Vehicle supply tempers economic recovery
A shortage of vehicles, particularly vans, could hinder the economic recovery.
This is according to the BVRLA’s latest Business Impact Survey, which found widespread optimism within the leasing industry for continued growth, tempered by concerns about vehicle supply.
The survey found that 90% of respondents expect the economy to improve in the next six months, while 70% anticipate improvements for the leasing sector and 75% are expecting to see increased demand across the rental sector as the easing of restrictions unfold. Further, 71% expect to increase their fleet size during the remainder of 2021.
This is in stark contrast to the figures reported in the association’s February survey, which revealed that only 54% anticipated fleet growth this year.
However, the industry remains very concerned about vehicle supply. Over 90% of respondents suggest that the current supply of ICE vans was a barrier to meeting the needs of customers and 41% say the barrier was extreme. To further compound the problem, 84% think the supply of vans to their organisation is getting worse.
BVRLA chief executive Gerry Keaney said: “The van parc is growing exponentially at a rate double that of cars, yet the supply of battery electric vans is an acute problem. Although we have seen an increase in the number of makes and models coming to market, there is a particular dearth of vans capable of long ranges or towing.
“Vans play a vital role in the UK economy with one in ten workers relying on a one to do their job. A special focus on vans is needed if this sector is to achieve parity with the more developed electric car market and the BVRLA will be making recommendations to government.”
