The new leasing outlook report from the industry body reveals that personal lease agreements (PCH: personal contract hire) tracked almost in line with ZEV mandate targets in the second quarter of 2024. Battery electric vehicles accounted for 21% of new PCH additions to the BVRLA’s leasing fleet in Q2 2024; just below the 22% target for carmakers in 2024 under the ZEV mandate. However, the association has warned that the uplift risks being short-lived if the used EV market is not stabilised.
The latest Leasing Outlook report also shows the BVRLA leasing fleet grew 3% year on year, with positive performance exclusive to cars (up 4.1%) while demand for vans remains flat. Continuing what is now an established trend, business contract Hire (BCH) saw demand climb, as did salary sacrifice. Private motorists have felt the pinch of widespread cost-of-living increases, causing total demand for PCH to fall 13.2% year on year.
Despite the mixed overall picture, both business and personal sectors have seen uplift in demand for battery electric vehicles (BEV). Business users are leading the transition to cleaner, greener vehicles, supported by targeted incentives and corporate sustainability strategies. Half of BCH additions in Q2 2024 were BEVs, placing it years ahead of the rest of the market when it comes to decarbonisation.
Incentives for private motorists are less prevalent, although demand for BEVs is still on the up. Factors driving the change are more vehicles coming to market and manufacturers adapting pricing to help them meet their obligations under the terms of the ZEV mandate.