Fleet Finance News

Electric cars hit record share

Andy BruceFleet Alliance CEO

Electric cars have hit a record market share in the order banks at Glasgow-based fleet management and leasing specialist, Fleet Alliance, with Elon Musk’s Tesla Model 3 and Model Y topping the charts.

In the first five months of 2024, 77% of Fleet Alliance vehicle orders have been battery electric vehicles (BEVs) (42%) and hybrids (HEV) (35%), the highest market share for both model types to date as more employees have seen the cost and tax-savings potential and switched to electric and hybrid cars.

And models from all-electric US brand Tesla have been the stand-out performers, with the Model 3 topping the charts and its Model Y stablemate in second place.

There is little surprise that EVs dominate our order books,” says Fleet Alliance CEO, Andy Bruce, “as they combine advantageous tax breaks with a sustainable solution for fleet managers, whether as company cars or through EV salary sacrifice provision.”

The top 10 electric cars at Fleet Alliance (year to date) are:

  • Tesla Model 3
  • Tesla Model Y
  • MG4
  • BMW I4
  • Audi Q4
  • Mercedes EQA
  • Cupra Born
  • Mercedes EQB
  • Skoda Enyaq
  • Polestar 2

Topping the 2024 Fleet Alliance charts is the latest Tesla Model 3 saloon followed by the Model Y, last year’s favourite with Fleet Alliance customers, when it was also the best-selling EV in Europe.

“Tesla has been the outstanding electric car brand for a number of years and offers a number of Benefit in Kind tax and cost advantages which really appeal to our customers, “said Andy Bruce.

Comparing the BIK tax bills for a Model 3 with a comparable Audi 3, Bruce noted the tax savings available for electric cars.

 “A petrol-powered Audi A3 saloon 35 TFSI Black Edition 150PS S Tronic costing £35,570 and emitting 132g/km of CO2 falls into the 31% tax band based on its emissions.

“That means a driver pays tax on 31% of the car’s taxable value of £35,570, which equates to £11,027. As a result, a 20% taxpayer incurs a £2,205 annual tax bill and a higher-rate taxpayer double that.

“However, a Tesla Model 3 saloon RWD 4dr auto costing £42,935 would have a taxable value based on only 2% of its price, which comes to £859. Therefore, a 20% taxpayer would pay just £172 annually, £2,033 less each year than the Audi.

“Over a four-year replacement cycle, the tax savings for the Tesla driver total thousands of pounds, which we are certain is a powerful incentive to consider switching to the US brand,” he said.