Updated: July 21 2025
The cost of running a fleet in the UK is becoming increasingly complex and expensive. While fuel used to be the main driver of rising costs, that is no longer the case in 2025. Maintenance, repairs, labour, and supply chain issues are now placing the greatest strain on fleet budgets.
What’s Driving Fleet Costs in 2025?
Recent data shows that the cost of running and maintaining a fleet in the UK has continued to rise, but for very different reasons than in previous years. In 2018, vehicle operating costs rose by around 2.5%, mostly due to fuel price volatility. In contrast, by 2025, fuel is no longer the dominant cost factor.
Fleet maintenance and repair costs have risen sharply due to the growing complexity of vehicles, especially those equipped with advanced driver assistance systems and electric components. In 2024 alone, UK fleets experienced an 11.3% increase in service, maintenance and repair costs, followed by a further 4.9% rise in the first quarter of 2025. Labour costs increased by 8.5%, and the cost of paint rose by over 10%, while availability of parts remains a major challenge.
Despite these pressures, many fleet operators have managed to reduce fuel expenditure through better use of technology. Across the UK, fuel costs were down by an average of 24% in 2024, largely due to the adoption of telematics, data-led fuel management systems, and smarter routing tools.
The Impact of Fleet Technology
Technology is now essential to cost control. Telematics and vehicle tracking systems provide accurate, real-time data that helps Fleet Managers identify inefficient driving habits, reduce waste, plan more economical routes, and catch maintenance issues early. With a preventative maintenance approach, some fleets reduced their maintenance costs by as much as 21% in 2024 compared to the year before.
Accident-related costs also fell by around 28% thanks to the increasing use of dashcams, driver behaviour monitoring, and safety alert tools.
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Embracing Electric Vehicles
Electric vehicle adoption in UK commercial fleets continues to grow. Although the upfront investment in electric vans and HGVs remains high, the long-term savings are significant. EVs are cheaper to run per mile than petrol or diesel vehicles, and electricity prices tend to be more stable than fossil fuel rates.
More than 70% of new electric vehicle registrations in 2025 have been for business use. Government-supported initiatives like the Go Ultra Low campaign have helped companies commit to electrification, and businesses are now seeing the environmental and financial benefits.
Popular electric models such as the Nissan Townstar, Citroën ë-Berlingo, and Mercedes-Benz eSprinter are widely available. Larger electric trucks from Volvo, DAF, MAN and other manufacturers are also becoming more accessible, giving fleet managers more options to suit their needs.
Future-Proofing Fleet Strategy
The financial challenges facing UK fleets in 2025 are varied and ongoing. Inflation, parts shortages, regulatory changes and the push for decarbonisation all add pressure. But fleet operators who invest in the right tools and take advantage of electrification opportunities will be better placed to manage costs and stay competitive.
Using data and technology to improve efficiency, cut waste, and optimise vehicle performance is no longer a nice-to-have. It is a critical part of running a successful fleet.
Read more about fleets here: Fleet Insurance Guide: Cost, Coverage Options, and Savings Tips
(Sources: Sopp+Sopp – Reflecting on 2024 in Fleet Management | Verizon Connect – UK Fleets Decrease Costs with Fleet Management | Fleet World – Autumn Budget 2024: Main Points for Fleets)
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