Company Car Adoption In UK Expected To Surge Due To Electric Cars

Tax breaks are key.

Following the government’s decision to bring forward the ban on the sale of new petrol- and diesel-powered cars to 2035, it seems the humble company car is set to make a comeback. That’s according to a new study, which found eight in 10 employees who currently opt out of a company car scheme are ‘likely’ or ‘very likely’ to take on an electric company vehicle.

The research, which was conducted by electric car leasing firm DriveElectric, surveyed staff at a large, unnamed company operating throughout the UK, and found almost half (48 percent) of those currently not using a company car were “very likely” to take up an electric company car. Meanwhile 32 percent said they were “likely” to do the same.

According to DriveElectric, the increased interest in electric company cars is partly due to the change to Benefit in Kind (BIK) company car tax. From April 2020, there will be no company car tax to pay on electric vehicles (EVs), so employees could save a huge amount of money by switching to a pure EV.