Battery electric has overtaken petrol to become the most popular fuel type on the BVRLA’s leasing fleet, according to the association’s latest Leasing Outlook report. 

BEVs accounted for 32% of new vehicle orders up to the end of Q1 2022, compared to 31% for petrol

The quarterly data shows that BEVs accounted for 32% of new vehicle orders up to the end of Q1 2022, compared to 31% for petrol. 

It’s the first time BEVs have been the most popular powertrain, marking a major milestone in the sector’s transition to zero-emission motoring. And it means the sector could significantly beat the 2030 ICE ban deadline. 

Announcing the landmark moment at the recent Fleets in Charge Conference, BVRLA chief executive Gerry Keaney said: “Battery electric vehicles are dominating the order banks for company and salary sacrifice cars. This sector could hit the phase-out target with years to spare. New electric car registrations have now overtaken petrol.” 

The BVRLA has also predicted that the number of BEVs on the BVRLA leasing fleet will rise a further 40% in the next 12 months. The sector’s progress to Net Zero continues to accelerate, further reducing the emissions of the BVRLA leasing fleet. 

But the association said that low BiK rates for EVs remain critical to encourage take-up – something highlighted in its ongoing #SeeTheBenefit campaign to show MPs how company car schemes are democratising the move to EVs. 

Keaney added: “Momentum for electric cars is building but will only continue if the Government resists the urge to pull the handbrake by introducing a major hike in Benefit-in-Kind tax.”  

The Government has acknowledged how that BVRLA and its members are leading the transition to EVs. 

Addressing delegates at the association’s Fleets in Charge Conference, Transport Minister Trudy Harrison said: “Ten years ago, EVs were probably seen as a bit eccentric or a luxury that only a few could afford. I’m delighted that we’re turning that narrative on its head, in no small thanks to the actions of so many in this room.  

“Zero-emission vehicles are now more affordable, more popular, more important than ever and our best bet to a greener and low-emission future.”  

Elsewhere in July’s Leasing Outlook report, the BVRLA reveals that business contract hire is returning to growth, although the popularity of personal contract hire continues to close the gap in terms of the total fleet split. PCH is up 7.5% year on year, with salary sacrifice the most dynamic subsector. Driven by favourable company car tax rates, salary sacrifice grew 41.2% to reach a total of 35,134 cars, the vast majority of which are BEVs.  

When considering vehicle type, vans are the main success story again, growing 12.8% to reach 496,911 units. It’s believed this figure would have been greater still had more new vehicles been available. The van market is still behind cars when it comes to uptake of electric vehicles though, with the data suggesting a move towards larger LCVs, where fewer zero-emission models are in market. 

To access the full BVRLA Leasing Outlook, click here.  

Headline statistics, July 2022 (increases are year on year) 

• BVRLA leasing fleet grew 2.9% yoy 
• Van fleet up 12.8% (56,000 units) to 496,911 
• BCH back in growth, PCH up 7.5% to 325,885 vehicles  
• Salary sacrifice seeing the fastest growth in PCH, 41.2% increase among members to 35,134 vehicles  
• Plug ins up to 48% of new vehicle orders. BEV (32%) has overtaken petrol (31%)  
• BEV forecast to reach 40% next year  
• Average emissions of vehicles on BCH reduced by 31%, to 53g/km