UK fleets predict diesel dominance will disappear within five years

September 13, 2016

More than half of UK fleets are predicting a major shift to away from diesel to petrol and alternatively-fuelled vehicles by 2021. According to a Fleet News poll, more than half of respondents believe diesel dominance of the company car market could disappear by 2021. By 2026, 81% of fleets predict a swing to diesel alternatives. However, although fleets are expecting a significant change in the market, there is unlikely to be any change within companies without alterations to taxation. Currently, the vast majority of fleet registrations are diesels because they incur the lowest tax bill under the government’s carbon dioxide-based company car tax system. If fleets were to move without changes to legislation, they and their drivers would potentially face higher tax bills. Without legislation, any shift is likely to be limited to public sector fleets which introduce changes for public health reasons amid concern over the long-term effects of nitrogen oxide emissions from diesels. These concerns have already led to The City of London Corporation and Camden Council banning new diesels from their procurement process if there is an alternative.

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March 31, 2017

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