UK company car numbers climb to 920,000 as electric vehicle tax breaks fuel 80,000 driver rise
By Eve
HMRC figures show UK employees receiving a company car benefit reached 920,000 in the 2024/25 tax year, an increase of 80,000 drivers year on year. The growth marks a sustained recovery from a pandemic low of 720,000 in 2020/21 and is attributed to tax incentives for ultra low emission vehicles and salary sacrifice schemes. The data reflects rising EV adoption in fleet contexts, though voluntary payrolling changes since 2016 complicate long term comparisons.
Why it matters: A larger company car fleet skewed toward electric models signals expanding workplace charging demand and potential procurement opportunities at business sites. Fleet electrification at scale also drives requirements for depot and destination charging infrastructure across the UK.