Glasgow-based fleet management and leasing firm Fleet Alliance has reported a record 81% market share for electric cars and hybrids in the first half of 2025 as more business customers switched to lower-emission vehicles.
Between January and June, 45% of new orders were battery electric vehicles (BEVs) and 36% were hybrids, with the figure rising to 83% in the current pipeline.
Contract hire was the most popular funding method for BEVs, accounting for 70% of orders, while salary sacrifice continued to grow in popularity at 29%.
Only 1% of BEVs were ordered on personal contract hire. Fleet Alliance’s figures outpaced national results, with SMMT data showing 254,666 BEVs registered in the UK in the same period, up 31% year-on-year, and plug-in hybrids up 31.5% to 124,528.
Andy Bruce (pictured), chief executive of Fleet Alliance, said: “We are actually outpacing national trends, as we continue to see record orders of BEVs and hybrids.
“As companies look to reinforce their ESG agendas, the electrification movement continues to gather pace helped by advantageous tax breaks, with a current rate of company car tax of just 5% by 2027/8.
“That’s a huge financial incentive for would-be company car buyers as well as providing certainty about future tax levels.”
The Tesla Model Y was the most popular BEV with Fleet Alliance customers in the first half of 2025, followed by the Polestar 4 and Tesla Model 3.
The BMW i4, Volkswagen ID.7 and BYD Seal also featured in the top ten. The BYD Seal’s appearance in sixth place marked the first time the Chinese brand entered the company’s rankings, supported by its claimed 354-mile range.
Among hybrids, the Volkswagen Tiguan eHybrid led sales, followed by the BMW 3 Series and Volvo XC90. Bruce added: “As you can see from our top ten sales charts, there are now electric cars and hybrids to meet all tastes and budgets.
“And the switch to electric looks set to be given a further boost by the newly announced Electric Car Grant, with grants from £1,500 to £3,750 off the cost of any new electric car with an initial list price of up to £37,000. Our forward order banks clearly prove that this is the case.”
