When it comes to vehicle selection many fleet buyers are now considering diesels alternatives. However while a number of fleets are now actively looking at diesel alternatives when making vehicle procurement decisions many are finding them no better than their petrol equivalents when fit for purpose, economical and ecological factors are considered.

David Curtis, Fleet and Fuel General Manager for Fleetsmart comments that, "An increasing number of our clients are requesting diesel options when looking at fleet procurement, but when it comes to purchasing small passenger vehicles, we have found that many are sticking with petrol vehicles."

So, why then are fleet buyers sticking with petrol vehicles?

The first challenge with diesel alternatives is quite simply that there aren't many available - vehicle choices remain limited. Of particular note is the lack of small diesel vehicles with automatic transmissions. For many fleet applications, manual transmissions are not suitable as the drivers are often in stop-start traffic, or they simply don't know how to drive one!

The second barrier is cost. The diesel passenger vehicle market is dominated by European vehicles, which generally have a higher price tag than their Japanese counterparts, although this is changing with the costs of European vehicles becoming more competitive and with other manufacturers offering diesels. In addition to higher initial purchase prices diesel vehicles have traditionally required more frequent servicing, further inflating the cost of running such vehicles in a fleet. FleetSmart identify these increased costs in their Total Cost of Ownership (TCO) analysis, which show clients the lifetime cost of a vehicle as well as the cost per kilometre. To date TCO analysis of small vehicles have shown diesel vehicles to be more expensive over their life. Road user charges, greater capital cost and higher servicing costs are all contributing factors but in many cases, it is simply more expensive to purchase diesel vehicles and as small diesel vehicles are relatively new to the New Zealand market, it is hard to predict their residual value.

The final barrier is air pollution. While diesels have lower fuel consumption, they have higher air pollution levels, particularly PM10. PM10 is particulate matter and is responsible for smog and respiratory illness. According to the Ministry for the Environment roughly 800 people die every year from the air pollution caused by particulate matter from cars, coal and wood fires - this is double the road toll! Some diesel vehicles are now fitted with particulate filters, which greatly reduce their emissions. However major fleets, such as the Auckland Regional Council have stated that they will not purchase diesel vehicles until Euro V standard vehicles become available, which is unlikely before 2009. FleetSmart recognise the need to consider ecological factors when making fleet decisions and provide their clients with EcoFleet ratings in all TCO analyses, allowing them to make an informed ecological decision.