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Fleets embrace emerging brands as choice lists grow

 Published 21st May 2024
Company Fleet 

Nearly 70% of fleets are adopting or considering newly launched car brands for their choice lists amid the transition to electric vehicles, new research shows.

The challenge to established brands was revealed in the 2024 Mobility Observatory from Arval, one of Gateway2Lease’s official partners.

It found that 25% of fleets are already adding new market entrants to their choice lists, while 23% think they will do the same in future. A further 21% expect to include new brands after they become more established.

The potential for new brands to build market share has been proven by Chinese automotive giant SAIC, which took on the ailing MG brand and transformed its fortunes; MG now has more than 4% market share, ahead of established giants including Peugeot, Skoda, Renault, MINI, Seat, Honda and Citroen.

New brands include BYD, GWM Ora and KGM, in addition to Tesla.

In total, non-traditional brands accounted for 7% of the UK new car market for the year to the end of April, with nearly 50,000 sales. Their combined market share would make them second only to the UK’s best-selling car brand, Volkswagen.

This year, industry title Fleet World recognised BYD with a Rising Star Award at its annual Fleet World Great British Fleet Awards.

Shaun Sadlier, head of Arval Mobility Observatory in the UK, said: “It really does feel as though electrification is redrawing which manufacturers are going to be potential players in the fleet sector in the coming years.

“The door also appears to be very much open for others to make their mark if they can provide the kind of high quality, attractive vehicles with strong running cost profiles that the fleet sector demands.

“Driver choice used to be premium; now they are more open to looking at other manufacturers than ever before.”

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