Nearly Half of Business Hires Are Now Pure Electric Cars

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In a significant mark of progress for net-zero transport, battery electric vehicles now represent nearly half of the business contract hire fleet in the UK, according to the latest data covering the third quarter of 2025. The BVRLA’s Leasing Outlook Report reveals that EVs accounted for 47 % of that segment, underscoring the financial leasing sector’s growing role in driving electrification.⁤ The report also shows that three-quarters of lease car fleets are now capable of zero-emission driving whether through battery electric, plug-in hybrid, or hybrid powertrains highlighting the increasing dominance of electric mobility in commercial fleets. Within these, salary sacrifice schemes have seen particularly high penetration, with EVs comprising 83 % of those fleets, compared to 47 % in business contract hire and just 18 % in personal contract hire.⁤ This data marks a clear movement away from traditional combustion-engine vehicles in the sector and highlights the disparities in adoption between different types of lease arrangements.⁤

These figures contrast substantially with the state of central government fleets, which remain behind schedule on decarbonisation targets. Despite a 2021 pledge to electrify the entire light-duty fleet by 2027, only 15 % of cars and vans classified in scope are currently pure electric 22 % of cars and a meagre 4 % of vans. Exemptions have been applied, yet the low figures suggest challenges in execution remain substantial.⁤

Meanwhile, infrastructure developments continue to unfold more encouragingly. A new initiative has made First Charge’s depot charging service available via the Allstar EV network. This partnership brings low-cost, high-powered, secure charging facilities to bus depots across the UK, including ultra‑rapid superhub access expanding the options for fleets transitioning to zero-emission operations.⁤

Taken together, these developments reflect a mixed landscape. On one hand, private-sector fleets especially business lease firms are advancing strongly into electrification. On the other, government sectors are falling short of targets, and infrastructure deployment is gradually accelerating but still needs scale. The shift to zero‑emission transport is palpable, but remains uneven.

What this means:

Private business fleets are clearly leading the charge toward electrification. The near‑50 % footprint of battery electric cars in business contract hire fleets signals strong confidence and priority. This suggests fleet managers are prioritising fleet turnover, cost control and sustainability. Government should look to mirror this ambition within public sector performance plans.

However, central government’s lag in electrifying its own vehicles raises questions about procurement practices, infrastructure readiness, and alignment with announced targets. Clarifying obstacles and delivering on stated commitments is vital to maintain credibility.

Finally, improved access to depot charging through alliances like First Charge and Allstar is a tangible win but limited in scale. Continued expansion is essential to ensure that as electrification accelerates, reliable and accessible charging infrastructure keeps pace especially at under‑served locations like smaller depots or rural areas.

As we move deeper into 2026, the strongest accelerators for net-zero transport appear to be the private sector’s burgeoning adoption and data-led infrastructure improvements. To harness their full potential, coordinated action across government, leasing companies, OEMs and charging operators remains essential.

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