A recent survey by Tusker, the UK’s leading salary sacrifice car provider, reveals a significant increase in electric vehicle (EV) adoption, with 40% of UK employees stating their next car will be electric.
The survey, conducted in April 2024, also found that 62% of employees planning to switch to an EV cited the cost savings associated with salary sacrifice schemes as a key motivator.
The Tusker EV Driver Survey 2024 included 5,942 UK employees, comprising 4,331 employed driving licence holders, 1,316 EV drivers using Tusker schemes, and 295 petrol vehicle drivers on the same programme. These findings highlight the growing appeal of EVs, particularly when financial incentives like salary sacrifice schemes are available.
Salary Sacrifice Schemes Encouraging EV Adoption
According to Tusker, salary sacrifice schemes have become a major driver for EV adoption, offering tax and financial benefits that are making electric vehicles more accessible to employees. Kit Wisdom, Managing Director of Tusker, emphasised the importance of these schemes in boosting the EV market.
“Company car and salary sacrifice schemes are playing a major part in supporting EV take-up. Industry data shows that recent growth in EV market share could not have been achieved without the significant benefits linked to salary sacrifice,” Wisdom stated. He added that government support is crucial to maintaining these incentives, ensuring that more consumers and businesses switch to electric vehicles.
The survey confirms that tax advantages provided by salary sacrifice schemes are among the main reasons employees plan to transition to EVs. The upfront cost of purchasing an EV, which is often a barrier to private buyers, is not a concern for those using these workplace schemes, as they avoid having to make large initial payments.
Rise in Salary Sacrifice Car Schemes
Recent data from the British Vehicle Rental and Leasing Association (BVRLA) shows a 47% increase in salary sacrifice car scheme participation in the final quarter of 2023 compared to the same period in 2022. The majority of these employees—84%—opted for electric vehicles. However, when salary sacrifice benefits are not available, the uptake of EVs is much lower. The BVRLA found that 66% of private contract hire agreements during the same period were for petrol vehicles, with only 16% of private hirers choosing an electric option.
Wisdom noted that EV drivers are generally satisfied with their choices. “This year’s survey showed the high—and rising—levels of satisfaction EV drivers have about their cars. Just 3.5% of EV driver respondents said they’d go back to a petrol or diesel car.”
The survey highlights a strong satisfaction rate among EV drivers using the Tusker scheme, with 93% reporting they are either satisfied or very satisfied with their electric cars. Additionally, 96% of respondents said their vehicles are reliable or very reliable. These satisfaction levels underline the appeal of electric vehicles for those who have made the switch, supported by workplace schemes that alleviate cost concerns.
Aside from the tax savings, lower running costs are another significant factor driving employees towards EVs. According to the survey, 60% of employees said the reduced running costs were a key reason for choosing an EV, while 52% cited environmental benefits as a primary motivation for moving away from petrol or diesel vehicles.
Overcoming Concerns About EVs
For those yet to switch to an electric vehicle, some concerns remain, particularly regarding the range of electric cars and the availability of public charging infrastructure. The upfront cost of EVs also continues to be a factor. However, data from the survey shows that 86% of current EV drivers believe their car’s range is sufficient for everyday use, and 78% report only needing to use public charging networks once a month or less.
The UK’s charging infrastructure is rapidly improving, with almost 6,000 new public charge points installed in the first three months of 2024, bringing the total number of public chargers across the country to 60,000. Of these, 12,000 are rapid or ultra-rapid chargers, with 300,000 public charge points expected by 2030.
Despite these concerns, the survey found that non-EV drivers are planning to switch to electric vehicles soon. Among employees who don’t currently have an EV through the Tusker scheme, 69% said they plan to make the switch within the next four years.
