BVRLA: 53% of new business contract hire are BEVs
The British Vehicle Rental and Leasing Association (BVRLA) has seen an uplift in demand for EVs in its latest leasing outlook survey.
The study, which shows data until the end of 2022, has revealed a 0.3% growth in total fleet with a “continued resurgence” of Business Contract Hire (BCH) – up 4.0% year on year.
It said the rise was due to clarity on electric company car tax rates with 53% of new BCH additions being Battery Electric Vehicles (BEVs).
This continued shift has again resulted in the cleanest BVRLA leasing fleet recorded. Average car emissions have improved 16% in the last five years and are down to 95.6g/km.
For the van market, diesel remains the preferred fuel type. Vans have led the growth of used vehicle leasing, as leasing companies have found ways to overcome vehicle supply issues and flatten risks associated with new technologies. Used van leasing has grown 123% with longer initial lease periods becoming more popular.
BVRLA chief executive, Gerry Keaney, said: “On the backdrop of an incredibly turbulent year, we are again reporting growth. As we face inflationary cost pressures, high interest rates and global uncertainty, it is vehicle supply that is pulling up the handbrake. A favourable tax regime coupled with the agility of our sector is creating demand for vehicles unlike anything we’ve seen. Supply simply must catch up.”
“New business models and changing usage patterns are demonstrating the adaptability of the sector. The data paints a picture of innovation, resilience, and an unwavering commitment to keep people mobile. To surpass pre-pandemic levels is a crucial milestone and enables us to look forward with optimism.”
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