Arval: ‘The small EV is finally conquering the company car market’

Leasing company Arval Belgium has published new data from its Arval Mobility Observatory indicating that the smaller EV is now seriously breaking through in the company car market. The number of PHEVs has fallen back to 10% of new registrations in this market.

Nine of ten company cars ordered in 2024 through Arval have a plug. Initially, the EVs and PHEVs were from the higher and middle segments of the car market; in the last six months, the smaller categories have started an overtaking move.

“The total cost (TCO) of a pure electric car in the smaller segments is already lower than what a gasoline car costs today. The latter was chosen most often for financial and operational reasons, but that’s changing quickly,” says Yves Ceurstemont, Head of Arval Mobility Observatory Arval Belgium.

Popularity chart

2024 showed a constant battle for the number one spot in the order ranking at Arval. Finally, the BMW iX1 came first, closely followed by the EX30,  the Tesla Model Y, and the Mercedes EQB.

Fifth is the Skoda Enyaq, followed by the BMW i4, Tesla Model 3, Volkswagen ID.4, BMW iX2, and Audi Q4, closing the ranks at the 10th place. “The most popular cars are mainly SUVs from the middle segment, except two sedans, the i4 and the Model 3,” Ceurstemont comments. “That’s mainly due to the worldwide appetite for SUVs, pushing the manufacturers to focus on this type of car.”

Volvo EX30 leads the way

The most recent trend is the appearance of more compact electric SUVs, led by the successful Volvo EX30. “Electrification accelerated last year because an increasing number of smaller models have become available,” explains Ceurstemont.

“Mostly in the second part of last year, apart from the already mentioned Volvo EX30, we saw the orders for a Kia EV3, a Mini Aceman, or a Peugeot 2008 flowing in. These cars have a lower TCO now than their ICE counterparts. The Volkswagen Polo is the only popular gasoline car, but that will change when the ID.2 is on offer,” Ceurstemont adds.

“The new ‘car of the year’, the electric R5, also shows signs of becoming a hit, even in the fleet market. 2025 will be an exciting year for the smaller BEVs that have begun their catch-up race,” Ceurstemont concludes.