After another rollercoaster year in the world of fleet, some of the sector’s pre-eminent experts look at the upcoming 12 months and what to expect.
Association of Fleet Professionals
Paul Hollick, AFP Chair
“There’s a whole host of issues facing fleets in 2025 and here are the AFP’s thoughts on a few.
“The current consultation over the zero emissions vehicle mandate should hopefully have a positive outcome, especially when it comes to electric and other zero emissions vans. Fleet adoption has effectively stalled and more government help is required to improve affordability, charging and regulation. The 4.25-tonne question also needs to be resolved
“For all EVs, the charging infrastructure requires huge improvements. We continue to live in a two-tier world when it comes to charging availability – those with off-road parking can usually install a charger and access low-cost electricity; those living in apartments or terraced housing usually can’t. Anyone forced to use highway charging faces exponentially higher costs.
“Fleet budgets remain under considerable pressure. Insurance premiums, for example, appear to have stabilised after huge increases but remain at historically high levels, while the cost of service, maintenance and repair has also risen. In both these areas, any improvements would be very welcome, as would more action to resolve the skills shortages that continue to affect garages and workshops.”
Holman
Rory Mackinnon, Commercial Director
“At our most recent customer forum, three key issues emerged as priorities for 2025: AI technology, sustainability, and the ongoing challenge of cost reduction.
“Sustainability leads the agenda, with uncertainty around the ZEV mandate. However, reducing fleet CO2 output isn’t limited to EVs – strategies such as adopting lighter ICE and hybrid vehicles or using smart routing software offer practical steps to cut emissions.
“Many businesses are increasingly embracing AI technology, a trend that will continue to expand in 2025 with data driving intelligent decision-making. Our role is to harness diverse data sources to provide customers with actionable guidance and help them maximise their investments.
“Finally, after years of high inflation, rising interest rates and added costs from a new government, our customers face financial pressure from all sides. We remain committed to maximising the value of their fleet investments by keeping vehicles operational, reducing rental costs, and optimising depreciating assets through dynamic replacement cycles.”
Bridgestone Mobility Solutions
Beverley Wise, Regional Director, Webfleet
“As we head into 2025, UK car and van fleet managers face a confluence of challenges that demand careful navigation. Among these, the role of data and AI will be pivotal.
“AI offers immense potential to transform fleet management through predictive analytics and automation. Webfleet’s generative AI development, for example, is already helping fleet operators make quicker, more informed decisions, supporting driver behaviour analysis, identifying fuel-saving opportunities and addressing inefficiencies.
“However, the accuracy and quality of the data feeding into these systems remain critical.
“The buzzword appeal of AI can sometimes overshadow the practical realities, leaving many fleet teams grappling with systems that fail to deliver actionable insights. Poor-quality or incomplete data risks undermining the very AI solutions designed to simplify operations and drive efficiencies.
“These challenges are compounded by a tough macroeconomic climate, which is putting additional pressure on businesses.
“Cost-cutting measures are leading to leaner operations and reduced headcounts, with fleet departments often bearing the brunt. For these teams, reliable systems and robust data will be essential to maintain efficiency and achieve operational goals, even with fewer resources.
“At the same time, strong leadership from the UK government is crucial to provide fleets with the confidence needed to make informed decisions about decarbonisation and electrification.
“Clear policy direction and investment in charging infrastructure will be pivotal in accelerating EV adoption. Additionally, myths and misconceptions around electric vehicles persist, and the Government should take proactive steps to debunk these and educate the market.
“To succeed, the UK fleet sector must prioritise data integrity and invest in scalable, high-quality solutions to meet these challenges head-on.
“By doing so, businesses can unlock the full potential of emerging technologies while navigating economic pressures. Collaboration between technology providers, fleet managers and policymakers will be key to ensuring the sector thrives.”
Lightfoot
Paul Hollick, Managing Director
“Decarbonisation will continue to be a big focus in 2025 – but this isn’t just confined to the switch to EVs.
“Companies need to get more out of their existing ICE vehicles, especially for those fleets where there is currently no easy route to move to an EV solution (for example businesses that need to tow, ultra-rural fleets and those that cannot easily charge vehicles overnight).
“This means focusing on driver behaviour and using in-cab coaching to reward drivers for hitting key targets in economy and safety.
“I do think that staff doing more than 20,000 miles per year can make EVs work. Rural fleets are a challenge, daily range is a challenge, operational downtime on charging is a challenge… but not annual miles.
“Also, we get a massive increase in range on an EV through our real-time coaching; likewise, making sure PHEVs are charged and driven in their sweet spot can also boost range.”
Northgate UK & Ireland
Neil McCrossan, Managing Director
“Many of our customers in 2024 told us that carbon reduction was the main reason for embracing electric vehicles and we are confident this trend will continue in 2025.
“We will be seeing more operators begin trialling EVs as we support them on their electrification journey.
“Trialling vehicles is the only real way that fleets can discover whether electric vans work for them and that is not just on range and mileage to accommodate their work patterns, it’s also about having the charging infrastructure in place to support their vehicle fleet.
“Also looking forward, fleets will need to start planning for eLCVs as ICE van production declines. LCV fleets run three- to five-year replacement cycles, so people need to start planning now.
“A key area of growth in 2025 will also be the number of companies that start to embrace electric utility vehicles and e-cargo bikes as part of our micromobility rental programme.
“We have run some successful trials since launching the programme in April and have many more going live in 2025. Operators are finding them to be ideal for use in locations where the size of a traditional LCV might preclude its use as well as being easily integrated into a larger LCV rental fleet.”
Drax Electric Vehicles
Naomi Nye, Head of Sales
“While electric cars often dominate headlines, 2025 could be a breakthrough year for advancements in electric vans and heavy goods vehicles (HGVs).
“Historically, commercial van EV adoption has lagged because available models haven’t met operational needs,” Naomi explains. “However, with new and more capable options entering the market and regulatory deadlines looming, adoption is set to accelerate.
“As for electric HGVs, there are currently a few hundred now on UK roads. The sector remains in its infancy compared to over 400,000 diesel-powered trucks (approximately) that dominate the landscape.
“The UK government is actively funding trials for zero-emission HGV projects to drive forward this industry, addressing challenges like range and infrastructure requirements.
“These developments are pivotal. They will demonstrate the feasibility of electric HGVs and hopefully make fleet electrification more accessible to a wider range of sectors.”
“Looking ahead, collaboration is key. To truly decarbonise, we need more than just technology. We need the industry to work together to overcome barriers, from operational challenges to alternative fuels.” By integrating solutions that improve both infrastructure and driver satisfaction, the UK can accelerate its journey toward zero-emission logistics. ”
Europcar Mobility Group UK
Gary Smith, Managing Director
“Every business – facing an increase in National Insurance contributions from April – will be looking for ways to remain efficient and competitive. And there’s no question, fleet managers will be tasked by their organisations with finding ways to improve efficiencies across all areas of business mobility.
“Working with partners that can deliver flexible mobility solutions – that don’t require long-term financial commitments – will certainly be a priority. As will working with partners who can help them take more steps on the transition to zero – without any detrimental impact on business productivity.
“The other big issue is the doubling in Vehicle Excise Duty (VED) on petrol and diesel vehicles from April. This is likely to hit the vehicle rental sector, which is probably the largest buyer of new vehicles, particularly hard. Our sector plays a critical role in reducing emissions by enabling vehicle sharing. By doubling the road tax on new vehicles – which are going to be the most technologically advanced and least polluting – the Government is effectively undermining its own emissions targets.
“Whilst the new VED rates will be tiered by emissions, even the lower emitting-vehicles are impacted. This is an industry wide issue; Europcar will therefore work with the BVRLA and other industry representatives to take this message to government to seek a review of the plans. It makes much more sense to increase taxes on the most polluting, older vehicles.”
Licence Check
Keith Allen, Managing Director
“There will be four main drivers behind the 2025 fleet market: the economy, ESG compliance, electrification and driver/vehicle compliance.
“All companies will be looking to control costs more effectively in 2025 due to the Budget, which although billed as a Budget for growth, will effectively restrict growth, jeopardise jobs and dampen investment across the UK. Companies are already looking for digital solutions that will help them to keep costs down but the Budget has driven that need to higher levels.
“At the same time, businesses of all sizes, not just large plcs, will look to improve their ESG compliance, not just from an operational perspective but from a measurement standpoint, where they are accurately able to measure the results of their carbon reduction initiatives to be able to assess how effective they have been.
“The third main issue driving the fleet market will be electrification, and the truth is there is no viable second-hand market for EVs. As a result, leasing companies are losing hundreds of millions of pounds due to unrealistic RVs and leasing rates will rise inevitably as a result. We expect plug-in hybrids to become more important as a consequence.
“And the fourth main driver is the increased need and awareness of driver and vehicle compliance. We will carry out 1.5 million licence checks in 2025, and companies we are talking to are looking at increasing the frequency of their licence checks – some commercial fleets to every month – as they seek to ensure that their operations are legally compliant across the board. Many are also asking us for walk-around checks for their vehicles through our Driver App, which is now integrated within our main DAVIS Fleet platform.
“And we still believe there is a huge grey fleet issue in the fleet market, even in some very large companies, as we have seen fleet licence checks increase by 20% but grey fleet by only 5%. There is a real naivety out there regarding the use of employee-owned vehicles that are driven on company business, and attitudes in this area really need to change.”
Enterprise Mobility
Andy Bland, Head of Business Rental UK & Ireland
“Business travel decision-makers will see shorter, local and domestic trips increasing as employees connect with teams and colleagues as much as with customers and stakeholders. Ensuring the travel policy embraces these shorter, sub-100-mile journeys is essential to ensure not only employees get a great travel experience, but that these trips are audited effectively to greater control and manage cost and emissions.
“This changing face of mobility places new demands on procurement to broaden RFP terms beyond one specific service and to embrace a wider spectrum of transport solutions and choices.
“Fleet and travel managers will see the best results where they partner with procurement, alongside their suppliers and partners. Taking a consultative approach with each expert, to better understand what emerging options are available, will fit their needs best for both today and tomorrow.
“The consulting process will also result in the exploration of social value, better understanding how companies can collaborate to improve communities where they work and operate.
“Partnerships enable innovation, re-imagining travel policies and strategies that take advantage of a connected, multi-modal industry. In addition to mobility and technology specialists, working with independent experts such as the Energy Saving Trust, for example, can help businesses better understand exactly how, when and where people travel for work, enabling them to solve ongoing challenges to further reduce carbon ‘leakage’.”
Mer Fleet Services
Natasha Fry, Head of Sales
“2025 is going to see a steady acceleration in fleet transitions. People are already starting to plan for change. There’s certainly a greater awareness of the need for electricity to power the fleets, and for some that will mean a power upgrade.
“Utilisation is the watchword for EV fleets, and that takes careful planning and design of charging systems from the ground up. Charging infrastructure configurations for fleet operators don’t start and end with the installation. It’s a continual process from the front-end to back-end. From analysing routes, traffic, driver behaviour, to designing and optimising the infrastructure through to planning for upgrades and replacing hardware as technology develops.
“The biggest development will, I believe, be in the technology. Fleet managers will move away from treating EV charging as a standalone solution. Fleet managers will want the driver to have a really simple experience when driving that electric vehicle, including charging.
“Charging will become integrated in the overall fleet management systems that drivers use day-to-day, from when they leave the depot to when they return. The driver will be directed to the bays that have got electric charging capability for optimal charging, possibly overnight when there’s off-peak energy available and integrate smart charging and dynamic load balancing. We’ll see huge advances in technology and software in 2025.”
Corpay including UK brand Allstar
Paul Holland, Managing Director for UK/ANZ Fleet
“There is no doubt that the move to electric is happening, but there is also another movement in the fleet sector that needs to be supported to flourish in 2025: the decarbonisation of existing petrol and diesel vehicles.
“Many businesses have already started the process of migrating their fleet to electric vehicles, but this isn’t an overnight job. The scales will eventually tip in favour of EVs that will ultimately one day take over, but at present many businesses still have a majority of their commercial fleet running on petrol and diesel.
“That doesn’t mean they are ignoring the need to run more sustainable operations and reduce emissions, however, but it is inevitably a slow process. Beyond procuring the vehicles, businesses must alter policies, practices, infrastructure and integration.
“As such, in the meantime there is a need to ensure that those petrol and diesel vehicles that remain in use are done so with minimal impact on the environment. They need support to drive more efficiently, buy fuel more effectively, plan better routes and streamline operations, and we’re committed to help them with this.”
Jaama
Richard Evans, Sales Director
“A large number of fleets will continue to change their outlook on the use of technology in 2025 as they come to terms with reducing vehicle and driver risks, mitigating unnecessary costs, achieving more work with a reduced headcount and keeping their drivers and vehicles safe and compliant.
“The number of apps in use directly with drivers will continue to play a major part in helping achieve greater fleet efficiencies. Providing drivers access to apps enables companies to self-service and send information electronically such as daily checks, defects, and accident information.
“However, we understand that fleets may need help to make sense of all the app noise and data and this is where Jaama can act as the central repository. Regardless of how many apps a customer has, we can be agnostic with our approach to data integration and seamlessly make sense of the disparate sources.
“This in turn enables fleet administrators and fleet strategy makers to proactively manage exceptional circumstances, and base strategic decisions on insights that can only be provided by a solution that knits everything together, such as Jaama’s Key2 platform.
“And while large areas of the commercial vehicle sector remain paper-based, Jaama will continue to help support the fleet industry in becoming a paperless society during 2025 as a means to further improve the safety, efficiency and compliance of drivers and vehicles.”
ChargeGuru UK
Denis Watling, Managing Director
“We’re witnessing a fundamental shift within the fleet landscape. EV-related regulations such as the ZEV mandate and sustainability considerations are pushing business owners to consider alternative ways of operating.
“Switching fleets to EVs is a no-brainer for many considering that in 2022 transport contributed 34% of carbon dioxide emissions. Road vehicles alone account for ~90% of domestic transportation emissions, making transportation the UK’s largest-emitting sector.
“In 2025, we should expect an increase in the installation of charging networks; whether that’s landowners selling or leasing parts of land for infrastructure, or businesses installing charging at their place of work. Convenience and access to EV chargers will be key.
“We’ll anticipate a continued increase in home charger installations as businesses aim to ensure efficiency. When transitioning fleets to EVs, businesses should provide employees with ‘at-home’ charging solutions in order to reduce running costs and reliance on public networks. It is crucial for us within the industry to support fleet transitions by simplifying the process and leveraging government funding opportunities.
“Though higher upfront costs and public charging still pose some challenges, the long term sustainability advantages and lower operating costs will hugely outweigh these sticking points leading to a continued shift in the fleet landscape throughout 2025.”
Venson Automotive Solutions
Simon Staton, Client Management Director
“The UK e-van market is going through a rather tumultuous period. Let’s characterise it as a coming of age – a time of remarkable growth and incredible potential, on the cusp of being fulfilled.
“Competition on pricing and aftersales is picking up, and the e-vans themselves are getting ever more impressive, as the world gears up to first slow, then reverse, global warming.
“With UK low, ultra-low and zero emission zones expanding, generating more than £1bn in fees and penalty charges since April 2019, according to new research by Peugeot, many predicted that e-vans would be the answer.
“The thing is, in the fast-paced 21st century, such shifts happen with disconcerting regularity. Five years ago, hitting 100-mile range was like finding the Holy Grail.
“It’s a strong bet that the key to widespread e-van adoption lies in good old carrot and stick – generous incentives to go green, along with escalating taxes on diesel. The difficulty comes in finding the winning combination, to enable all users to live their best e-van life.
“While the Plug-in Van Grant extension is more than welcome, as things stand, the ZEV mandate requires a three-fold sales increase to 16% of new sales this year. Over to you Prime Minister Starmer and Chancellor Reeves.”
ATS Euromaster
Mark Holland, Operations Director
Increased pressure on service, maintenance and repair (SMR) budgets will be a fleet hallmark of 2025, according to ATS Euromaster.
The tyre and vehicle services firm says inflationary pressures are driving up the cost of labour, parts and materials, making SMR more expensive at a time when fleet budgets are already under pressure.
Mark Holland, operations director, said everyone seems to be tightening their belts, as shown by lower change rates on brakes and a ‘de-tiering’ in tyre brand policy for some businesses. But he’s warned fleets not to sacrifice safety for a reduced SMR spend.
ATS advises fleets to be proactive in their approach to fleet inspections and management to minimise costly repairs and to plan ahead for SMR requirements. Fleets can also increase their ability to account for unexpected cost increases and the prospect of SMR inflation by being flexible and adaptable in budgeting processes.
Lytx
Damian Penney, Vice President EMEA
“Safety has always been a priority for commercial fleets but in 2025 it will become central to organisations striving to improve their ‘triple bottom line’ and measuring their impact on people and the planet as well as their profit.
“Some high targets have been set in other areas of transportation. London’s Vision Zero, for example, aims to eliminate all deaths and serious injuries from the city’s transport network. If fleets are to achieve similar goals they will need to engage even more closely with their drivers.
“The Royal Society for the Prevention of Accidents (RoSPA) states that human error is a factor in almost all road accidents, so improved coaching, coupled with technology to support drivers, will be essential. Such technology includes traditional telematics solutions that can detect factors such as erratic driving or harsh braking. When it comes to driver safety, however, intelligent video now plays a crucial role.
“Dashcams equipped with artificial intelligence are able to identify risky behaviour such as mobile phone use or eating and drinking at the wheel. Repeated instances of this type of behaviour can then trigger the transmission of video clips to managers, allowing for highly targeted and effective driver coaching. Perhaps even more importantly, these cameras also prevent incidents in the first place. If distracted behaviour is detected, the driver is alerted by a bleep and/or a flashing light, allowing them to self-correct in the moment.
“Developments such as these provide commercial fleets with a great opportunity. Safer driving not only protects drivers and other road users but also reduces fuel consumption and vehicle wear and tear. By driving down the cost of repair and replacement, fleets can boost profitability and play a role in reducing carbon emissions.”
Easee
Adam Rodgers, UK and Ireland Country Director
“In 2025, we will hopefully see a transformation in the UK’s public EV infrastructure in terms of user experience and reliability.
“This, coupled with the UK’s growing network of public charge points, should encourage a confidence boost from car and van fleet operators. For fleets travelling through regions with limited public charge points, the current infrastructure and reliability concerns can be a barrier due to the potential disruption this poses to business operations.
“The government mandate for 99% reliability of rapid charge points and 24/7 helplines coming into effect will be crucial, as will continued investment in the public infrastructure for a network that can support fleets even in remote locations.
“Many businesses are facing rising financial pressures as we head into 2025 and while EVs are more cost-efficient to run, there’s the initial upfront cost which can be a challenge. However, in 2025 more EVs should begin to become available on the second-hand market. Sales of used battery electric vehicles increased by 57% year-on-year in Q3 2024, achieving record market share.
“This will hopefully make EVs more financially viable for some fleets. While these won’t qualify for the full government tax relief available on new EVs, registered businesses can receive capital allowance on the purchase price at 18% to further improve affordability. Maintenance of current financial incentives and an expansion of these would be welcome to make EVs more affordable to a broader range of business.”
