As 2025 kicks off, we caught up with our CEO Graham Lesslie to get his view on the fleet management sector and what the year ahead has in store. Graham covers a wide range of topics from the pace of transition to electric vehicles, why 2025 could be the year of both the electric van and the used EV, where he sees the growth coming from in the fleet management sector and how he sees Artificial Intelligence becoming a useful, innovative and exciting development for businesses and customers alike.
How has the trading year been so far?
Although market conditions have been challenging this year, we continue to be agile and adapt swiftly to the changing trading environment. The summer months were fairly static as some buyers waited to see what the Labour Budget had in store. But there is always flux when there is a change of government and, post-budget as we move into 2025, we are seeing the market beginning to normalise as our customers begin to again look for value, quality and support with their company car and van fleets.
How do you feel the transition to electric vehicles is progressing?
The ICE ban shifting out to 2035 under the Sunak administration did put some uncertainty in the market. Labour has made noises for a few months now about reinstating the deadline back to 2030, and it’s been great to see their recent engagement with the automotive industry on this. Although this has yet to be officially announced, the direction of travel is good. We’re now seeing improved market stability, and Gofor is tracking really well in the EV space.
I believe we need more of the recent, positive activity from automotive industry figureheads and trade bodies to help bust some of the myths around EVs, campaigns such as the BVRLA’s #happyEVafter and our own EV myth-busting series will help massively here. That continued messaging will be key, alongside a strong government narrative on electrification.
Is Gofor seeing customer appetite for electrification?
Yes, and we’ve been able to capitalise on the EV opportunity this year. Drivers have been attracted by the enticingly low EV benefit-in-kind rates, which dovetail with companies seeking to decarbonise their fleets and overall carbon output. We’ve been particularly successful with salary sacrifice schemes, which allow businesses to access EVs for all staff. The expanding number of EV manufacturers has also been helpful and means there is now a range of attainable price points for most businesses.
How is electric van take-up going?
Our expectations are definitely different for electric vans compared with cars. We expect the LCV leasing segment to grow but we do see eLCVs lagging behind. Salary sacrifice has been a brilliant lever to boost electric car take up and it would be great to see an incentive in the van space. We see real potential in the small van market but as an industry we need to break down the perceived barriers, such as charging infrastructure, and work actively to get more businesses to trial an eLCV.
2025 could be a transformational year for the electric van market, the question fleet managers need to begin asking is 'how do I bring more electric vans into my business', instead of 'should I?'
What is your view on used electric vehicles?
In a similar vein to electric vans, 2025 could also be the year of the breakthrough in used EVs at scale. Autotrader published a report at the tail end of 2024 citing that a growing number of three-to-five-year-old EVs cost the same or less than their petrol or diesel counterparts. That’s exciting and, in my view, will benefit the leasing sector too; as the driving of EVs becomes more normalised, we’ll see even greater adoption of electric company cars and vans.
I accept that used EVs are a challenge for the market at present as there remains some concern around used values. However,that also represents a real opportunity for a solution that provides even more affordable access to the EV market – salary sacrifice for used electric vehicles being a standout.
Where do you see Gofor’s place in the market?
We are uniquely placed to support the SME fleet manager - we offer real fleet flexibility and a wide range of options when it comes to vehicle makes, models, and credit and funding solutions, ultimatley ensuring our customers can access the most competitive deals in the market. We operate on a multi-funder basis which saves our customers the time, hassle and cost of shopping around, something we know id hugely beneficial to fleet managers, whether they're dealing with 5 or 500 vehicles. It is also fundamental to our business model to take the extra time to understand a client's exact needs and tailor a solution - adding that value is particularly important in the SME market.
How will Gofor add value for customers going into 2025?
We add to our core proposition by working with partners that are right for our customers. We want to ensure value and the right customer outcomes. For us it is always about the added value that a partner can bring - it’s not just about the cheapest price point. And that goes for all our partners, and crucially our technology partners, who are key to ensuring we provide the best possible customer journey. We work really closely with our partner channel as the experience needs to be great for everyone - from the fleet manager through to the driver.
What are your expectations for the coming year?
Market growth, particularly in the business-to-business spacewhere we operate. Businesses like Gofor remain critical, especially for SMEs who often need more support with the‘heavy lifting’ elements of fleet management. The latest BVRLA Industry Outlook report is interesting in this context, with members forecasting a 14.4% increase in fleet car sales (Jan-Oct 2025) and proffering more optimism for 2025 v 2024 in the salary sacrifice for electric vehicles, fleet management and business contract hire spaces.
More innovation and increased AI adoption will have a big impact on those businesses that use it well. Gofor is excited to embrace that new technology over the next 12 months, indeed, in the last six months alone we’ve placed AI at the heart of our marketing campaign planning, incorporated it into our customer success team and built tools such as our fleet vehicle finder to more quickly identify the right company cars and vans for our customers. 2025 will see more of this, helping us to offer an even better service and free up time for greater quality and more meaningful customer interactions.
The ongoing shift to vehicle electrification, and I believe the customer education and support that companies like Gofor, automotive trade bodies, and the government can provide will be critical to making that transition a success. The barriers are undoubtedly falling away. It’s our job to make sure our customers understand this and can start their EV adoption journey as soon as possible.
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