Electric vehicles have cemented their dominance at Fleet Alliance, claiming a record share of new orders as businesses rapidly transition away from traditional combustion engines.

In the full 12 months of 2025, battery electric cars (BEVs) and plug-in hybrids (PHEVs) accounted for 84% of all vehicle orders at the Glasgow-based fleet management and leasing specialist.

The trend has continued into 2026, with current order banks showing an 85% market share for both model types combined to date.

Contract hire remains the most popular funding method for electric cars among Fleet Alliance business customers, with 67% of all EVs funded this way.

However, salary sacrifice, in line with the national trend, continues to grow in popularity with the firm’s customers; it funded 31% of EVs last year. Personal contract hire fell to just 1% of funded electric vehicles.

Fleet Alliance CEO Andy Bruce said the current advantageous tax breaks for company car drivers continue to spur the electrification movement, with a 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,” he stated.

Bruce also said the Electric Car Grant had undoubtedly uplifted EV demand too.

And he remained upbeat about the impact of the new eVED pay-per-mile tax, announced at the Autumn Budget 2025 and set for arrival from April 2028.

The Fleet Alliance chief said: “Crucially, this newly announced change is several years away, giving fleets and drivers plenty of time to plan and allowing providers to build the costs into future quotations.

“EVs are still taxed at half the rate of petrol and diesel cars; the extension of the Expensive Car Supplement to £50k, also announced at the Budget, is genuinely good news for many EVs; and extra grant funding will help support EV affordability and residuals.

“These factors taken together, even with the impact of the new mileage charge to come, mean that EVs remain one of the most cost-effective choices for a company car or salary sacrifice driver, with lower tax, lower fuel costs and a clearer long-term tax framework than ever before,” he said.

When it comes to the most popular electric cars and hybrids on the Fleet Alliance fleet in 2025, latest analysis shows that Tesla models have recaptured the top spots with the Model 3 in first place in 2025 and the Model Y in second.

Top 10 electric and hybrid vehicles at Fleet Alliance – Jan-Dec 2025

Source: Fleet Alliance

The Fleet Alliance electric charts also reveal a first-time appearance by Chinese brand BYD with its Seal saloon, although mainstream manufacturers, such as BMW, Volkswagen and Volvo, continue to figure prominently.

Bruce also said the wide choice of BEVs and PHEVs available was another a factor in the rise of more environmentally friendly motoring.

“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 opening order banks for 2026 clearly prove that this is the case,” he added.