Electrification, innovation, and the road ahead
Paul Hyne, Commercial Director - Lex Autolease
If you thought 2025 was a turning point for electrification, buckle up—we’re already heading towards the end of Q1 and it’s looking like 2026 is set to push things even further. With new brands disrupting the market and policy changes reshaping the landscape, the next 12 months could redefine how Britain moves. Here’s what Paul Hyne, Commercial Director, has to say.
Looking back, 2025 really was a year of two halves.
In the early months, the used EV market felt the strain, with values dipping and confidence wavering. But by summer, momentum began to shift. The turning point arrived in July with the launch of the Electric Car Grant, offering up to £3,750 towards eligible EVs. Interest surged almost overnight, breathing new life into the new and used EV markets and halting the downward trend we’d seen earlier in the year.
Even the announcement of the new 3p‑per‑mile EV road charge couldn’t derail that recovery. Stability returned, helped along by a Budget that kept the Benefit in Kind regime unchanged for electric company cars and extended first‑year capital allowances to leased commercial vehicles, a hugely welcomed boost for businesses.
At the same time, the market became more dynamic than ever. New entrants like Omoda, Jaecoo and BYD muscled onto the scene, seizing market share from long‑established brands. This fresh competition is great news for consumers: more choice, more innovation, and more value across both EV and plug‑in hybrid ranges. Alongside these newer entrants, the established names like Mercedes, Audi and BMW are also launching new models, including the BMW IX3, which has a 500-mile range*, and is generating a huge amount of interest from corporate drivers.
One standout success for us at Lex Autolease was our used EV leasing portal. Designed to help businesses electrify faster and more cost‑effectively, it offers vehicles typically 20–30% cheaper** than new equivalents and lease terms starting from just 12 months. Demand tripled in 2025, a trend we fully expect to accelerate this year.
Will 2026 be the year of the electric van?
I believe it will.
We’ve reached a tipping point where transitioning from diesel to electric vans makes compelling business sense. With the UK’s ageing diesel fleet becoming increasingly unreliable, electric vans have finally caught up, delivering impressive advancements in both range and payload.
We’re working closely with customers to support their transition end‑to‑end: from total cost of ownership assessments to route planning, charging infrastructure and maintenance. For many fleets, the shift will be gradual. In a fleet of 100 diesel vans, for example, we may identify a subset ready to switch immediately, unlocking instant reductions in emissions and downtime. Others may require operational tweaks to ensure a smooth, viable transition.
A changing landscape for company cars
When it comes to cars, one thing is clear: in 2026, a company car remains the most cost‑effective option for drivers and a powerful recruitment incentive for employers. With more people returning to the office and face‑to‑face client meetings, fleet mileage has climbed around 20% year on year***.
We’re also exploring new ways to make company cars even more appealing. This includes launching EV fuel cards that enable charging on a salary sacrifice basis, helping both car and LCV drivers keep costs as low as possible, especially those without access to home charging. Plus, we’re enhancing the Lex driver portal with new features to make account management smoother and more intuitive.
And that’s not all. We’re investing in agentic AI to elevate customer support to a 24/7, predictive model. By integrating with telematics, we aim to identify issues before they arise, enabling proactive maintenance and reducing vehicle downtime.
Shifting gears for 2026
This time last year, my focus was on getting the fundamentals right, and we’ve made significant progress. Now, we’re ready to shift up a gear and embrace innovation that will transform fleet management for the better.
Thanks for being part of this journey.
Article published March 2026
Sources
* BMW
**Lex Autolease data based January 2026 deliveries.
*** Lloyds Banking Group’s Future of transport report
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