Corporate take-up of electric vehicles is hitting record levels, according to fleet management and leasing specialist, Fleet Alliance.

During the second half of 2024, battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) accounted for 79% of Fleet Alliance new car orders on its managed fleet of more than 30,000 vehicles.

And the Glasgow-based specialist is seeing the trend continue into 2025, the cost and tax-savings potential of both having clearly become increasingly apparent to fleet managers and drivers alike. Some 82% of the current order pipeline has been taken by BEVs and PHEVs – the highest market share for both model types so far recorded by the company.

For business customers contract hire remains the most popular funding method for electric cars with 74% of all BEVs being funded in this way in 2024, while salary sacrifice continues to grow in popularity, accounting for 23% of BEVs ordered in the last 12 months.

“Both BEVs and PHEVs continue to dominate our order books, offering as they do advantageous tax breaks and a low carbon option for businesses, and an attractive tax- and cost-effective way of acquiring an electric car for employees,” said Fleet Alliance CEO, Andy Bruce.

All-electric US brand Tesla dominates the sales chart, the Model 3 at number one and its Model Y stablemate in second place for the second year in a row.

 “It is perhaps unsurprising that Tesla continues to claim first and second places in our top ten charts as it has been the outstanding electric car brand for a number of years now. Both models offer benefits in terms of low monthly rentals and Benefit-in-Kind rates which really appeal to our customers, “said Bruce.

In third place was the Polestar 2, jumping from tenth place halfway through the year  in a strong second-half sales performance. It was followed by the MG4, Mercedes EQA, BMW i4, Mercedes EQB, Cupra Born, Audi Q4 and Skoda Enyaq.

Bruce expects the swing to electric to further accelerate over the coming months. “It’s clear that tax incentives, coupled with companies’ own ESG (environmental, social and governance) 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. “

He believes, however, that the Government needs to address the struggling take-up of EVs among private buyers. “It is imperative that private buyers are encouraged through incentivises by government to take up EVs as they lag massively behind the corporate sector.

“Some of this is happening via salary sacrifice but for retail customers without access to this increasingly popular benefit, there needs to be a coordinated and committed government approach with incentives for private buyers if they’re serious about their Net Zero ambitions.”