Fleet Alliance sees huge growth in ULEVs

Fleet Alliance Group has seen huge growth in Ultra Low Emission Vehicles (ULEVs) on its funded fleet as drivers switch to greener options.

Fleet Alliance saw the number of ULEVs with carbon emissions of less than 75g/km grow by 112% in 2019, compared to 2018.

Registrations of ULEVS more than doubled as drivers looked to cut their tax bills and companies sought to reduce their corporate carbon footprint.

EV manufacturer Tesla which saw a fifty-fold increase in registrations on the Fleet Alliance fleet of 37,000 vehicles, thanks to the  new Model 3.

With a P11D price of £42,935, the Model 3 is available as a Standard Range Plus model with an all-electric range of 254 miles and a Long Range version delivering 348 miles. The all-electric Model 3  attracts a scale charge of 16% in the current tax year, falling to a 0% BIK rate from April, and then rising to 1% in 2021-22 and 2% in 2022-23.

The biggest mover at the executive end of scale was the Range Rover P400e PHEV (Plug-in Electric Hybrid) which has an all-electric range of 12-25 miles depending on driving conditions and emits around 71g/km of carbon emissions.

Registrations of the executive plug-in hybrid which has a P11D value of £72,785 for the 2.0 Sport HSE and a first year VED rate of just £15, went up more than ten-fold.

Martin Brown, Managing Director of Fleet Alliance Group (picture above) said: “We have seen a surge in orders for ULEVS over the last 12 months, with manufactures such as Tesla, Land Rover and BMW being the real winners on our funded fleet. Pure electric cars and plug-in hybrids have featured very strongly in our fleet mix as companies have looked to reduce their corporate carbon footprints.

“And we fully expect this trend to accelerate throughout 2020 thanks to the Government’s changes to the BIK scale charges which really incentivises drivers to go down an all-electric route.”

In July last year, the Government unveiled a zero rate of BIK tax for electric vehicles (EVs) for tax year 2020-21, along with a 2% reduction in BIK for new cars registered after April 6. At the same time, it announced a freeze on 2020-21 BIK rates for the following two years.