THE UK’s corporate landscape is witnessing a significant shift towards electric vehicle (EV) adoption, fuelled by the compelling economics of salary sacrifice schemes. The Electric Car Scheme, a leading salary sacrifice leasing broker, has reported a dramatic surge in business interest following the Autumn Budget announcement.
Thom Groot, CEO and co-founder of The Electric Car Scheme, attributes this growth to businesses strategically leveraging the scheme to offer both new and pre-owned EVs to their workforce, while simultaneously optimising their employer National Insurance contributions.
“The salary sacrifice framework, designed to empower employees with affordable EV access and deliver tangible NI savings for employers, is now hitting its stride,” Groot stated. “While steady growth has been observed over the past six years, the recent acceleration underscores the increasing awareness of the scheme’s dual benefits.”
Key Market Indicators:
- Inquiries Up: A 21% increase in business inquiries within two months of the Budget announcement.
- Sign-Ups Soar: A 34% jump in businesses formally adopting the scheme.
- Order Surge: A 22% rise in EV orders placed by employees.
- Second-Hand Success: Nearly 50% of orders are now for pre-owned EVs, enhancing affordability.
- Employee Expectations Rise: 30% of employees now expect employer support for sustainable commuting, up from 10% in 2023.
- Cost Conscious Consumers: 54% cite price as the primary barrier to EV adoption.
The confluence of rising EV popularity, the cost-of-living crunch, and the strategic financial advantages of the salary sacrifice scheme is driving this unprecedented growth, according to Groot.
He says: “The rising demand for second-hand EVs, now accounting for nearly half of our sales, highlights the scheme’s crucial role in democratising EV access. This aligns with our mission to accelerate EV adoption ahead of the phase-out of traditional vehicles.”
Market insight
The Electric Car Scheme’s data reveals a growing expectation among employees for sustainable commuting support. This trend, combined with the proven financial benefits, positions EV salary sacrifice as a key driver in the UK’s transition to electric mobility. Brokers should be aware of the increased demand for these schemes, and the growing popularity of second hand vehicles.
Automotive and fleet writer for Broker News
