Volkswagen has once again cemented its position as the UK’s best-selling fleet brand, topping the charts in a year that saw renewed confidence and strong growth across the true fleet market. With business registrations rising by 12% in 2025, the fleet sector continues to prove its importance as a bellwether for wider corporate confidence and mobility trends.
Over the course of the year, more than 178,000 new Volkswagen vehicles were registered in the UK, with almost 69,000 of those delivered through the true fleet channel. This channel includes vehicles supplied directly from manufacturers to large corporate customers, leasing companies and public-sector organisations, as well as sales to small businesses through dealer networks. As a result, true fleet registrations are widely regarded as one of the clearest indicators of business demand and company car market health.
Volkswagen’s performance underlines its enduring appeal to business users. Simon Lynch, Head of Fleet Sales at Volkswagen UK, described the results as a strong endorsement of the brand’s fleet strategy and product range.
“We are delighted with our market-leading true fleet performance in 2025. It speaks volumes about the health of our fleet business overall and the popularity of Volkswagen cars among business drivers,” he said.
Demand for Volkswagen’s electric models was a particular highlight. As benefit-in-kind incentives continue to influence company car choice, more fleets are transitioning to EVs, attracted by lower tax costs, long driving ranges and improved comfort. Models such as the award-winning ID.7 Tourer, capable of covering more than 400 miles on a single charge, are helping to accelerate that shift.
Traditional favourites remain important too. The Volkswagen Tiguan emerged as the UK’s best-selling fleet car of 2025, while the Golf also delivered a strong showing, finishing sixth overall.
A Competitive Fleet Landscape
Competition beyond Volkswagen remained fierce throughout the fleet market in 2025. BMW emerged as the closest challenger, with Audi also delivering a strong performance. Tesla, while facing softer demand than in 2024 and recording an 18% year-on-year decline, still maintained a top-four position, highlighting its ongoing presence in company car fleets despite a more challenging year.
The top-performing true fleet brands in the UK during 2025 were:
- Volkswagen
- BMW
- Audi
- Tesla
- Kia
- Skoda
- Mercedes-Benz
- Toyota
- Hyundai
- Ford
The rankings reflect a blend of established fleet favourites and brands that continue to evolve their offering in response to changing business needs, particularly around electrification, total cost of ownership and vehicle availability.
Overall, true fleet registrations increased by more than 65,000 units year-on-year, reflecting a market that is steadily recovering and evolving. Among the strongest performers was Renault Group, which achieved its best true fleet sales performance in more than a decade.
Renault’s growth was driven by gains across its Alpine, Dacia and Renault brands, supported by sustained investment in its UK fleet operation. An expanded specialist team has been working closely with customers, partners and retailers across both cars and vans — progress that was recognised with the Fleet News “Most Improved Fleet Manufacturer” award in 2025.
Justin Costello, Head of Fleet at Renault UK, highlighted a shift in how fleets now view the group.
“We’re seeing a real change in fleet perceptions of Renault Group. We benefit from one of the freshest model line-ups in the industry, with designs that are characterful and offer strong driving dynamics, technology and value.”
He added that simplifying the buying process has been key, with customers able to access the full Renault Group portfolio — across electric, hybrid and internal combustion vehicles — through a single point of contact.
Other brands enjoying notable growth included Cupra, up 53%, Hyundai with a 20% increase, and Mini, which surged by an impressive 79%. Polestar also nearly doubled its true fleet sales following the launch of the Polestar 3 and Polestar 4, while Porsche saw a boost driven by the arrival of the electric Macan.
Not all manufacturers shared in the success. Citroën experienced a sharp decline, down 50%, while Nissan (-18%) and Kia (-13%) also recorded lower volumes.
The Rise of Chinese Brands
One of the most striking trends of 2025 was the rapid expansion of Chinese manufacturers in the fleet market. Chinese brands accounted for 10% of all true fleet registrations, up from just 4% the previous year.
BYD led the charge, posting growth of 433% and registering almost 22,000 fleet vehicles. Chery Group followed closely, delivering nearly 20,000 registrations across its Chery, Jaecoo and Omoda marques. For Jaecoo and Omoda, 2025 marked their first full year of UK sales. Additional contributions from Changan, Leapmotor and Xpeng helped push total Chinese true fleet registrations to around 62,000 units.
Powertrain Trends: EVs Lead the Way
Electrification continues to reshape fleet buying behaviour. In 2025, electric vehicles accounted for 41% of all true fleet registrations. Petrol and diesel models still played a significant role at 32%, while plug-in hybrids made up 18%.
Company car drivers remain a crucial force behind EV adoption. More than half of all electric vehicles sold in the UK last year — 53% — were registered through the true fleet channel, reinforcing the role of fleets as the driving force behind the UK’s transition to electric mobility.
Benefits of Business Car Leasing
Business car leasing, also known as Business Contract Hire (BCH), provides several benefits compared to buying a vehicle outright:
Financial Advantages
- Consistent Monthly Payments: Fixed instalments make budgeting straightforward.
- Lower Upfront Costs: Avoid tying up large amounts of capital in vehicle purchases.
- VAT Advantages: VAT Reclamation
- 50% of VAT can be reclaimed on the finance portion for mixed-use vehicles.
- 100% VAT reclaim is possible for cars used solely for business purposes.
- VAT can also be reclaimed on optional maintenance packages.
When combined with salary sacrifice schemes, employees can enjoy reduced personal tax, while businesses benefit from predictable fleet expenditure.
In the UK, the majority of leased cars generally fall into three main categories:
Executive Vehicles:
- Models such as the BMW 3 Series, Audi A4, and Mercedes C-Class are perfect for senior staff or client-facing roles, offering both style and comfort.
Mid-Size Cars:
- Reliable and practical options like the Volkswagen Golf, Ford Focus, and Skoda Octavia are ideal for everyday use, combining efficiency with versatility.
Electric and Hybrid Cars:
- Vehicles including the Tesla Model 3/Y, Nissan Leaf, VW ID.4, BMW i3/iX3, and Toyota Prius or RAV4 Hybrid provide strong green credentials and benefit from low Benefit-in-Kind (BIK) tax rates.
For more information about car leasing, check out our blog: Business Car Leasing: The Complete Guide for Companies and Fleet Managers
Find the perfect lease deal today!
With an impressive average score of 4.9 stars on Trustpilot, we believe our reviews reflect our commitment to customer service. Our knowledgeable team provides expert advice and guidance to help you choose the perfect vehicle and finance product for your needs.
With our extensive range of vehicles available for lease, you’re guaranteed to find the perfect vehicle to meet your needs. As proud members of the British Vehicle Rental and Leasing Association (BVRLA), we uphold the highest standards of service and professionalism. Plus, with our Price Promise, you can be confident you’re getting the best deal available. Rest assured, we are also authorised and regulated by the Financial Conduct Authority (FCA), ensuring transparency and trust in every transaction.
Many UK businesses have already benefited from our hassle-free approach to securing a brand-new vehicle, and now it’s your turn to take advantage of our exceptional services.
Call our expert team on 
