Electric cars have hit a record market share in the order banks at Fleet Alliance, with the Tesla Model 3 and Model Y topping the charts.

The Tesla Model 3 topped the charts

In the first five months of 2024, 77% of Fleet Alliance vehicle orders have been battery electric vehicles (BEVs) and hybrids (42% and 35% respectively), the highest market share for both model types to date.

And models from Tesla have been the standout performers, with the Model 3 topping the charts and its Model Y stablemate in second place.

Fleet Alliance said more and more employees are switching onto the cost- and tax-saving benefits of electric and hybrid cars.

“There is little surprise that EVs dominate our order books,” said 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.”

Top 10 electric cars year to date at Fleet Alliance:

Fleet Alliance added that Tesla models appeal to drivers based on their long range and performance, as well as their Benefit-in-Kind tax and cost advantages.

Andy Bruce contrasted the BiK tax bills for a Model 3 with a comparable Audi 3 to underline the tax savings available.

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, incurring a  £2,205 annual tax bill for a 20% taxpayer and double that for a higher-rate taxpayer.

“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,” said Bruce.

“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 continued.

Other popular models in the Fleet Alliance electric order banks are the MG4, BMW i4 and the Audi Q4 e-tron.

“You can see from our top ten that there are now electric cars to meet all tastes and budgets,” said Bruce. “Given the wide choice available, we believe there has never been a better a time for organisations to offer their staff the opportunity to take advantage of the benefits that exist on electric cars, be that through a company car scheme or salary sacrifice.

“Our customers certainly agree and our forward order banks clearly prove that this is the case,” he added.