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HYBRID and plug-in hybrid vehicles have been at the forefront of fleet acquisition over the last three years or so.

Compared with 12 other European markets, UK fleets not only lead on the hybrid front, but are in second place when it comes to future EV use.

Research from Arval has shown that larger fleets that are really taking the lead while in smaller fleets around 30% of vehicles are hybrid.

Choosing your next company car? A hybrid could held bring down the amount of tax you pay.

There’s a quite a lot of choice on the market – so what do you go for?

Well our top choice is this year’s winner of the Business Motoring hybrid award went to the Volvo XC40 T5 Twin Engine R-Design.

Launched in September last year, it comes with a small 1.5-litre, turbocharged engine combined with an electric motor providing 258hp and 425Nm of torque.

Pretty good performance, but the real bonus is a fuel consumption figure of well over 100mpg and a CO2 of just 38g/m – really good news when it comes to BiK.

The R-Design weighs in at £40,905 and its other stand-out figures:

  • 0–62mph time of 7.3 seconds
  • Top speed of 127mph.
  • WLTP-rated economy at 141.1mpg,
  • Battery pack offers an all-electric range of 28.6 miles.

All models comes with a three-pin domestic charging cable, which provides a full charge in between three and a half and six hours.

You can buy a Type 2 fast-charging cable for use with commercial fast-charging stations, which will provide a full charge in around two and a half hours.

The XC40 in one of the best compact SUVs around

When you think Volvo, you generally think big, particularly when it comes to SUVs, but the Swedish company has genuinely done a great job downsizing.

Compact on the outside, very well kitted out inside. It’s relaxing and comfortable to drive whether about town or on a long motorway run.

We never really noticed the turbo which delivers power pretty smoothly and the engine itself sounds and feels smooth enough with little vibration through the pedals or steering wheel.

the manual gearbox has a positive feel to the shift and while the car cruises nicely at 60-70mph, any acceleration required for overtaking does involve some gear-hopping.

Steering feels light, particularly useful while twiddling around town although you can add weight by switching to dynamic mode.

Every car gets a big touchscreen with sat-nav and while Apple CarPlay, Android Auto and that 360 degree bird’s eye view reversing camera cost extra, they are well worth having.

There are also get LED headlights, climate control and rear parking sensors on every car.