July fleet lessons: diversify to cut TCO

July’s UK market confirmed two parallel realities. On the one hand, electrified vehicles now make up a third of new registrations. On the other, Tesla’s dramatic 60% sales drop shows just how quickly brand fortunes can change. For fleet managers, the message is less about market headlines and more about procurement resilience.

Fleet-focused Insights

• One in three new cars is now electrified

For fleets, this means EVs are no longer a niche pilot — they’re mainstream, with BEVs and PHEVs representing viable volume choices.

• Tesla slump highlights supply risk

A 60% fall in deliveries shows that over-reliance on a single OEM can expose fleets to price volatility, lead-time disruption and uncertain residual values.

• Chinese entrants rising fast

BYD quadrupled UK sales in July. While new, these brands may offer competitive whole-life costs and shorter lead times, but residual value forecasting remains untested.

• Policy uncertainty still bites

With grants covering only a fraction of models, decision-makers must run scenario planning — ensuring fleet TCO still works if incentives shift or disappear.

• TCO strategy must adapt

Fleet electrification is no longer about “if”, but “how” to diversify, hedge supply risk, and optimise charging strategies to secure cost savings over the vehicle’s lifetime.

For fleets, July’s data is not just a market snapshot — it is a reminder to diversify procurement, model whole-life costs carefully, and avoid locking TCO performance to the fortunes of any single OEM.