Driving Today's Fleet Market
Confused by P11Ds and BIKs? Is CO2 more important than mpg? And who’s buying what in the SME fleet market? Follow Kia’s handy guide for all you need to know
With the economy picking up, company car sales have been growing for just over a year now as businesses start to increase their recruitment as well as revert to a more typical replacement cycle. This makes it the perfect time to take a look at investing in and running a successful business fleet.
New research from Kia shows this
economic expansion is likely to
continue, with the majority of the
businesses it recently surveyed
expecting to see slight or significant
company car growth in the near
future. To ensure this continues, the
additional budget for these vehicles
needs to be wisely spent and the
fleet efficiently managed.
To help run a more effective fleet and keep your drivers on track, Kia has produced this handy guide.
SME fleets typically divide into two
groups; those running job-need cars
and those where its drivers have
a level of choice about the type of
vehicle and model that they opt
Those businesses where the car is a necessity of the job have an average of 106 employees, a turnover of between £2-10m and are often manufacturers or consultancy operations. They run, on average, a ten car fleet, but also often operate some LCVs or trucks. Kia’s research reveals that these businesses have a very positive outlook and 86 per cent of these companies expect either slight or significant business growth. Drivers in these fleets also cover an average annual distance of 23,014 miles.
The requirements of the business also mean that reliability, comfort, practicality and value are the overriding criteria for purchase.
In small to medium size companies where there is driver choice there are some marked different requirements and identifiers.
Like the job-need group, the typical turnover is still between £2-10m, but the average number of employees stands at 133 with a fleet size of eight cars, and many of these firms will also often have commercial vehicles.
The business growth outlook of these, often younger, companies is still high at 71 per cent. Interestingly, these firms frequently spend a far greater amount of time managing their fleets, possibly because of a greater mix of vehicles, than those companies running job-need fleets.
The priority of these businesses in terms of their vehicles is more focused on the ease of ownership, including the latest in-car technology and vehicle comfort. This is perhaps because the drivers cover even higher distances with an average of 24,776 miles per year.
What’s clear from Kia’s research is that both groups appreciate help running their vehicles, which is exactly what this guide to fleet management is designed to do. So to find out how to improve your business transport, read on