Four in 10 van fleets expect to increase their vehicle numbers in 2024, although delays in LCV conversions remain a brake on progress.
That’s one of the findings of the BVRLA’s new Industry Outlook report – which also includes exclusive end-user fleet research shared by 360 Media Group.
Issued today (6 December 2023) at the BVRLA’s Outlook Conference at the British Motor Museum, the report looks at the fleet growth predictions for the coming year.
On the end-user van fleet side, the headline findings from 360 Media Group reveal that the improving availability of vans is set to drive fleet growth in the next 12 months, with 45% of fleets reporting positive developments in supply.
Research among 200 fleet decision-makers by the group reveals that van fleets expect 17.6% of their new orders will be battery electric models. However, more than one-third of fleets identify the complexity of transitioning to zero emission models as a key pain point.
Cost control remains key, with 42% looking to improve their efficiency through optimising data, although 36% also cite the processing of this data into meaningful insights as a pain point.
The report follows the publication this week of latest LCV sales figures, which show registrations have risen for the 11th month in a row but battery electric vans (BEVs) suffered a second month of decline.
On the rental and leasing sector side, the BVRLA report reveals members are predicting growth across virtually all market segments and feeling more confident about business conditions.
Results from the report present a positive outlook for virtually all key business metrics compared to the same time last year. Supplies of new cars and vans are both expected to increase next year, with 43% of respondents expecting car supply to be back to pre-Covid levels by the end of 2024. Hand in hand with supply returning, BVRLA members anticipate better demand in the new year too, across consumer and business sectors.
That optimism towards demand is replicated when looking at the prospects of products and services. Personal contract hire (PCH) and Business Contract Hire (BCH) – for cars and vans – are both expected to be stronger in 2024 than they were in 2023.
Gerry Keaney, BVRLA chief executive, said: “All indications are that our members enter next year stronger and optimistic about the growth opportunities that will emerge. External factors that dictate market activity are all expected to improve. Vehicles are being delivered with greater frequency and the cost of finance is much more favourable that it was. Growth is back on the agenda.”
The BVRLA’s full Industry Outlook Report is available online.
