The 2025 edition of the ARVAL Mobility Observatory Fleet and Mobility Barometer has revealed that Australian businesses are actively considering the shift to more sustainable fleet operations, with a majority already implementing or planning to implement strategies for the future. Based on a comprehensive global survey of 8,605 fleet decision-makers across 30 countries — including 300 participants from Australia — the report offers an evidence-based snapshot of current sentiment and behaviours among fleet operators.
Fleet Decarbonisation in Focus
According to the Australian results, 64% of companies have already implemented, or plan to implement, a sustainable fleet strategy. This is just below the global average of 69%, suggesting Australian organisations are aligned with global priorities, though slightly more reserved in their implementation.
However, actual uptake of battery electric vehicles (BEVs) remains low. In Australia, only 19% of companies currently operate BEVs, compared to 34% globally. Even when including plug-in hybrids (PHEVs) and full hybrids, 53% of Australian fleets use at least one type of electrified vehicle, falling short of the global figure of 71%.
Barriers to EV Adoption Remain Consistent
Australian respondents identified three key challenges when it comes to electrifying their fleets:
- Purchase price (52%)
- Charging infrastructure (50%)
- Vehicle availability (40%)
These barriers are consistent with global findings and highlight the local challenges that are slowing down adoption, despite growing interest in fleet sustainability.
Reasons for Changing Fleet Policies
Australian businesses cited the following top reasons for updating their vehicle policies:
- To reduce fuel consumption: 52%
- To lower Total Cost of Ownership (TCO): 41%
- To improve safety: 36%
- To support decarbonisation goals: 29%
This data shows a clear focus on financial and operational efficiency, with sustainability goals also becoming an increasingly influential factor.
Telematics Use on the Rise
More than half of Australian companies surveyed — 54% — reported using telematics solutions. This is closely aligned with the global average (55%) and demonstrates growing maturity in data-led fleet management. The report highlights that telematics are primarily being used to:
- Improve safety
- Monitor usage and efficiency
- Support maintenance strategies
Mobility Alternatives Less Common in Australia
While mobility solutions such as car sharing and multimodal transport are gaining traction globally, they remain limited in Australia. Only 7% of Australian companies reported using corporate car sharing, compared to 35% globally. Similarly, uptake of mobility budgets, on-demand vehicle access, and bicycle leasing is significantly lower than global benchmarks.
This suggests Australian fleets remain more traditional in their operational structure, with limited experimentation in alternative transport modes.
Future Intentions: Growth and Sustainability
Despite the challenges, Australian businesses are still planning to grow their fleets. According to the report, 29% of respondents expect their fleet size to increase over the next three years. Among small businesses (fewer than 10 employees), this figure rises to 41%, reflecting confidence in business activity and continued reliance on vehicles.
Globally, this intention to grow is slightly higher, with 35% of all businesses expecting their fleets to expand — showing Australia is in line with international trends, albeit with slightly more caution.
What This Means for Fleet Managers
For Australian Fleet Managers, Procurement Leaders, and Sustainability Officers, the ARVAL Barometer provides a valuable benchmarking tool. Key considerations based on the report include:
- Fleet decarbonisation is now mainstream: With nearly two-thirds of companies implementing sustainability plans, the question is no longer if, but how fast organisations can overcome structural challenges like cost and infrastructure.
- Efficiency is the driver: While emissions reduction is important, decisions are still primarily driven by fuel consumption, TCO, and safety. Messaging around EVs must continue to focus on these core business priorities.
- Telematics is a strength: With more than half of fleets already using telematics, there’s potential to expand its use into strategic decision-making and ESG reporting.
- Mobility alternatives have potential: Although current uptake is low, increased awareness of car sharing and on-demand transport options could unlock new efficiencies in urban and metro operations.
Australia’s fleet market continues to evolve, and while progress is steady rather than swift, the intent to transition is clear. The ARVAL Mobility Observatory 2025 findings show that local organisations are engaged with the global shift toward sustainable and efficient mobility — but face unique structural hurdles in realising that ambition.
For fleet professionals, this report is a reminder to focus on actionable steps. Whether it’s increasing hybrid adoption, leveraging telematics data, or refining vehicle procurement strategies to align with ESG goals, the groundwork for a smarter, greener fleet is already underway.
