Almost half of all cars registered to fleets were fully electric in 2023, but their penetration rate fell to less than a third at the start of this year, new Cap HPI data from the UK's largest fleet operators suggests.

The market share for battery electric vehicles (BEVs) increased from 38.1% in 2022 to 48.8% in 2023, while overall volumes of registrations increased 25% compared to the previous year. 

	Full 2023	Full 2022	Change	2023 Share	2022 Share
Diesel	9,706	12,683	-23.5%	4.7%	7.7%
Petrol	46,427	50,422	-7.9%	22.4%	30.5%
BEV	101,192	64,493	+56.9%	48.8%	39.1%
PHEV	39,550	26,455	+49.5%	19.1%	16.0%
HEV	10,327	11,023	-6.3%	5.0%	6.7%

Source: Insight - Cap HPI

However, January saw lower overall registrations, falling 39% against the same period in 2023, with BEV registrations declining by a third (33.6%) to 31.7% of all fleet registrations.

	Jan 2024	Jan 2023	Change	Jan 24 Share	Jan 23 Share
Diesel	648	934	-30.6%	5.1%	6.2%
Petrol	3,631	4,664	-22.1%	28.6%	31.2%
BEV	4,027	6,063	-33.6%	31.7%	40.5%
PHEV	3,695	2,225	+66.1%	29.1%	14.9%
HEV	711	1,086	-34.5%	5.6%	7.3%

Source: Insight - Cap HPI

Plug-in hybrid electric vehicle (PHEV) fleet registrations, meanwhile, surged by 66.1% in January.

Separate data from the Society of Motor Manufacturers and Traders (SMMT) showed that fleet registrations recorded double digit growth in February, driving the UK’s new car market and BEV sales.

There were 56,266 new company cars registered to fleet and business in the month, a 25% uplift on the 45,050 units registered in February 2023, equating to 66% market share.

Year-to-date, fleet and business new car registrations stand at 148,888 units, equating to 65% of the market and a 27% increase on the 117,405 company cars registered during the same period last year, according to the SMMT’s figures.

The CAP HPI analysis is drawn from its Insight market volume data, which is developed with the support of the UK's largest fleet companies. 

It shows that Tesla saw the most registrations by fleet operators in 2023, with the Model Y topping the chart with 19,718 vehicles and the Model 3 ranking fourth with 5,566. 

	Range	Full 2023
1	Tesla Model Y	19,718
2	Polestar 2	8,222
3	Audi Q4	6,632
4	Tesla Model 3	5,566
5	Kia Niro	5,340
6	MG Motor UK MG4	5,256
7	Audi A3	5,252
8	Volvo XC40	5,003
9	Volkswagen Golf	4,265
10	Vauxhall Corsa	4,133

Source: Insight - Cap HPI

The top 10 was dominated by BEVs, with Tesla, Polestar and MG taking four of the top ten places.

The data also shows that diesel vehicle registrations declined by 23.5%, petrol by 7.9%, while BEVs increased by 56.9%. 

Andrew Turner, senior product specialist at Cap HPI consulting, said: "The Insight data points to a healthy fleet industry that is leading the UK in driving the green transition.

"The monthly updates help fleet partners benchmark themselves against their peers and provide valuable insights into a range of decisions from model choice to remarketing." 

The top 10 Insight ranges for January

	Range	Jan 2024
1	Audi A3	861
2	Volkswagen Golf	462
3	Skoda Octavia	351
4	Kia Niro	341
5	MG Motor UK MG4	318
6	Volvo XC40	313
7	Volkswagen T-Cross	296
8	CUPRA Formentor	271
9	Kia Sportage	268
10	CUPRA Born	255

Source: Insight - Cap HPI

Michaela Hill, managing consultant at Cap HPI, explained that Insight was developed in partnership with leasing companies to help them determine exactly how competitive they are in the market relative to their peers by comparing data, including residual value, service, maintenance, repair, and full leasing price lists. 

“In today’s market, it’s essential to maintain an accurate and consistent perspective of pricing positions to support sales and profit margins,” she added.