Why 2025 Is a turning point for SME Fleets

At the begining of this year we forecasted that UK BEV sales will grow to approximately 440,000 units in 2025, taking around 24% of the total new car market — up from 19.6% in 2024 but still short of the 28% ZEV mandate goal. (DriveElectric 2025 EV registrations forecast)

This growing momentum makes it clear: electrification isn’t just a policy goal, it’s already reshaping UK fleets. For SME decision-makers, aligning sooner rather than later gives you both operational and financial head start as regulations tighten.

With fuel prices remaining volatile and servicing costs on the rise, traditional vans and company cars are becoming financial liabilities. In contrast:

• Leasing an electric car or van can result in a significant decrease in per-mile running costs, potentially by as much as 70%, particularly when leveraging home or workplace charging.
• Electric vehicles have fewer moving parts, meaning lower maintenance costs and fewer breakdowns.

For SMEs working on tight margins, predictability and cost control are key and leasing an electric vehicle ticks both boxes.

What’s more, business car leasing options have evolved. It’s not just premium brands like Tesla anymore, there’s now a wider range of affordable models from trusted manufacturers like Kia, MG, Nissan, Peugeot, and Vauxhall, as well as many new manufacturers like BYD, arriving in the UK, shaking up the market with practical options for every kind of business use.

And to make the move even more attractive, the government has launched a new EV grant for businesses. This scheme offers financial support to encourage companies to lease or purchase electric vehicles, helping to lower the cost of adoption and accelerate the UK’s shift to clean transport.

Even better, SMEs can now take advantage of used EV leasing through DriveElectric. These are carefully selected, nearly-new electric cars that offer all the benefits of electric car leasing but at a lower monthly cost.

• Access premium electric models (e.g. BMW, Tesla, Polestar) at a fraction of new lease prices
• All vehicles are carefully checked and approved, with low mileage and full service history
• Fast delivery with contracts as short as 12 months, perfect for trying before fully committing or for those employees who are on shorter term/ interim contracts.

Used EV leasing makes it even easier for SMEs to go electric without compromise, whether you’re just starting out with one vehicle or adding EVs alongside your existing fleet.

Sustainability is no longer just a “nice to have”, it’s increasingly a requirement in how companies choose their suppliers and partners.

Larger organisations, particularly in construction, logistics, retail, utilities, and professional services, are under pressure to meet ESG goals, and that means looking closely at the environmental impact of their entire supply chain, including subcontractors, service providers, and transport partners.

If your SME provides goods or services to these businesses, you may already be seeing:

• Sustainability questionnaires or carbon reporting requirements in tender processes
• Requests to declare your fleet emissions or future decarbonisation plans
• Pressure to operate only ULEZ/Clean Air Zone compliant vehicles within certain contracts

Many SMEs risk losing out on valuable contracts, or failing to qualify for tenders altogether if they can’t demonstrate a clear move toward lower emissions.

Offering electric vehicles through salary sacrifice schemes is one of the most effective ways for SMEs to boost employee benefits, enhance retention, and support corporate ESG goals, all while making EVs more affordable for staff.

With a salary sacrifice scheme, employees can lease an electric car by sacrificing a portion of their pre-tax salary. This reduces their taxable income, which means they pay less Income Tax and National Insurance. Meanwhile, employers benefit from National Insurance savings, improved staff satisfaction, and reduced fleet emissions.