Tesla leading surge in EV fleet share

Tesla cars are leading an increase in market share amongst fleet and leasing customers, according to the latest data from Glasgow-based fleet management and leasing specialist, Fleet Alliance.

In the first five months of 2024, 42% of Fleet Alliance vehicle orders have been for battery electric vehicles (BEVs) with hybrid (HEV) vehicles accounting for another 35%, taking the market share for both model types to 77%, its highest to date.

Fleet Alliance CEO, Andy Bruce, is not surprised that EVs are now dominating orders. “They combine advantageous tax breaks with a sustainable solution for fleet managers, whether as company cars or through EV salary sacrifice provision,” he said.

Models from the all-electric US brand Tesla have been the stand-out performers, with the Model 3 topping the charts and its SUV sister the Model Y in second place.

The Model 3 saloon was recently updated with an aim of better efficiency, comfort and more user features. Aerodynamic modifications have added 8% to the car’s efficiency, Tesla now quoting up to 390 miles between charges.

The Model Y was Europe’s top-selling EV in 2023, during which it also proved the favourite EV for Fleet Alliance customers. The car offers the same long range and performance potential as the Model 3 but in an SUV body style.

“Tesla has been the outstanding electric car brand for a number of years and offers a number of Benefit in Kind (BIK) tax and cost advantages which really appeal to our customers,” said Bruce, comparing the BIK tax bills for a Model 3 with a comparable Audi 3 to underline the tax savings available.

 “A petrol-powered Audi A3 saloon 35 TFSI Black Edition 150PS S Tronic costing £35,570 and emitting 132g/km of CO2 falls into the 31% tax band based on its emissions, which equates to £11,027. As a result, a 20% taxpayer incurs a £2,205 annual tax bill and a higher-rate taxpayer double that.