Nearly 1/3 of Fleets Surveyed Say Semiconductor Shortage Hinders Vehicle Acquisition

The ongoing semiconductor shortage has impacted new vehicle acquisitions for almost a third of fleets (31%), according to new research from the Arval Mobility Observatory, a research and industry information exchange platforms in the fleet and mobility sector.

An independent survey of 8,600 decisions makers in more than 30 countries across the globe revealed that 17% of respondents have been affected by supply issues across electric vehicle (EV), petrol and diesel vehicles, while 8% have seen an effect on EVs only and 7% just on petrol and diesel vehicles.

“The findings here indicate just how widespread the impact of new vehicle supply problems have been on fleets over the last three years,” commented. Shaun Sadlier, head of Arval Mobility Observatory in the U.K.

To mitigate the shortage impact, almost three-fourths (74%) of survey respondents reported extending the life cycle of current vehicles.

However, as Sadlier pointed out, extended lifecycles affect a fleet’s ability to ensure cars and vans are kept in a safe and efficient condition. “Older vehicles are unavoidably more prone to breakdown and need more attention in order to remain roadworthy, something that places demands on fleet managers and providers of service, maintenance and repair.”

Survey participants identified other mitigation strategies:

• More than half (51%) are speeding up fleet electrification.
• 25% are acquiring used rather than new vehicles.
• 21% are expanding selectors to include a wider range manufacturers.
• 11% are turning to other forms of mobility.

“Buying or leasing of used vehicles as a substitute for new is also a popular solution, as is extending choice lists in order to include manufacturers who can offer better supply,” Sadlier said. When fleets have been unable to obtain vehicles from established sources, they have become more creative in sourcing needed cars and vans, he added.

“Overall, it is not an exaggeration to say that the whole management of vehicle choice, acquisition and maintenance has been affected by these shortages ... It’s brought about fundamental change,” Sadlier contended.

However, an unexpected positive effect has been that more than half of fleets say supply issues have hastened the transition to electrification.

“While there has been an increase in the average delivery time for all fuel types, the lag for EVs has been significantly less, with many manufacturers choosing to concentrate production on this type of vehicle,” Sadlier observed. “Certainly, Arval UK reports that many of the businesses with which it works are effectively skipping a planned replacement cycle to move towards full electrification sooner than originally intended.”

More information about the Arval Mobility Observatory and the 2023 Barometer findings is available on the organization’s website.