Electric cars and hybrids claimed a record 81% market share in the first half of this year at Fleet Alliance, as more business customers made the move to electric power.

In the first six months of 2025, battery electric vehicles (BEVs) accounted for 45% of new vehicle orders, with hybrids taking 36%; the highest market share for both model types to date. In the current order pipeline, the combined figure is even higher at 83%.

Among business customers of Fleet Alliance, contract hire remains the most popular funding method for electric cars, with 70% of all BEVs being funded in this way, while salary sacrifice continues to grow in popularity, accounting for 29% of all BEVs ordered in the last six months, with just 1% coming from personal contract hire.

The results outstrip national figures, with SMMT statistics showing that there have been 276,635 BEVs sold across the first eight months of 2025; a 29.5% rise on the same period last year and taking a 21.9% share, while sales of PHEVs are up by 33.7% to 134,331 units and a 10.6% share.

“We are actually outpacing national trends, as we continue to see record orders of BEVs and hybrids,” said Fleet Alliance CEO, Andy Bruce.

“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 league table for the most popular BEVs reveals that Polestar has been making inroads into the leading positions previously enjoyed by Elon Musk’s Tesla models.

The Polestar 4, an electric coupé which went on sale a year ago, came in second place in the half-yearly figures, with its Polestar 2 stablemate also featuring in the Fleet Alliance top ten in eighth place.

The Tesla Model Y claimed the top spot, with the Model 3 following it in third place, despite falling sales across Europe along with criticism of the US manufacturer’s attitude towards fleet operators in the UK.

Top 10 battery electric vehicles Jan-Jun 2025

Source: Fleet Alliance

While mainstream manufacturers, such as BMW, Volkswagen and Mercedes, continue to figure prominently in the Fleet Alliance electric charts, there is an appearance for the first time in sixth place for the Chinese BYD Seal, with its claimed 354-mile range.

Well-established in China and selling in huge numbers globally, BYD is making inroads into the UK market with 3,184 models sold in July for a 2.27% market share (source: SMMT).

Hybrids, both plug-in and self-charging, also figure prominently in the most popular vehicles with Fleet Alliance customers, with the Volkswagen Tiguan eHybrid topping the top ten hybrid sales charts.

A plug-in hybrid version of the Tiguan SUV, featuring a 1.5-litre TSI petrol engine paired with an electric motor and a 19.7kWh battery, the Tiguan eHybrid offers a combined output of 204hp or 272hp and an impressive all-electric range of up to 77 miles.

Top ten hybrids Jan-Jun 2025

Source: Fleet Alliance

The wide choice of EVs available was a factor in the rise of more environmentally friendly motoring, said Andy Bruce.

“As you can see from our top 10 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 (ECG), 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.

“This will, we believe, enhance the popularity of BEVs still further within the business sector.

“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 business contract hire or salary sacrifice. Our forward order banks clearly prove that this is the case,” he added.