Fleet and private EV uptake diverges
The gap between private and fleet uptake of electric vehicles is continuing to get wider.
According to the latest Leasing Outlook report from the BVRLA, which looked at data collated during the first three months of 2024, electric vehicles accounted for 41% of all new business contract hire (BCH) cars in the first quarter.
Meanwhile, salary sacrifice schemes were up 63% with EVs making up the ‘overwhelming majority’ of these registrations.
Together, BHC and salary sacrifice has helped drive EVs to 37% of all new car sales during the period.
Used electric cars
Demand is also up (7.7%) among fleets for used electric cars through car leasing as it enables companies to meet emissions and sustainability targets without taking on the risk of falling residual value.
In contrast, private uptake has tailed off since financial incentives to go electric were withdrawn.
Toby Poston, BVRLA director of corporate affairs, said: “The current trajectory of the transition to EVs is increasingly one of the haves and the have-nots. Phase-out targets and sales mandates are beginning to force the industry’s hand but will not succeed in isolation.
“Where incentives have been present, registrations have followed. The sectors currently benefiting from such support cannot bear the weight of the full transition alone. As the divergence between corporate and new and used private demand grows, the financial risk associated with bearing that risk becomes unsustainable.”
