Tax and National Insurance (NI) savings are the top reason employees choose an electric vehicle (EV) through a salary sacrifice scheme, according to Tusker’s latest EV Driver Survey Report 2025.
The research of more than 6,600 people found that 38% of employees with an EV cited the tax and NI savings as their main motivation for going electric, up from 31% last year.
Fuel savings were the next biggest driver at 28%, while just 20% named environmental benefits as their primary reason for switching.
Price, tax benefits or affordability on a salary sacrifice scheme were the top reason for 69% of non-EV drivers to choose an EV as their next car, followed by 62% citing cheaper running costs. Environmental benefits only concerned 38% of employees – almost half of those wanting it for the savings.
Concerns around charging infrastructure, which has often been seen as a barrier to adoption, are also easing. Worries over charge point availability have dropped sharply from 73% in 2024 to 52% this year. Fewer drivers are concerned about the range of vehicles – down from 70% to 47% – and anxiety about how long EVs take to charge has fallen from 60% to 36%.
The survey also shows the wider impact of EV benefits on employee satisfaction. Among Tusker drivers, 96% report they are satisfied or very satisfied with their EV, up from 93% last year, and only 3% plan to go back to drive a petrol or diesel car.
Kit Wisdom, Managing Director at Tusker, said:
“Much of the EV market’s growth is being driven by salary sacrifice car schemes, where people are making excellent use of the tax and National Insurance (NI) savings available. Research by the British Vehicle Rental & Leasing Association (BVRLA) suggests the use of salary sacrifice grew by 51% in the 12 months to January 2025, partly as a result of smaller and cheaper EVs and new leasing models, including for second-hand EVs.
“Employers also gain from NI savings; plus, as employees are more likely to join an organisation – and stay, employers see improvements in recruitment and retention figures.
“Our survey shows that once drivers make the switch, they don’t look back. The vast majority are satisfied with their EVs, enjoy lower costs and plan to stay electric for the long term. That’s why salary sacrifice is so important: it helps overcome affordability barriers while boosting employee engagement, retention and sustainability commitments”.
Image of report courtesy of Tusker
