Petrol and hybrid company cars increase market share

28th August 2024

The proportion of fully electric company cars has fallen, while petrol and plug-in hybrid electric vehicles (PHEVs) have grabbed market share, new analysis suggests.

The figures, from Cap HPI’s Insight report, show that diesel fleet registrations have fallen from a market share of 4.9% to 4% over the first half of the year.

Petrol vehicles, meanwhile, have increased over the same period, rising from 23.6% to 25.7% of the fleet market, and PHEVs were the biggest risers, jumping from 15.6% to 22.7% of registrations.

Andrew Turner, senior product specialist at Cap HPI consulting, said: “While the decline of diesel registrations has been significant, petrol vehicles still account for a quarter of the market.

“Over the last 12 months, we’ve seen a clear trend away from BEV to PHEV as companies bridge the gap from ICE to fully electric vehicles.”

HEVs also saw an increase from 5% to 6.2% market share as companies seek the flexibility of hybrid technology.

Turner continued: “Hybrid vehicles give companies great flexibility while attracting the benefit of lower BiK rates.

“The improved fuel efficiency can also deliver cost savings in an economy where companies face rising costs.”

Registration data from the Society of Motor Manufacturers and Traders (SMMT) for July, showed that hybrid electric vehicle (HEV) uptake increased by 31.4% to achieve a 14.5% market share, while PHEVs grew 12.4% to take 8.9% of registrations.

Battery electric vehicle (BEV) volumes, meanwhile, were up 18.8%, resulting in an overall market share of 18.5%.

Figures from the SMMT also revealed that year-to-date, the fleet and business sector now holds 62% of the market, with 718,035 registrations, a 20% uplift on the 598,270 new cars registered over the same period last year.