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EVs and PHEVs account for 84% of all 2025 orders, finds Fleet Alliance

The most popular EV and PHEV models among Fleet Alliance customers were the Tesla Model 3 and Y, Volkswagen Tiguan, Polestar 4 and Polestar 2.

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84% of all vehicle orders at Fleet Alliance were for electric vehicles (EVs) and plug-in hybrids (PHEVs) in 2025, a record for the firm.

The most popular EV and PHEV models among Fleet Alliance customers were the Tesla Model 3 and Model Y, Volkswagen Tiguan, Polestar 4 and Polestar 2.

The BYD Seal was the eighth most popular EV or PHEV in 2025 among its customers.

Fleet Alliance said that 85% of its current orders are for EVs and PHEVs.

The most popular funding method for EVs was contract hire, accounting for 67% of all EVs supplied by Fleet Alliance in 2025.

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Salary sacrifice grew to become the next most popular funding method (31%), while 1% of EVs were funded through personal contract hire.

Andy Bruce (pictured), CEO at Fleet Alliance, said: “We continue to see record orders of BEVs and PHEVs with the switch to electrification continuing to accelerate amongst our business customers.

“The electrification movement continues to gather pace helped by still-advantageous tax breaks, with a current rate of company car tax of just 5% by 2027/8.

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“That’s a huge financial incentive for would-be company car buyers as well as providing certainty about future tax levels.

“And there has undoubtedly been an uplift from the impact of the recently revised Electric Car Grant, which at a maximum of £3,750 for new, eligible EVs priced at or below £37,000, is available to business as well as retail customers.

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“As you can see from our top ten sales charts, there are now electric cars and hybrids to meet all tastes and budgets.”

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Bruce was optimistic about the economics of EVs, despite the introduction pay-per-mile road tax scheme on EVs and PHEVs from 2028.

Bruce said: “Crucially, this newly announced change is several years away, giving fleets and drivers plenty of time to plan and allowing providers to build the costs into future quotations.

“EVs are still taxed at half the rate of petrol and diesel cars; the extension of the Expensive Car Supplement to 50K, also announced at the Budget, is genuinely good news for many EVs; and extra grant funding will help support EV affordability and residuals.

“These factors taken together, even with the impact of the new mileage charge to come, mean that EVs remain one of the most cost-effective choices for a company car or salary sacrifice driver, with lower tax, lower fuel costs and a clearer long-term tax framework than ever before.

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“Given the wide choice available, we believe there has never been a better a time for organisations to offer their staff the opportunity to take advantage of the benefits that exist on electric cars, be that through business contract hire or salary sacrifice. 

“Our opening order banks for 2026 clearly prove that this is the case.”

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