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.
“However, a Tesla Model 3 saloon RWD 4dr auto costing £42,935 would have a taxable value based on only 2% of its price, which comes to £859. Therefore, a 20% taxpayer would pay just £172 annually, £2,033 less each year than the Audi.
“Over a four-year replacement cycle, the tax savings for the Tesla driver total thousands of pounds, which we are certain is a powerful incentive to consider switching to the US brand.”
Behind the Tesla duo the rest of the top 10 EVs on fleet alliances books were made up of the MG4, BMW i4, Audi Q4, Mercedes-Benz EQA, Cupra Born, Mercedes-Benz EQB, Skoda Enyaq and Polestar 2.
Bruce added that the list showed that there are now electric cars to meet all tastes and budgets; “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 a company car scheme or salary sacrifice.
“Our customers certainly agree and our forward order banks clearly prove that this is the case,” he added.
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