Electric cars claim record market share at Fleet Alliance

Electric vehicles (EVs) and hybrids have achieved a record-breaking market share at Fleet Alliance in the first half of 2025, as more UK businesses embrace greener mobility solutions.

Glasgow-based fleet management and leasing specialist Fleet Alliance reported that 81% of all new vehicle orders from January to June were either battery electric vehicles (BEVs) or hybrids – its highest figure to date. BEVs accounted for 45% of orders, while hybrids made up 36%.

The momentum shows no sign of slowing, with Fleet Alliance’s current order pipeline sitting even higher at 83%.

“We are actually outpacing national trends, as we continue to see record orders of BEVs and hybrids,” said Andy Bruce, CEO of Fleet Alliance.

“As companies look to reinforce their ESG agendas, the electrification movement continues to gather pace, helped by advantageous tax breaks and the certainty around future tax levels.”

According to the Society of Motor Manufacturers and Traders (SMMT), 254,666 BEVs have been sold across the UK so far this year, up 31% year-on-year, while plug-in hybrid vehicle (PHEV) sales have climbed 31.5% to 124,528 units. Fleet Alliance’s figures show significantly stronger growth compared to these national averages.

Among Fleet Alliance’s business customers, contract hire remains the dominant funding method, accounting for 70% of all BEV acquisitions. Salary sacrifice schemes are also gaining ground, representing 29% of BEV orders over the past six months, while personal contract hire makes up just 1%.

Fleet Alliance’s analysis of its best-selling EVs reveals a shift in market dynamics. While Tesla retains leadership, with the Model Y topping the BEV chart and the Model 3 in third, Swedish manufacturer Polestar – co-owned by Volvo Car Group and Zhejiang Geely Holding Group – has rapidly gained ground.

The Polestar 4 secured second place, while the Polestar 2 broke into the top ten at eighth. Notably, Chinese automaker BYD made its first appearance in the Fleet Alliance rankings, with the BYD Seal taking sixth place thanks to its 354-mile claimed range and growing popularity in the UK.

Hybrid vehicles continue to play a significant role in Fleet Alliance’s fleet mix. The Volkswagen Tiguan eHybrid led hybrid sales, offering up to 77 miles of all-electric range and a combined power output of up to 272hp.

The introduction of the Electric Car Grant (ECG) is expected to accelerate EV adoption further. The scheme offers grants of £1,500 to £3,750 on new electric vehicles priced up to £37,000, making EVs more accessible for businesses and drivers alike.

“Given the wide choice available, we believe there has never been a better time for organisations to offer their staff the opportunity to take advantage of the benefits that exist on electric cars,” said Bruce. “Our forward order banks clearly prove that this is the case.”