Electric vehicles take record share of Fleet Alliance orders

Battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) accounted for a record share of new vehicle orders in 2025 at Fleet Alliance, reflecting continued growth in electrification among corporate fleets.

The Glasgow-based fleet management and leasing specialist said BEVs and PHEVs made up 84% of all new vehicle orders during 2025, the highest annual share recorded by the company. Early data for 2026 suggests the trend is continuing, with the two vehicle types representing around 85% of current orders.

Contract hire remained the most common financing method for electric vehicles among Fleet Alliance customers, accounting for 67% of EV funding arrangements. Salary sacrifice schemes funded 31% of electric vehicles during the year, while personal contract hire represented 1%.

Bruce said the transition has been supported by favourable company car tax policies and government incentives. “The electrification movement continues to gather pace helped by still-advantageous tax breaks, with a current rate of company car tax of just 5% by 2027/8. That’s a huge financial incentive for would-be company car buyers as well as providing certainty about future tax levels,” he said.

He also pointed to the recently revised UK Electric Car Grant, which offers up to £3,750 for eligible battery electric vehicles priced at £37,000 or less, as another factor supporting demand among business and private buyers.

Fleet Alliance’s internal data for 2025 showed models from Tesla occupying the top two positions among electric and hybrid vehicles ordered through the company. The Tesla Model 3 ranked first, followed by the Tesla Model Y.

Other models in the top 10 included the Volkswagen Tiguan, Polestar 4, Polestar 2, Volvo XC60, BMW i4, the BYD Seal, Audi Q6 and Audi Q4.

The appearance of the BYD Seal in the list reflects the growing presence of Chinese manufacturers in the European market. BYD recorded 51,422 sales in the UK last year, representing a 485% year-on-year increase.

Bruce said the broader range of electric and hybrid vehicles now available across different price points has contributed to higher adoption among fleet customers.

The UK government confirmed in its November 2025 budget that from April 2028 electric and plug-in hybrid vehicles will be subject to a road-use charge based on distance travelled, set at 3 pence per mile for BEVs and 1.5 pence per mile for PHEVs.

Despite the planned change, Bruce said the long lead time gives businesses and leasing providers time to prepare. “EVs are still taxed at half the rate of petrol and diesel cars; the extension of the Expensive Car Supplement to £50,000 is good news for many EVs; and extra grant funding will help support EV affordability and residuals,” he said.

“These factors taken together, even with the impact of the new mileage charge to come, mean that EVs remain one of the most cost-effective choices for a company car or salary sacrifice driver,” Bruce added.