Auto Rental News
MenuMENU
SearchSEARCH

Association Of Fleet Professionals Warns Against PHEV Fleet Policies

The chair of the Association of Fleet Professionals (AFP), a UK-based organization representing the interests of fleet managers, believes fleets should skip plug-in hybrid models on fleet policies and focus on pure electric models.

by Ralph Morton
December 2, 2021
Association Of Fleet Professionals Warns Against PHEV Fleet Policies

BMW 3 Series PHEV charging.

BMW

3 min to read



The chair of the Association of Fleet Professionals (AFP), a UK-based organisation representing the interests of fleet managers, believes fleets should skip plug-in hybrid models on fleet policies. Instead they should concentrate on pure electric models.

Association of Fleet Professionals

Speaking exclusively to Global Fleet Management, chair Paul Hollick explained that while PHEVs were decent vehicles if they were used extensively on the electric cycle - by as much as 65% - but otherwise he said, “you’re carrying around a heavy lump of battery that’s adding to fuel consumption and costing much more to run than predicted.”

Ad Loading...

Hollick continued:

“At the AFP many fleet managers who have put PHEVs on fleet have found that they were costing them more in terms of fuel and charging because they were using OEM figures - which suggest very impressive consumption based on WLTP testing.

“And that's the issue.

“The problem with PHEVs is that it very much depends on the usage model as to what the vehicle achieves in reality. We’ve seen a few fleets that have handed back PHEVs to go fully electric instead.”

Hollick added that it was also important for fleet managers to ensure that PHEVs were being fully charged as often as possible through the use of Approved Electric Mileage rates for the vehicle’s official electric mileage range, rather than using the higher fuel reimbursement rate. These are rates that fleet drivers can charge per mile without incurring any personal tax liability.

Ad Loading...

“For example, if a driver covered 100 miles on business, in say a BMW 330e with a 37-mile electric range, then the first 37 miles of that journey would be reimbursed at the Approved Electric Mileage rate of 5p per mile, while the rest of the journey would be reimbursed at the higher rate for petrol cars, which is currently 15p for a petrol engine of that size.

“We’ve seen many fleet managers now swapping from just paying a standard fuel rate to reimbursing with the electric rate for the first 30 miles to encourage proper use of the battery.”

Hollick’s warning comes as the popularity of PHEVs is possibly plateauing.

According to market analyst Matthias Schmidt, reporting in the October issue of the European Electric Car Outlook, PHEVs grew by just 3% year-on-year, while Germany witnessed the first fall in its PHEV market for 26 months.

In comparison, the pure electric market continued to grow with volumes rising by 43% year-on-year, in a total passenger car market decreased by 30%.

Ad Loading...

Schmidt added:

“It will be crucial to monitor if this PHEV impact is solely the result of the semiconductor crisis, or if it’s the result of an underlying trend that’s seeing a shift away from PHEVs towards BEVs.”

Hollick was far more bullish on the issue, however, adding,

“Everyone’s into battery electric vehicles at the moment driven by the tax advantages. In the main, fleets have a good steer on the data and are managing that data to reduce costs. They are actively telling their drivers to go full electric. The only difficulty at the moment is over supply.”

Originally posted on Automotive Fleet

More Green Fleet

Sid on stage at ICRS in front of four white chairs.
Rental Operationsby Martin RomjueJune 2, 2025

Survey: New Tech Tools, Sharper Pricing Plans, and Focused Service Can Improve Rental Car Industry

ICRS 2025: What are key trends, challenges, and opportunities confronting rental car operators this year?

Read More →
Rental Operationsby News/Media ReleaseFebruary 13, 2025

Green Motion Adds South Korea to Its Asian Service Region

The first Green Motion locations in South Korea are scheduled to open in key travel hubs during the coming months, including Seoul, Jeju, and Busan International Airports.

Read More →
Image of a sign that says "Electric Vehicle Only" in front of charging vehicles.
Green Fleetby Elora HaynesFebruary 10, 2025

Federal Highway Administration Halts EV Charger Funding, Delaying National Expansion Plans

The FHWA has rescinded funding for the NEVI Formula Program, delaying nationwide EV expansion as policies undergo federal review.

Read More →
Ad Loading...
Green Fleetby Martin RomjueJanuary 22, 2025

Operator Outlook: EVs Slow to Charm Rental Car Industry

2025 ARN Fact Book: Electric vehicles still must prove their reliability and worth in a fleet sector that puts rolling metal on the ground 24/7 for a demanding customer base.

Read More →
Green Fleetby News/Media ReleaseJanuary 21, 2025

Green Motion Opens Franchise in Germany’s Most Populous State

The rental car outlet brings its hybrid and electric vehicles and sustainable approach to business to one of Europe’s most economically powerful regions.

Read More →
Fleet Acquisitionby News/Media ReleaseJanuary 14, 2025

U.S. EV Sales Push to Record 1.3 Million in 2024

Domestic sales of EVs benefitted from strong incentives from the automakers, excellent lease deals, and federal and state incentive programs.

Read More →
Ad Loading...
Green FleetJanuary 9, 2025

Electric Vehicles Still Destined to Succeed

2025 ARN Fact Book ACRA Column: The technology, lower costs, and energy improvements of future electric vehicles will make them too good to turn down. Rental fleets should prepare now.

Read More →
Rental Operationsby News/Media ReleaseJanuary 8, 2025

4 Global Trends in Carsharing for 2025

Despite operational challenges and questions, the global car-sharing market continues growing and will likely double during the next decade.

Read More →
Rental Operationsby News/Media ReleaseDecember 18, 2024

Green Motion Appoints Master Franchise for New Zealand

The provider of green vehicles expands its sustainable car rental options further into the APAC region.

Read More →
Ad Loading...
Fleet Acquisitionby News/Media ReleaseOctober 11, 2024

EV Transaction Prices Ease Down in September

Electric vehicle sales also mark another record in Q3, thanks to higher incentives and more choices.

Read More →
Ad Loading...