Electric cars and hybrids claimed a record 81% market share in the first half of this year at Glasgow-based fleet management and leasing specialist, Fleet Alliance, as more business customers made the move to electric power.
In the first six months of 2025, Fleet Alliance new vehicle orders comprised 45% battery electric vehicles (BEVs) and 36% hybrids, the highest market share for both model types to date. In the current order pipeline, the combined figure is even higher at 83%.
For business customers of Fleet Alliance, contract hire remains the most popular funding method for electric cars with 70% of all BEVs being funded in this way, while salary sacrifice continues to grow in popularity, accounting for 29% of all BEVs ordered in the last six months, with just 1% on personal contract hire.
The results are ahead of national figures, with SMMT statistics showing that there have been 254,666 BEVs sold so far this year in the UK, a 31% rise on the same period last year, while sales of PHEVs are also up by 31.5% to 124,528 units.
“We are actually outpacing national trends, as we continue to see record orders of BEVs and hybrids,” said Fleet Alliance CEO, Andy Bruce.
“As companies look to reinforce their ESG agendas, the electrification movement continues to gather pace helped by 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.”
When it comes to the most popular BEVs, latest analysis shows that Swedish manufacturer, Polestar, co-owned by Volvo Car Group and Zhejiang Geely Holding Group, has been making inroads into the leading positions previously enjoyed by Elon Musk’s Tesla models.
The Polestar 4, a stylish electric coupe which went on sale a year ago, came in second place in the half yearly figures, with stablemate, the Polestar 2, also featuring in the Fleet Alliance top ten in eighth place.
The Tesla Model Y claimed top spot with the Model 3 in third place despite falling sales across Europe and criticism of the US manufacturer’s attitude towards fleet operators in the UK.
Top 10 battery electric vehicles Jan-Jun 2025
1. | Tesla Model Y |
2. | Polestar 4 |
3. | Tesla Model 3 |
4. | BMW i4 |
5. | Volkswagen id.7 |
6. | BYD Seal |
7. | Mercedes EQ |
8. | Polestar 2 |
9. | Porsche Macan |
10. | Mercedes EQB |
While mainstream manufacturers, such as BMW, Volkswagen and Mercedes, continue to figure prominently in the Fleet Alliance electric charts, there is an appearance for the first time in sixth place for the Chinese BYD Seal, with its claimed 354-mile range.
Well-established in China and selling in huge numbers globally, BYD is making inroads into the UK market with 3,184 models sold in July for a 2.27% market share (source: SMMT).
Hybrids, both plug-in and self-charging, also figure prominently in the most popular vehicles with Fleet Alliance customers, with the Volkswagen Tiguan eHybrid topping the top ten hybrid sales charts.
A plug-in hybrid version of the Tiguan SUV, featuring a 1.5-litre TSI petrol engine paired with an electric motor and a 19.7kWh battery, the Tiguan eHybrid offers a combined output of 204hp or 272hp and an impressive all-electric range of up to 77 miles.
Top ten hybrids Jan-Jun 2025
1. | Volkswagen Tiguan |
2. | BMW 3-Series |
3. | Volvo XC90 |
4. | Cupra Formentor |
5. | Hyundai Tucson |
6. | Kia Sportage |
7. | Volvo XC60 |
8. | Renault Symbioz |
9. | Toyota Corolla |
10. | Mercedes GLC |
The wide choice available was a factor in the rise of more environmentally friendly motoring, said Andy Bruce.
“As you can see from our top ten sales charts, there are now electric cars and hybrids to meet all tastes and budgets.
“And the switch to electric looks set to be given a further boost by the newly announced Electric Car Grant (ECG), with grants from £1,500 to £3,750 off the cost of any new electric car with an initial list price of up to £37,000.
“This will, we believe, enhance the popularity of BEVs still further within the business sector.
“Given the wide choice available, we believe there has never been a better a time for organisations to offer their staff the opportunity to take advantage of the benefits that exist on electric cars, be that through business contract hire or salary sacrifice. Our forward order banks clearly prove that this is the case,” he added.
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