that firms must adjust quickly to the current environment and take every opportunity to minimise operational costs and improve efficiencies in order to give themselves the best chance of survival, and the ability to thrive as soon as conditions allow”.
Company cars, then, seemingly have a bright future ahead of them as far as large fleets and businesses are concerned. Nevertheless, there’s much work to be done within the industry; in ensuring plans are made for the long-term impacts of the pandemic.
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