Company cars, after tax squeeze 4 out of 10 companies decide to extend contracts

Following the entry into force of thenew legislation, which from January 2025 provides for a penalising tax regime for employees and companies that choose petrol- or diesel-powered cars, four out of ten fleet managers have chosen to postpone the renewal of their fleet; the vast majority plan to change the composition of their fleet in the medium term and expect large cost increases and complaints from employees. A grey future looms for full hybrid cars, which will be affected by the new regulations. This is what emerged from the instant survey entitled 'Caro Fisco ti scrivo' ('Dear Taxation I write to you'), presented during the eleventh edition of Fleet Motor Day, the annual event dedicated to company fleet managers promoted in Rome and at the Vallelunga racetrack by LabSumo (a spin-off of Sumo Publishing specialising in the promotion of studies, analyses, events and training initiatives on corporate mobility issues), with the participation of the Top Thousand Observatory and under the patronage of the Aniasa and Unrae associations.

The study involved a sample of 98 fleet and mobility managers managing a total of about 83,000 vehicles. The aim of the analysis was to investigate how the new rates on fringe benefit company vehicles are concretely impacting their mobility choices and those of their drivers. The analysis shows how the entry into force in January 2025 of the new regulations has prompted more than 4 out of 10 companies to postpone fleet renewal, opting for an extension of existing contracts, while 11% have renegotiated with the rental company to change the car or the contracted motorisation in order to choose a more convenient one.

The survey also took a snapshot of what changes the new regulations will bring about in the medium to long term. In this case 6 out of 10 fleet managers expressed a willingness to change their car list and car policy in the coming months, 2 out of 10 will leave it unchanged and 1 out of 10 is ready to ban thermal cars. The answers of fleet and mobility managers appear less polarised when asked to predict what this choice will entail on the market: around 25% expect a sharp increase in rental costs, for 23% driver complaints will grow, and for 20% charging costs will explode. Only 8% of the sample believe that this decision will finally give a strong impetus to the electrification of fleets.

A final focus was devoted to the future of full hybrid cars, considered by many to be the most concrete and direct route to decarbonising the fleet, but heavily penalised by the new regulations. One fleet manager in three has no doubts, they will exclude them from the new car lists, 22% of respondents will extend their existing contracts as long as possible to escape the effects of the regulations and 22% will still keep them in their fleet. "Within a climate of great uncertainty fuelled by the regulations on company car fringe benefits, companies, as shown by the results of the survey involving almost 100 fleet and mobility managers, will reduce their investments in employee welfare to support the higher cost of cars, by +20-30%," noted Luca Zucconi, a member of LabSumo's Scientific Committee.