Business demand for electrified vehicles ‘overtakes ICE’

Electrified vehicles were more popular than diesel and petrol vehicles combined in the business contract hire (BCH) market in the first six months of 2023, new data suggests.

Figures from Leasing.com show that electrified vehicles, including hybrids and battery electric vehicles (BEVs), accounted for more than half (56%) of total BCH sales enquiries.

This compared to diesel vehicles which accounted for 20% of enquiries, a significant 40% reduction on the corresponding period in 2022, and petrol vehicles which took a 23% share of business demand.

BEVs were particularly in-demand, accounting for just under 42% of total business contract hire demand.

The Tesla Model Y, BMW iX and Tesla Model 3 were the top three most popular cars on business contract hire in the first-half of the year. 

Paul Harrison, chief partnerships officer at Leasing.com, said: “The significant uplift in BEV demand amongst business users is a positive step towards net zero and improving air quality.

“The current success of BEVs seems to be won and lost on price and business contract hire helps to ensure affordable, fixed cost motoring for businesses.

“As an industry we have to help motorists overcome any concerns they have with costs, charging and infrastructure despite the current negative media campaigns.”

Fleets, rather than private buyers, continue to drive the growth in EVs, thanks to low benefit-in-kind (BIK) tax rates. 

Data from the Society of Motor Manufactures and Traders (SMMT) reveals that 24,953 new BEVs were attributed to business and fleet buying in June, and just 6,747 to private buyers.