Tusker CO2 hits new low on back of rising fleet demand for EVs
Tusker’s average CO2 emissions has fallen below 50g/km for new car orders as a result of ‘phenomenal’ EV take-up, including among the grey fleet.
The salary sacrifice specialist has seen the average CO2 emission level of its new car orders fall by 15.5%, from 59.0g/km to 49.8g/km, in the first quarter of 2021.
The fall is the result of fast-rising take-up of hybrid and electric cars by its customers.
Over two-thirds (69%) of its new car order bank at the end of March was for electric and plug-in hybrid cars, split 42%/27%. This compares to just 2% and 14% respectively for the same period in 2019.
“The speed at which companies and drivers are embracing hybrid and electric cars is phenomenal, and it’s great to see our order bank fall below 50g/km for the first time,” said Paul Gilshan, Tusker’s CEO.
The fall comes on the back of introduction of the 0% Benefit-in-Kind rate for zero-emission cars in 2020/21, which has risen to just 1% for the current tax year.
Demand for salary sacrifice is particularly being seen from the grey fleet sector – Tusker said take-up is happening across the board, but it has particularly seen a move to salary sacrifice in the public sector during the pandemic from the likes of community nurses who need to travel for their work but who do not necessarily have business-use insurance cover.
Tusker data shows increasing demand from 20% taxpayers – who accounted for 62% of new car orders in March 2021 compared to 58% in March 2020. The average P11D value of cars being added to the Tusker fleet has reduced accordingly from an average of £39,029 a year ago to £38,343 now.
Tusker is also cutting emissions on its own 50-strong internal fleet, now sitting at an average CO2 emission value of just 29.4g/km. It has received just two orders for internal combustion engine cars since 2019.
“It is perfectly feasible that most of our fleet could be fully hybrid and electric in the next two to three years.
“Companies are very focused on improving their environmental credentials alongside meeting their duty of care responsibilities. Salary sacrifice supports both these strategies,” added Gilshan.