Electric Vehicles Driving Significant Growth in the Automotive Market  

So far this year we’ve witnessed an increase in sales of 27%, and we have seen a bigger shift toward B2B sales, which is almost sitting at a 50/50 split, business to personal. Up from 23% business and 77% personal only last year.

Key statistics: 
 

• EV sales are up 31% 
• PHEV are up 13.4% 
• HEV are up 28.8% 
• Diesel is down 17.9% 
• Due to the salary sacrifice scheme businesses are switching to electric for their employees and this is driving up fleets. 

 
Tony King, Head of Digital at First Vehicle Leasing said:  

“Seeing the fleet overtake private sales in the new car sector is exciting. We’ve seen an uptake in the raw numbers of leases going through the business since the beginning of 2023. From our customer’s viewpoint, the logic is quite clear. In uncertain times, it makes sense to lock your costs in and protect against inflation. And this holds as much for a business as it does for a private individual. 

Although diesel is steadily declining, the media rhetoric on EVs could have been better, with conversations firmly fixed on the cost of living and spiralling energy costs.  

Electric vehicles were not cheap when starting out in the marketplace, but no new technology ever is. As you’d expect, people got a little put-off and used EV prices plummeted. But if you take the time to look at the new EV market, it’s thriving. Autotrader has just said that the depression on the prices is all but over, and the actual outright purchase costs for new EVs are coming down as new models bring around more competition and new and exciting vehicles push boundaries. 

An excellent example of this would be Fiskers new Ocean SUV, having just been WLTP rated with a combined figure of up to 440 miles that would have been unthinkable only ten years ago, especially in a car of that size.  

The MG 4 offers up to 280 miles WLTP, and we are leasing those from under £300 a month – it’s a well-appointed fully-fledged family car. If you can secure a good energy tariff from OVO or Octopus, you can make substantial savings on your daily commute. Even better, if your employer lets you salary sacrifice the vehicle through the business, the discounts (especially for a higher taxpayer) can be fantastic, and it should work out at a net zero cost to them. 

The year ending well after its promising start depends on several factors. If inflation can be controlled effectively and energy prices return to more palatable levels as promised, consumers may be tempted to switch to an electric car. For businesses, it’s more to do with overall vehicle supply to assist with renewing fleets, and so far, supply is looking better. For both business and personal, it’s safe to say times in the UK are still quite uncertain financially. Leasing might continue to prove the best way to shelter from that uncertainty and secure your new vehicle.