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Increased incentives, lower running costs and reduced emissions – why businesses are keen on green for company cars
September 12 2025, 12:01am
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Five years ago, it would have been difficult to make a case for a fleet of electric vehicles – but objections have run out of road. In fact, it is increasingly difficult to argue in favour of road transport, regardless of the size of business.
The market share for EVs in the UK currently stands at 21 per cent and is accelerating rapidly, with a record 34 per cent increase for the first half of the year.* It demonstrates a one-way direction of travel that’s inevitable.
Choice and affordability have improved greatly. Mercedes now boasts seven fully electric cars, plus three vans, including the compact eCitan, as well as a collection of saloons and SUVs.
The range balances sustainability, cost efficiency and premium performance, providing owners and leasers with a comprehensive set of options.
And with the forthcoming launch of the innovative new all-electric Mercedes-Benz CLA – a 484-mile-range (based on a full battery charge), rapid-charging, four-door saloon – the case for an EV fleet is even stronger.
There are plenty more reasons for company vehicles to go electric, such as lower running costs. Fuel savings on EVs can be as much as 50 per cent over petrol and diesel, depending on where and how they are charged.** Maintenance is also simpler and more cost-effective given there are fewer moving parts compared to an internal combustion engine.
Total cost of ownership for a Mercedes is increasingly competitive and CFOs considering their options will almost certainly be able to benefit from multi-car offers.
Reduced emissions and growing government incentives are equally appealing. An electric car qualifies for enhanced capital allowances, which means an enterprise buying EVs can deduct the full vehicle cost from its profits before tax.
EVs are now eligible for vehicle tax after the concession was removed in April but even with that change, new registrations will only be liable for £10 in their first year then the standard rate thereafter. All electric cars are exempt from Ulez charges.
Additionally, while employees are required to pay a benefit-in-kind tax on a company car, the rate is much lower at 3 per cent (increasing annually) than those for internal combustion engine and hybrid cars. Their rates can run to more than 30 per cent for a three-litre model and above.
Concerns about charging are flatlining. Drivers of a Mercedes EV benefit from flexible charging options with home and public systems and a variety of portable plug types that adjust automatically to connection capacity, ideal for anyone who racks up the miles.
In-car technology and apps including Mercedes me monitor power status, navigate to suitable stations and provide payment options. There are also two home charging units for drivers with off-street parking, including a bidirectional version, which sends electricity back to the grid as well as the owner’s home.
All Mercedes vehicles come with a three-year warranty providing cover for any manufacturing faults during this period, regardless of mileage. Larger fleet owners also enjoy free comprehensive roadside assistance for three years as well as support teams that are available 24/7 across the UK and Europe.
Each of these points makes a strong argument to run a Mercedes EV fleet. But perhaps the strongest of all is knowing that a business is meeting sustainability goals and actively reducing its carbon footprint.
The new CLA – or Mercedes-Benz CLA with EQ Technology, to give its full name – is the next generation four-door battery electric model of the luxury executive subcompact saloon.
Slightly larger than its predecessor but more aerodynamic, it comes with a panoramic sunroof, privacy glass, LED high performance headlights and multifunction sports steering wheel in leather as standard. There are three editions: Sports, AMG Line and AMG Line Premium.
All models feature the new MB.OS operating system, a hyper-personalised virtual assistant that unites the collective knowledge of Google, ChatGPT-4o and Microsoft Bing. The range also benefits from a comprehensive suite of driver safety assistance tools. Trained on billions of gigabytes of data, the CLA knows how to respond to a virtually endless multitude of possible road scenarios.
For enhanced comfort and ambience, its chip-to-cloud intelligence connects infotainment, automated driving and charging systems. Personalised SoundExperience offers six sonic options to tweak the sound of the vehicle inside the cabin. Plus, the MBUX virtual assistant has been trained to pick up on the driver’s mood based on their interaction patterns.
The interior uses a new architecture with screens that span the entire width of the dashboard, while a 101-litre frunk (front bonnet space) and 405-litre boot provide ample storage.
Range 484 miles
Charge Up to 200 miles in 10 minutes (based on 320kw DC charging, with a starting charge of 10 per cent, based on the WLTP range)
Power 272bhp
Acceleration 0-62mph in 6.7 seconds
Top speed 130mph
Discover more at mercedes-benz.co.uk
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