The British company car market is a huge driver of new car sales. Retail new car sales so far in 2017 make up 44 percent of the market: the rest are either fleet or business car sales, showing how crucial the company car sector is to vehicle manufacturers.
And despite some concerns that future developments such as ride sharing or multi-modal solutions will lead to a demise in the popularity of the company car, fleet drivers themselves suggest the sector isn't going anywhere. Indeed, in a recent survey, a whopping 89 percent of company car drivers said they would be unwilling to give up their cars.
Even when presented with a full range of options including ride sharing, car sharing, cash mobility budgets or multi-function mobility cards, a mere 11 percent said they would either 'certainly' or 'probably' consider giving up their fleet car. Fleet car expert Arval, which carried out the survey, said the figures "show just how much the company car is ingrained into UK business activity".
Head of Arval analysis Shaun Sadlier said the vast majority of businesses simply don't see a viable alternative to the company car. It is "a cost-effective, flexible and efficient transportation – as well as serving as a highly successful employee incentive".
The figures don't mean that fleets are unwilling to try out other methods, though. 52 percent of respondents said they'd consider giving an alternative a trial: 29 percent may try out car sharing, for example, and 42 percent might trial ride sharing.
However, "the enthusiasm that remains for the company car does not mean that businesses are not actively offering, considering or trying alternatives, simply that their application is quite limited for most mobility needs".