The increasing appeal of electric vehicles is helping the leasing sector return to growth following the initial impact of Covid-19, according to the British Vehicle Rental and Leasing Association (BVRLA).

In the third quarter of 2021, battery electric vehicles (BEVs) accounted for 21 percent of new cars added to the BVRLA fleet, and the total number of BEVs on the fleet expected to grow a further 53 percent – from 137,000 to 210,000 – by the third quarter of this year.

The association says demand is being driven from the company car market, where 31 percent of business contract hire and 68 percent of salary sacrifice orders are now for electric vehicles.

“We have seen the lease fleet size return to growth for the first time in three years, demonstrating the sector’s resilience,” said BVRLA Chief Executive, Gerry Keaney.

“While this is predominantly due to the popularity of vans, it is notable that car registrations have seen positive performance, marking a significant turnaround as the recovery from 2020 takes hold.”

The association’s Leasing Outlook report shows that the recent popularity of vans continues to accelerate. Vans now account for one-in-four vehicles operated by BVRLA members in the leasing sector, with their success due in part to the shift to a digital economy reliant on home delivery services.