Some 42% of new vehicles added to the leasing fleet were battery electric vehicles (BEV) in the third quarter of 2023, figures have revealed.
The BVRLA statistics show that the sector is already operating 400,000 BEVs, which is more than a third of total cars on the overall leasing fleet. In addition, the average age of cars on the fleet is just over three years, highlighting the role of the sector in feeding the used EV market with reliable second-hand EV cars too.
Strong tax incentives, a predictable cost of ownership and leasing taking on price fluctation has resulted in the good performance of the company-provided electric car market, according to the BVRLA. Salary sacrifice schemes are being used in particular for the transition with year-on-year growth of 68%.
The personal lease market was less strong due to less tax incentives and higher energy costs at present as well as VED supplement for some electric cars from April 2025.
Gerry Keaney, BVRLA Chief Executive said: “Fleet leasing is helping to deliver decarbonisation at pace. Business customers and fleet users have paved the way. That blueprint must now be utilised to help retail buyers and those in the used market follow suit.
“The UK has set ambitious targets through the ZEV mandate. The leasing sector is an essential partner to vehicle manufacturers as they ramp up their sales of zero-emission vehicles.”
While the picture for cars is a positive one as demand for EVs will grow again in 2024, the electric van market is less clear, the BVRLA said. Vehicle suitability, transition costs, and infrastructure accessibility remain the crucial barriers to overcome. In response, the BVRLA is working with other trade associations and CV bodies to address key concerns and show van operators how to make the switch effectively. A new electric ‘Van Plan’ is being launched in Q1 2024, it said.
Keaney concluded: “With the introduction of the ZEV mandate officially mapping the UK’s journey to road transport decarbonisation, 2024 marks another critical year for the transition.
“Opportunities to support the switch are out there. It is now up to us to collectively grab them with both hands.”
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