Fleet survival in 2025: Mastering costs, compliance and the road ahead
Fleets are navigating mounting challenges this year
Without the right strategies in place, businesses risk financial strain, inefficiencies and compliance setbacks.
Rising costs, stricter regulations and ongoing supply chain disruptions are driving up expenses and complicating day-to-day operations.
The good news? Smart decisions made today can help turn these challenges into opportunities for long-term success.
Rising costs, stricter regulations and ongoing supply chain disruptions are driving up expenses and complicating day-to-day operations.
Why agility matters in fleet leasing
Economic uncertainty, supply chain volatility and changing workforce patterns mean traditional leasing models may not always offer the flexibility businesses need.
In some cases, long-term contracts can lock fleets into costly agreements that fail to align with evolving operational demands.
Flexible leasing and rental can provide a smart alternative. Shorter-term agreements offer financial agility, allowing businesses to scale their fleets up or down without long-term commitments.
With hybrid working models reshaping requirements, companies can better match vehicle availability with actual usage.
For those trialling EV adoption, flexible leasing can be particularly advantageous. It allows businesses to assess electric vehicles without committing to long-term finance agreements, mitigating risk while keeping pace with rapid technological advancements.
Salary sacrifice: a cost-effective EV strategy
Salary sacrifice schemes remain a highly attractive option for fleets, even with the adjusted 3% Benefit-in-Kind (BIK) rate for EVs from April.
While slightly higher than before, this rate is still significantly lower than that of petrol or diesel vehicles, offering substantial tax savings for employees.
This makes EVs an attractive employee benefit, supporting businesses’ recruitment and retention efforts.
Traditionally, company cars have been a key tool for attracting talent. Without them, younger employees and those without a strong salary, credit or insurance history can struggle to obtain an appropriate vehicle.
Salary sacrifice offers an affordable route to low-emission vehicle ownership, while helping employees to manage personal finances more effectively.
For employers, salary sacrifice schemes reduce National Insurance contributions while reinforcing sustainability commitments. With the lower running costs of EVs and continued tax advantages, salary sacrifice remains one of the most cost-effective fleet strategies available.
Regulatory pressures: the sustainability disclosure imperative
Sustainability reporting is no longer optional – it is becoming a business necessity. The UK Sustainability Disclosure Requirements (SDR) are set to take effect from 1st January 2026, aligning with global reporting frameworks to improve transparency on corporate climate impact.
Key regulatory milestones include the expected publication of the UK Sustainability Reporting Standards (UK SRS) this spring, followed by final government endorsement later in the year.
By 2026, new reporting requirements will apply to businesses needing to disclose sustainability performance.
Many organisations struggle to capture accurate CO2 emissions data, making compliance difficult.
Fleet Operations’ MOVE platform automates emissions tracking, eliminating reliance on manual driver inputs and ensuring effortless Scope 1 and 2 emissions compliance.
Beyond meeting regulatory requirements, sustainability reporting is an opportunity to future-proof fleet operations, align with investor expectations and enhance corporate reputation.
How to keep rising SMR costs under control
Service, maintenance and repair (SMR) costs are soaring due to inflation, supply chain disruptions and fluctuating fuel prices.
Parts and labour costs have risen significantly, while advanced vehicle technology requires specialised repairs, further driving up expenses. Fuel price volatility is another challenge, making it critical for fleets to optimise their cost-control strategies.
A cost-effective approach to maintenance is essential.
In many cases, for example, pay-as-you-go (PAYG) maintenance models can deliver savings over traditional contract hire maintenance packages. Fleet Operations’ PAYG maintenance service consolidates costs into a single monthly invoice, improving budget predictability and cost efficiency.
Preventative maintenance is also key. Fleet Operations’ MOVE Driver Companion App streamlines vehicle inspections, allowing drivers to flag potential issues – such as tyre wear or fluid levels – in real-time.
Identifying and resolving these problems early can help fleets avoid expensive repairs and costly downtime.
The evolving EV market: challenges and opportunities
While EV adoption continues to grow, significant challenges for fleets remain. The Zero Emission Vehicle (ZEV) mandate requires that 16% of new vans sold this year must be electric, with this percentage increasing year-on-year until 2035.
However, uncertainty around government policy and operational restrictions for eLCVs complicates widespread adoption.
A key issue is the classification of 4.25-tonne EVs as HGVs, which subjects them to stricter MOT and driver hour regulations. Until this is resolved, some businesses may instead opt for diesel alternatives.
The used EV market is also experiencing instability, with steep depreciation affecting leasing rates. A robust second-hand EV market is essential for long-term fleet sustainability. Without additional government incentives or policy clarity, adoption rates may slow.
Public charging costs present another challenge, with rates significantly higher than domestic tariffs due to VAT disparities. Addressing this imbalance would improve cost efficiency for fleets making the electric transition.
Despite these hurdles, businesses can still navigate EV adoption and their move to a more sustainable fleet successfully.
Strategic guidance, cost-effective transition plans and duty cycle optimisation will be key to making EVs and fleet sustainability a viable long-term investment.
Expert guidance for smarter fleet management
The pace of change in the world fleet management is relentless.
From regulatory shifts and cost pressures to emerging vehicle technologies, businesses must adopt a proactive approach to their fleet strategies – but staying ahead of the curve calls for expert insight.
Fleet Operations is the UK’s largest independent fleet and mobility management specialist, delivering cost-effective, sustainable and risk-managed solutions. We help businesses cut costs, transition to electric and alternative fuel vehicles, and optimise fleet performance.
Our MOVE platform and Driver Companion App streamlines operations, offering a centralised hub for vehicle and safety management, compliance tracking and driver support.
Whether you need strategic consultancy, sustainability planning, multi-bid leasing, supply chain management, data consolidation or risk mitigation, we will tailor our services to fit your business needs.