BEVs and PHEVs take record share of Fleet Alliance fleet

Battery electric vehicles (BEVs) and plug-in electric hybrids (PHEVs) have achieved a record market share in the order banks at Fleet Alliance.

During the second half of 2024, electrified cars accounted for 79% of new car orders on the Glasgow-based company’s managed fleet of more than 30,000 vehicles.

The trend has continued 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.

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

1. Tesla Model 3
2. Tesla Model Y
3. Polestar 2
4. MG4
5. Mercedes EQA
6. BMW i4
7. Mercedes EQB
8. Cupra Born
9. Audi Q4
10. 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.

In second place is the Tesla Model Y, an updated version of which is set to go on sale at the end of this month.

Bruce continued: “Electric cars and hybrids currently dominate our corporate order books, and some 47% of our entire managed fleet now comprise either BEVs or hybrids. That ratio will undoubtedly continue to increase over the next 12 months.”

He added: “In terms of funding methods, salary sacrifice has proven to be an enormously popular method of acquiring a new electric car and almost a quarter of all BEVs are now funded through this method on our fleet.” 

Bruce expects the switch to electric to further accelerate over the coming months.

“It’s clear that tax incentives, coupled with companies’ own ESG (environmental, social and governance) 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,” he said.

However, he added: “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.”