Charged Fleet Logo

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 Electric Vehicles

Overview of fast-charging depot in downtown Santa Barbara with panoramic view of coastal mountains and ocean in the background.
Chargingby News/Media ReleaseJune 18, 2026

Electrify America Opens EV Fast Charging Station in Southern California

The large-format depot features 20 hyper-fast chargers capable of delivering 350 kilowatts and is backed by a powerful battery energy storage system.

Read More →
Photos of Laolu Adeola and Martin Romjue separated by large green and white headline text.
Chargingby Martin RomjueJune 17, 2026

Charging Gaps That Impede Electric Fleets

Find out why charger breakdowns can be so misleading, costing fleets time, money, and usage.

Read More →
Rendering of electric vehicles charging beneath a solar-panel canopy, illustrating Inspiration Mobility Group’s acquisition of Electrada assets to expand commercial fleet electrification services.
Suppliersby News/Media ReleaseJune 17, 2026

Inspiration Mobility Acquires Key Electrada Assets

Inspiration Mobility Group has acquired select assets of Electrada, adding the fleet electrification provider's team, technology, and charging infrastructure development capabilities to its energy management business.

Read More →
Ad Loading...
Vertical dark blue graphs showing new and used EV sales

Used EVs Strengthen Overall Electric Vehicle Market

The latest sales data point to several reasons for the divergent trends in new and used EVs that can factor into fleet cycling decisions.

Read More →
Man behind a steering wheel driving hands-free in a Lucid Gravity on the freeway.

Lucid Adds Hands-Free Highway Driving, Software Updates To Gravity SUV

Hands-free drive assist makes highway driving more comfortable while keeping drivers attentive to the road.

Read More →
A cream-colored flat vehicle platform that looks like the bottom half of a truck.

Harbinger Creates Hybrid-Electric Unmanned Vehicle Platform for Defense Use

The platform is based on the company's medium-duty plug-in hybrid chassis, which is also used in commercial vehicles.

Read More →
Ad Loading...
A schematic photo of a dark blue Mitsubishi Eclipse Sportback in a soft gray structural background evocative of a futuristic parking deck.

Mitsubishi To Debut All-Electric Eclipse Subcompact For North American Market

The 2027 Mitsubishi Eclipse Sportback is a small SUV that will go on sale by this fall.

Read More →
A red electric sports car positioned diagonally against a white gasoline coupe, like two fighters ready for a rivalry.
Operationsby News/Media ReleaseJune 5, 2026

Turo Launches Electric Vehicles vs. Gas Trip Cost Calculator

New free tool helps travelers compare fuel and charging costs side by side before they book, aimed at more affordable summer road trips.

Read More →
A chart showing average energy savings from using an EV.

EV Energy Savings Mount As Volatile Gas Prices Soar

Electric vehicle owners, including fleets, are saving increasing amounts by driving EVs instead of internal combustion engine vehicles.

Read More →
Ad Loading...
Vehicle inspector looking down the left side of a gray vehicle for any damage.
Hybridsby News/Media ReleaseJune 2, 2026

Hybrid Vehicle Collision Claims Hit Record High In Q1 As BEV Claims Flatten

The number of hybrids on the road is growing, indicating that overall electrification is evolving.

Read More →