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.

Rental shortages are currently a regular topic of conversation among AFP members, with widespread discussions about the difficulties being faced. It’s a situation that is showing few signs of improvement and may even get worse before it improves. Rental companies – like everyone else – simply can’t access new vehicle supply in the quantities they need.

A net 27% of organisations predicting expansion of their fleet operations is a strong indication of confidence in the sector. This is comparable to the 29% figure seen in 2021 and stronger than the 21% recorded in 2020. Clearly, businesses expect a strong rebound in 2022.

Is the transition to EV for many fleets is being done far too early, and will it have significant cost and operational implications? Total Motion's view on the charging network is that this so far behind demand that it foresees large queues and increased roadside failures from running out of charge.

New car prices having risen (47% of consumers) is the number one factor mentioned behind a developing trend for buying used rather than new, followed by not being able to afford a new car (25%) and used cars offering better value than new (24%).

It is looking increasingly likely that the pre-pandemic automotive market we all knew may never return as the sector continues to be hit by headwinds. Whether it is a growing number of manufacturers switching to the agency model or ongoing supply chain disruption, the UK’s automotive sector looks set for short to medium-term volatility and may well emerge from this looking completely different to pre-pandemic levels. 

The latest figures from the Society of Motor Manufacturers and Traders saw new LCV registrations decreased by 27.6% in March to 40,613 units. Following the fall in the important plate change month of March, the market is now 23.6% below last year.