During the second half of 2024, battery electric vehicles (BEVs) and plug-in electric hybrids (PHEVs) accounted for 79% of Fleet Alliance new car orders on its managed fleet of over 30,000 vehicles.
And the trend has continued apace into 2025 with the current order pipeline comprising 82% of BEVs and PHEVs - the highest market share for both model types so far recorded by the company - as the cost and tax-savings potential of both become increasingly apparent to fleet managers and drivers alike.
For business customers of Fleet Alliance, contract hire remains the most popular funding method for electric cars with 74% of all BEVs being funded in this way in 2024, while salary sacrifice continues to grow in popularity, accounting for 23% of all BEVs ordered in the last 12 months.
Models from all-electric US brand Tesla remain the stand-out choice with both businesses and drivers, with the Model 3 topping the sales charts and its Model Y stablemate in second place for the second year in a row.
Top 10 battery electric cars 2024
| Tesla Model 3 |
| Tesla Model Y |
| Polestar 2 |
| MG4 |
| Mercedes EQA |
| BMW i4 |
| Mercedes EQB |
| Cupra Born |
| Audi Q4 |
| Skoda Enyaq |
Source: Fleet Alliance
“Both BEVs and PHEVs continue to dominate our order books, offering as they do advantageous tax breaks and a low carbon option for businesses, and an attractive tax- and cost-effective way of acquiring an electric car for employees,” said Fleet Alliance CEO, Andy Bruce.
Topping the 2024 Fleet Alliance electric car charts is the latest Tesla Model 3 saloon, which now boasts its longest ever range, following the autumn launch of a new Long Range variant with a 436-mile range and a starting price of £44,990.
In second place is the Model Y, an updated version of which is set to go on sale at the end of this month. The Model Y features a new-look front end which takes inspiration from Tesla's Cybertruck and which Tesla claims benefits both aerodynamics and safety.
“It is perhaps unsurprising that Tesla continues to claim first and second places in our top ten charts as it has been the outstanding electric car brand for a number of years now. Both models offer benefits in terms of low monthly rentals and BIK rates which really appeal to our customers, “said Andy Bruce.
In third place was the Polestar 2, jumping from tenth place halfway through the year to third place in a strong second-half sales performance. New batteries give ranges from 322-406 miles with a starting price of around £44,950.
Other models to feature in the Fleet Alliance top ten included the MG4, Mercedes EQA, BMW i4 Mercedes EQB, Cupra Born, Audi Q4 and Skoda Enyaq.
Bruce said that he expected the swing to electric to further accelerate over the coming months.
“It’s clear that tax incentives, coupled with companies’ own ESG* agendas, are powering the adoption of EVs in the business sector and this seems set to continue with clarity on favourable BIK rates now announced to the end of the decade. “
However, Bruce said that concern remained about take-up of EVs amongst private buyers, with news from automotive industry body, the SMMT, that EVs accounted for less than 1 in 10 new private sales in 2024.
“It is imperative that private buyers are encouraged through incentivises by government to take up EVs as they lag massively behind the corporate sector.
“Some of this is happening via salary sacrifice but for retail customers without access to this increasingly popular benefit, there needs to be a coordinated and committed government approach with incentives for private buyers if they’re serious about their Net Zero ambitions,” he said.
*ESG (environmental, social and governance)
