BVRLA members’ fleets have grown due to increased demand for business contract hire, and an explosion in salary sacrifice take-up, according to new data.
The rental and leasing industry body’s latest Leasing Outlook report shows a 1.4% year-on-year increase in overall fleet numbers, driven by a 6.3% growth in the business contract hire car fleet, and 51% growth in salary sacrifice.
These were enough to offset a 15.1% decline in personal contract hire cars, and a 3.3% decline in the overall van fleet.
EVs have continued to see strong demand from the fleet market, accounting for 53% of all new business contract hire cars during the data period (Q3 2024), bringing the average new car CO2 emissions figure for this sector down to 61.3g/km. For salary sacrifice, the new EV market share rose to 87%.
BVRLA chief executive Toby Poston said: “Salary sacrifice is the zero-emission transition’s driving force. Its popularity continues to grow, bolstered by a wave of smaller, cheaper electric vehicles and innovative new leasing products providing second hand EVs.
“More employers are seeing the appeal and more employees – at all income levels – can make the switch.”
Despite the strong business demand for EVs, the BVRLA warned that high depreciation on the vehicles had affected leasing and finance companies, with concern that uptake would fall if the matter was not addressed.
Poston said: “The fleets that have championed the switch to zero-emission vehicles are now being hit with eyewatering costs in vehicle depreciation.
“Our Happy EV After campaign highlights how support is required to help bring confidence and stability back to this vital part of the automotive ecosystem.
“Supply of used BEVs will continue to surge and we must work with government and wider industry to create and sustain demand for these vehicles.”