Diesel reliance reducing faster than expected

Contracthireacar.com customers are reducing their reliance on diesel models faster than expected, says the leasing company.

Electric cars can be a very effective way to save you money on motoring (Image: Go Ultra Low)

Electric cars can be a very effective way to save you money on motoring (Image: Go Ultra Low)

It carried out analysis of its own risk fleet following the research published by Arval for its 2016 Corporate Vehicle Observatory Barometer, which points to a 5% overall reduction in UK fleets’ use of diesel by 2021.

Arval’s study forecasts a 12% reduction in diesel use for larger fleets and a 1% reduction for smaller fleets of 40 or fewer vehicles, the latter accounting for the majority of Contracthireacar.com’s client base.

During the period January to July 2015, diesel made up 86% of car leasing deals written by the firm, with petrol on 12.57%. Alternative vehicle fuels such as hybrid and electric accounted for 1.42% of orders.

A year on, Contracthireacar.com data covering the period January to July 2016 stands at 79.29% diesel usage, with petrol having risen to 17.61% and alternative fuels having increased to 3.10%.

Craig Davy, business development manager for Contracthireacar.com, said: “With influencing factors ranging from the Volkswagen headlines, fuel price trends, advancements in turbocharged petrol engines and the EU leave result, to new London Mayor Sadiq Khan likely to introduce a T-Charge to deter older diesels and bring forward the city’s ULEZ, it’s no surprise that we’re seeing the switch to petrol and particularly hybrids and electrics accelerate.

“ULEV and EV orders doubling is to be expected but the 5% switch back to petrol within just a year is somewhat surprising.”

Read more: Fleet News

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