Plug-in electric vehicles have gained a record market share in order banks at Fleet Alliance as the corporate electrification momentum shows no sign of decelerating.

BEVs and PHEVs accounted for 79% of new car orders on Fleet Alliance’s managed fleet

Battery electric vehicles (BEVs) and plug-in electric hybrids (PHEVs) accounted for 79% of new car orders on the firm’s managed fleet of over 30,000 vehicles in the second half of 2024.

And the trend has continued apace into 2025, with the current order pipeline comprising 82% of BEVs and PHEVs – the highest market share for both model types so far recorded by the company – driven by growing recognition of the cost and tax savings potential for fleet managers and drivers alike.

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

“Electric cars and hybrids currently dominate our corporate order books, and some 47% of our entire managed fleet now comprise either BEVs or hybrids. That ratio will undoubtedly continue to increase over the next 12 months,” continued Bruce.

“In terms of funding methods, salary sacrifice has proven to be an enormously popular method of acquiring a new electric car and almost a quarter of all BEVs are now funded through this method on our fleet,” he added.

Bruce said he expected the swing to electric to further accelerate over the coming months.

“It’s clear that tax incentives, coupled with companies’ own ESG 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.”

But he warned of continued concerns over take-up of BEVs amongst private buyers – data from the Society of Motor Manufacturers and Traders (SMMT) shows just one in 10 private buyers went electric in 2024.

“It is imperative that private buyers are encouraged through incentives by government to take up BEVs 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,” he said.

Most popular BEV choices for businesses

Fleet Alliance also revealed its league table for the most popular BEVs in 2024.

The Model 3 topped the Fleet Alliance BEV sales charts in 2024

Tesla models remained the standout choice with both businesses and drivers, with the Model 3 topping the sales charts. The electric saloon now boasts its longest-ever range, following the autumn launch of a new Long Range variant with a 436-mile range and a starting price of £44,990.

In second place for the second year in a row is the Model Y, an updated version of which is set to go on sale at the end of this month. The Model Y features a new-look front end, adapted from Tesla’s Cybertruck and said to benefit both aerodynamics and safety.

“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 BIK rates which really appeal to our customers,” said Bruce.

In third place was the Polestar 2, jumping from 10th place halfway through the year to third place in a strong second-half sales performance. New batteries give ranges from 322-406 miles with a starting price of around £44,950.

Other models featuring in the Fleet Alliance 2024 top 10 included the MG4, Mercedes EQA and EQB, BMW i4, Cupra Born, Audi Q4 and Škoda Enyaq.

Top 10 battery electric cars 2024

Source: Fleet Alliance