Salary sacrifice specialist Fleet Evolution reports record year

Fleet Evolution achieved a record year in 2024, thanks to lower rentals, a wider choice of electric cars and the continued availability of plug-in hybrid electric vehicles (PHEVs).

Sales last year were 102.5% of the previous 12 months as greater choice of more affordable EVs brought the median salary sacrifice for cars on the fleet down to £480 per month net, with a number of additions to choice lists coming in at under £300 per month.

With renewals running at over 70% across the Fleet Evolution fleet, more than half (50%) of those employees who did not renew actually bought their current electric car, signalling that they had enjoyed the electric driving experience, while some customers’ employees are now on their fifth-generation electric car.

A significant factor in the stellar growth rate of 2024 was the continued availability of PHEVs on corporate choice lists, said Andrew Leech, founder and managing director of Fleet Evolution.

“Previous experience has shown us that some 70% of drivers of PHEVs transition to battery electric models (BEVs) for their next car, making them the perfect stepping stone to going down a fully electric route - especially when offered through a salary sacrifice scheme,” he explained.

“And, as we know, there are still 40% of car buyers who are unable to charge at home and therefore unable to take advantage of the excellent benefit of an electric car.

“To provide a more inclusive offering to our clients, we have deliberately kept PHEVs on choice lists and, as a result, have seen a significant increase in new vehicle orders as a result.”

Another factor behind the record year was the installation of charge points at customer workplaces. Fleet Evolution offers a free workplace charge point to any customer who takes over five electric cars.

As a result, the company installed 80 workplace charge points during 2024, which had a knock-on effect to electric car orders.

“We had over 100 extra EV orders from businesses where the employee was unable to charge at home but could do so in the company car park as a result of the free chargers,” said Leech.

Topping the Fleet Evolution sales charts for 2024 was the MG4, followed by the Tesla 3 and Tesla Y, the Volvo EX30 and the Polestar 2. 

The leading manufacturer, however, was the Volkswagen Group, including the Audi, Volkswagen, Skoda and Porsche brands.

Leech added: “We have seen a greater choice of EVs over the last 12 months and were able to introduce several makes, including MG and BYD, with rentals that were under £300 net for the first time, with the effect of bringing median rentals down across the fleet.”