Around 89% of cars leased via Arval on salary sacrifice are now an electric vehicle, an increase from just 39% two years ago.
Over the same time period, the total number of cars provided using the sustainable mobility specialist’s salary sacrifice scheme, Arval Ignition, has risen by 252%. A figure that includes growth in terms of both existing clients and the creation of new schemes.
Richard Cox, Consultant at Arval UK, said that these rapid changes were being powered by a combination of factors but the most important driver was taxation.
“The single biggest reason behind the rise of the EV-centred salary sacrifice scheme in the last couple of years has been the introduction of zero and very low rate benefit-in-kind taxation rates, meaning that the latest, most advanced and environmentally-friendly cars can be offered to employees at extremely attractive monthly rates.
“In these circumstances, Ignition fits not just the needs of people who would like a company car and do not currently qualify for one, but also often employees who have taken a cash allowance option and are looking for alternative car provision.
“The level of interest being shown across companies we are working with is very high indeed and shows every sign of growing further as general awareness and acceptance of zero-emission EVs continues.”