ELECTRIC vehicles are surging in popularity among Fleet Alliance’s corporate clients, with battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) now making up a record 82% of new car orders. This marks a significant jump from the 79% recorded in the latter half of 2024, signaling a continued acceleration in the electrification of company fleets.
Fleet Alliance, the Glasgow headquartered leasing broker and fleet management specialist, attributes this surge in EV adoption to growing awareness of the cost and tax benefits associated with electric cars, both for businesses and employees.
“Both BEVs and PHEVs continue to dominate our order books. They offer advantageous tax breaks and a low carbon option for businesses, as well as an attractive tax- and cost-effective way for employees to acquire an electric car.”
Bruce also pointed out that salary sacrifice had proven an enormously popular method of acquiring a new electric car and almost a quarter of all BEVs were now funded through this method on the company’s fleet.
Bruce said that he expected the swing to electric to further accelerate over the coming months.
“It’s clear that tax incentives, coupled with companies’ own ESG agendas, are powering the adoption of EVs in the business sector and this seems set to continue with clarity on favourable BIK rates now announced to the end of the decade.”
Tesla Model 3 is top of the order books
Tesla continues to reign supreme in the EV space, with the Model 3 and Model Y securing the top two spots in Fleet Alliance’s order book for the second year running. The recently updated Model 3, boasting a 436-mile range, and the upcoming refreshed Model Y, featuring a new Cybertruck-inspired front end, are proving particularly popular.
“Tesla has been the outstanding electric car brand for a number of years now,” added Bruce. “Both models offer benefits in terms of low monthly rentals and BIK rates which really appeal to our customers.”
Other strong performers in the Fleet Alliance top 10 include the Polestar 2, which saw a significant jump in popularity in the second half of 2024, along with the MG4, Mercedes EQA and EQB, BMW i4, Cupra Born, Audi Q4 and Skoda Enyaq.
While the corporate sector embraces EVs, Bruce expressed concern over the slower adoption rate among private buyers. He stressed the need for government incentives to bridge the gap and encourage greater EV uptake, echoing recent concerns from the Society of Motor Manufacturers and Traders (SMMT) about lagging private EV sales.
“It is imperative that private buyers are encouraged through incentives offered by the government to take up EVs as they lag massively behind the corporate sector,” Bruce emphasised. “There needs to be a coordinated and committed government approach with incentives for private buyers if they’re serious about their Net Zero ambitions.”
With favorable tax policies in place until the end of the decade and growing environmental awareness, the shift towards electric mobility shows no signs of slowing down. Fleet Alliance anticipates that the proportion of EVs and hybrids within its managed fleet of 30,000 vehicles will continue to rise significantly in the coming year.
Automotive and fleet writer for Broker News
