Personal contract hire (PCH) for business fleets in Q2 2017 grew 36% year-on-year and 7% quarter-on-quarter, according to figures from the British Vehicle Rental and Leasing Association (BVRLA).
The rise in PCHs coincided with a year-on-year increase of 2.4% in the car portion of the business fleet leasing market and 14.9% for large commercial vehicles (LCVs), for a total of 1.35m. The overall market, however, shrunk 1% from the first quarter of the year.
CO2 emissions for leased cars grew slightly by 0.7% year-on-year, but were still 8% below the wider UK average for all vehicles.
Registrations for new diesel cars among BVRLA members fell 6.5% year-on-year. Diesel cars still composed 74.9% of total leased vehicles, but was down slightly from the previous year.
BVRLA Chief Executive Gerry Keaney said: “Personal contract hire continues to drive growth in the car leasing market and this is having a clear impact on the automotive industry’s long-term goal of reducing CO2 emissions.
“Company cars are cleaner than the average privately procured car, and the government should be supporting this market with a progressive company car tax regime that doesn’t encourage people to do their own thing.”