Battery electric cars (BEVs) and plug-in hybrids (PHEVs) have claimed a record market share of new vehicle orders last year at Glasgow-based fleet management and leasing specialist, Fleet Alliance.
BEVs and PHEVs accounted for 84% of all vehicle orders new vehicle orders, the highest full year result for EVs so far at the company.
The trend has also continued into 2026, with current order banks showing an 85% market share for both model types combined to date.
For business customers of Fleet Alliance, contract hire remains the most popular funding method for electric cars with 67% of all EVs being funded in this way.
However, salary sacrifice, in line with the national trend, continues to grow in popularity with Fleet Alliance customers and last year funded 31% of EVs. Personal contract hire fell to just 1% of funded electric vehicles.
“We continue to see record orders of BEVs and PHEVs with the switch to electrification continuing to accelerate amongst our business customers,” said Fleet Alliance CEO, Andy Bruce.
“The electrification movement continues to gather pace helped by still-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.
“And there has undoubtedly been an uplift from the impact of the recently revised Electric Car Grant, which at a maximum of £3,750 for new, eligible battery electric vehicles priced at or below £37,000, is available to business as well as retail customers,” he added.
When it comes to the most popular electric cars and hybrids on the Fleet Alliance fleet in 2025, latest analysis shows that Tesla models have recaptured the top spots with the Model 3 in first place in 2025 and the Model Y in second.
While mainstream manufacturers, such as BMW, Volkswagen and Volvo, continue to figure prominently in the Fleet Alliance electric charts, there is an appearance in the annual top ten for the first time for the Chinese BYD Seal, with its claimed 354-mile range.
The wide choice of BEVs and PHEVs available was again a factor in the rise of more environmentally friendly motoring, explained Andy Bruce.
At the November 2025 Budget, the government confirmed that from April 2028, electric and plug-in hybrid cars would move to a simple ‘pay-per-mile’ road charge. This would see BEVs charged at 3p per mile and PHEVs at 1.5p per mile.
However, Bruce remained upbeat about its impact. “Crucially, this newly announced change is several years away, giving fleets and drivers plenty of time to plan and allowing providers to build the costs into future quotations.
“EVs are still taxed at half the rate of petrol and diesel cars; the extension of the Expensive Car Supplement to 50K, also announced at the Budget, is genuinely good news for many EVs; and extra grant funding will help support EV affordability and residuals.
“These factors taken together, even with the impact of the new mileage charge to come, mean that EVs remain one of the most cost-effective choices for a company car or salary sacrifice driver, with lower tax, lower fuel costs and a clearer long-term tax framework than ever before,” he said.
“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 opening order banks for 2026 clearly prove that this is the case,” he added.
