Electric vehicles were more popular than diesel and petrol vehicles combined in the business contract hire (BCH) market in the first six months of 2023.

Electric vehicles were more popular in the business contract hire market in the first half of 2023

Data from Leasing.com shows that all electric vehicles (consisting of plugins, hybrid and battery) accounted for nearly 56% of total BCH sales enquiries in the first-half of this year. This compared to diesel vehicles which accounted for 20% of enquiries so far in 2023, a 40% reduction on the corresponding period in 2022, and petrol vehicles which took a 23% share of business demand. The reduction in business demand for ICE vehicles represents a positive step in behaviour towards the decarbonisation of the UK’s roads.

Battery electric vehicles (BEVs) were particularly in-demand, thanks in part to a preferential tax regime, accounting for just under 42% of total business contract hire demand. The Tesla Model Y, BMW iX and Tesla Model 3 were the top three most popular cars on business contract hire in the first-half of the year.

Paul Harrison, chief partnerships officer at Leasing.com, said: “The significant uplift in BEV demand amongst business users is a positive step towards Net Zero and improving air quality. The current success of BEVs seems to be won and lost on price and business contract hire helps to ensure affordable, fixed cost motoring for businesses. As an industry we have to help motorists overcome any concerns they have with costs, charging and infrastructure despite the current negative media campaigns.”