Plug-in hybrids almost double company car market share

Plug-in hybrid electric vehicles (PHEVs) have taken market share from pure electric company cars, according to the latest data from Cap HPI’s Insight report.

In the first two months of the year, battery electric vehicles (BEVs) accounted for more than a third (35%) of the fleet market, down from almost half (44.5%) at the start of last year.

Diesel and petrol market share also fell, from 5.4% to 4.5% and 30.1% to 28.1%, respectively.

However, Cap HPI analysis suggests that PHEV market share almost doubled from 14% at the start of last year to 26.6% in the first two months of 2024.      

Andrew Turner, senior product specialist at Cap HPI consulting, said: “The first two months have been a strong period for PHEV, with the Insight market share growing by over 12%, whereas BEV share dropped by nearly 10% while retaining the highest overall fuel share in this market.

“The BEV share of 35% is somewhat down on the overall 2023 share of nearly 49%.”

In terms of total fleet registrations, Cap HPI says that they were some 9.7% lower than the same period last year.

Looking at individual fuel types, diesel volumes fell by 25.2%, BEV by 29.1% and petrol by 15.7%, while PHEV increased by a marked 71.7%.

Turner explained: “The market experienced a fall at the start of the year against a stronger 2023. It’s likely driven, at least in part, by the slow start to BEV registrations we’ve seen in 2024, given their huge popularity in this sector.”

Cap HPI’s analysis comes after new car sales figures from the Society of Motor Manufacturer and Traders (SMMT) for March showed that petrol cars retained the lion’s share of the overall market, at 55.7%, with registrations up 9.2% year-on-year, as diesel volumes fell 2.7% to account for just 7.3% of demand.

Uptake of hybrid electric vehicles (HEVs) reached record levels, rising by 19.6% to 44,550 units and 14% of the market, while the biggest percentage growth was recorded by plug-in hybrids, up by more than a third to 24,517 units, or 7.7% of all new registrations. 

Looking at the popularity of individual models in the fleet sector, Cap HPI reports that the Audi A3 made a strong start to 2024, with the PHEV versions leading the way. 

The two Tesla ranges make up the top three for February. Year to date, 2023's highest volume fleet car, the Tesla Model Y, has climbed to third.