Lower rentals and wider EV choice help drive record year

Lower rentals, wider choice of electric cars and the continued availability of plug-in electric vehicles (PHEVs) have helped Tamworth-based salary sacrifice and fleet management specialist, Fleet Evolution, achieve a record year in 2024.

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, over 50% of those employees who did not renew actually bought their current electric car, signaling that they had thoroughly enjoyed the electric driving experience, while some customers’ employees are now on their fifth-generation electric car.

“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.

“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.

“By including PHEVs, companies are providing more flexibility and are not risking alienating those of their employees who cannot charge at home and have to rely on public charging,” explained Leech.

Another factor behind the record year was the installation of charge points at customer workplaces. Fleet Evolution offers a free workplace chargepoint 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,” explained Leech.

Topping the Fleet Evolution sales charts for 2024 was the ever-popular 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.

“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, “added Leech.