Company EVs boost BVRLA leasing fleet
The popularity of company-provided electric vehicles (EVs) saw the BVRLA’s leasing fleet grow 1.4% in the last 12 months, it has reported.
The association said its latest leasing outlook report that salary sacrifice continues to drive growth in the sector, up 51% and sustaining the UK’s transition to cleaner, greener models.
The sustained growth of salary sacrifice contributed to the BVRLA leasing fleet reaching 1.94m vehicles, with Business Contract Hire (BCH) accounting for the biggest portion of the fleet and delivered growth of 6.3%. BCH and salary sacrifice benefit from the fair company car taxation regime on electric vehicles, with Benefit in Kind rates confirmed through to the 2029/30 tax year.
The report also showed that Personal Contract Hire (PCH) agreements, which don’t benefit from the same incentives, caused demand for EVs to be slower compared to company-provided cars. Additional cost pressures brought on by higher interest rates, the cost of living crisis, and overall rise in new vehicle prices, have combined to see PCH demand fall 15.1% year on year.
The strength of BCH and Salary Sacrifice is helping the UK accelerate adoption of electric cars and has made the BVRLA leasing fleet the cleanest it has ever been, it said. Electric was the most popular fuel type of new vehicles added to the fleet in Q3 2024, accounting for 44% of new additions (petrol: 23%). When considering salary sacrifice in isolation, 87% of new orders were for BEVs in Q3 2024.
Toby Poston, BVRLA Chief Executive said:
“Salary sacrifice is the zero-emission transition’s driving force. Its popularity continues to grow, bolstered by a wave of smaller, cheaper electric vehicles and innovative new leasing products providing second hand EVs. More employers are seeing the appeal and more employees – at all income levels – can make the switch.”
“The fleets that have championed the switch to zero-emission vehicles are now being hit with eyewatering costs in vehicle depreciation. Our Happy EV After campaign highlights how support is required to help bring confidence and stability back to this vital part of the automotive ecosystem. Supply of used BEVs will continue to surge and we must work with Government and wider industry to create and sustain demand for these vehicles.”