More than three quarters (78 per cent) of fleet managers aim to convert their entire fleet to electric vehicles (EVs) before the government’s ban on the sale of new petrol and diesel cars comes into effect in 2030.

That’s according to new research by Churchill Expert, Direct Line Group’s flexible fleet insurance specialist. Petrol and diesel vehicles currently make up two-thirds (65 per cent) of fleets, with 16 per cent being hybrid and under one-fifth (19 per cent) being EVs.

Fleet managers expect this breakdown to change in two years with the proportion of EVs increasing to 37 per cent and hybrid vehicles to 20 per cent – a total of 56 per cent of fleet vehicles being either electric or hybrid. Petrol or diesel vehicles are expected to make up 44 per cent – a reduction of 21 percentage points in two years.

Several factors are impacting fleet managers’ general operations, as well as their ability to transition vehicle fleets. These include the increasing popularity of EVs (70 per cent), the rise in the Government’s green initiatives such as Ultra Low Emission Zones (ULEZ) (77 per cent) and greater availability of salary sacrifices schemes (70 per cent).  This transition comes as salary sacrifice schemes become increasingly available and supply chain issues remain a challenge for fleet managers.

Fleet managers’ insurance needs will also evolve as people transition to EVs. Nearly half (49 per cent) want cover against damage to charging points and equipment, 10 per centage points more than those who are looking for low-priced premiums

Despite the challenging economic environment, the findings also reveal that 85 per cent of fleet managers are optimistic about their company’s future over the coming two years. While the majority are impacted by the rising cost of living (92 per cent) and increased energy or fuel costs (97 per cent) optimism in the industry remains remarkably robust.

Nicola Richmond, head of Churchill Expert Flexible Fleet Partnerships, commented: “Despite the odds, fleet managers continue to display inspiring levels of optimism and ambition in today’s market. As the increased cost-of-living impacts fleet drivers, it’s reassuring to see a continued rise in the demand for electric vehicles and ongoing plans to fully convert vehicle fleets by the end of the decade. This will be in time for when all new petrol and diesel cars and vans are set to be banned from sale in 2030. For those in the process of converting their fleets to electric, it is important to have the right fleet insurance provider to support you through this journey.”