Increasing demand for electric vehicles is helping the leasing sector to return to growth following the initial impact of the pandemic.

Battery electric vehicles (BEVs) accounted for 21% of new cars added to the BVRLA fleet in Q3

That’s according to the latest BVRLA Leasing Outlook report, which covers Q3 2021 and also shows the BVRLA fleet has returned to growth for the first time in three years, up 2.8% year on year.

Battery electric vehicles (BEVs) accounted for 21% of new cars added to the BVRLA fleet in Q3. The total number of BEVs on the fleet is expected to grow a further 53% (from 137,000 to 210,000) by Q3 2022.

The growth comes despite the continued challenges to vehicle supply caused by the global semiconductor shortage.

The BVRLA said the positive figures underline the returning confidence in both the sector and wider economic situation.

EV demand is particularly being driven from the company car market; 31% of business contract hire and 68% of salary sacrifice orders are now for electric vehicles. Those figures rise to 57% and 82% respectively when factoring in plug-in hybrid vehicles

BVRLA chief executive Gerry Keaney said: “Our industry can be immensely proud of the progress it has made over the last 12 months. Our sector continues to lead the charge towards zero-emission vehicles, even in the face of a global supply shortage.

“We have seen the lease fleet size return to growth for the first time in three years, demonstrating the sector’s resilience. While this is predominantly due to the popularity of vans, it is notable that car registrations have seen positive performance, marking a significant turnaround as the recovery from 2020 takes hold.

“The positive performance is testament to the quality of the vehicles available, the confidence in the long-term health of the market, and the ongoing commitment of BVRLA members to decarbonise their fleets to ensure the UK can meet its Net Zero ambitions.”

The new report also reveals the growing popularity of vans, which were up by more than 40,000 units year on year, approximately 10%.

Vans now account for one in four vehicles operated by BVRLA members in the leasing sector; due in part to the shift to a digital economy reliant on home delivery services.