Plug-in vehicles took 45% of new car orders on the BVRLA leasing fleet in Q4 2021, hitting a new high and showing the importance of the fleet leasing sector in the path to net zero.

Plug-in vehicles took 45% of new car orders on the BVRLA leasing fleet in Q4 2021

The association’s latest Leasing Outlook Report reveals that the majority of plug-in vehicles ordered in Q4 were zero-emission battery electric vehicles (BEVs), which accounted for 31% of total new orders – only just pipped by the 32% taken by petrol.

Among salary sacrifice schemes, however, more than three-quarters (78%) of new orders were for BEVs. And within the business contract hire (BCH) sector, electric cars topped new vehicle orders, accounting for 42% of registrations – this compares to 8% of orders specifying diesel, now one of the least popular powertrain choices.

Leasing executives also predict rapid changes for the next two quarters, with diesel dropping 15% over the coming year, while the BEV fleet increases 41% to more than 230,000 vehicles.

The combined BEV and plug-in hybrid (PHEV) fleet, currently around 330,000, will leap to nearly 450,000, according to executives, ahead of diesel on 375,000 and nearly matching petrol’s share of 505,000 cars.

If supply constraints can be overcome, this predicted growth could be even higher.

But chief executive Gerry Keaney warned that the current issues with both chip shortage and the war in Ukraine could curtail growth, particularly if carmakers continue to prioritise higher-profit retail channels.

“The fleet leasing sector is driving demand for zero-emission vehicles, but it is being starved of supply as manufacturers divert product to more lucrative sales channels. If this trend becomes a long-term one, the fleet sector will see more miles being driven in older, dirtier vehicles,” he said.

The latest BVRLA Leasing Outlook Report also reveals that the nationwide switch to electric vehicles has seen emission levels for new cars joining company fleets fall to record lows.

Leasing companies report that average emissions of new vehicles delivered to BCH customers during Q4 2021 were down 27% year-on-year to just 58.4g/km. Average emissions of vehicles delivered to personal contract hire customers were down 8% to 93.8g/km over the same period.

Overall, CO2 emissions for new car deliveries are down 21%, which has reduced average emissions for the total BVRLA car fleet to 102.7g/km.

To access the latest BVRLA Leasing Outlook Report, click here.