Tesla is losing ground while Chinese electric cars are gaining popularity.
The price of company cars has almost doubled over the past ten years, an increase that is forcing companies to revise their mobility policies. The main reason for this cost increase is the shift from fossil fuels to electric vehicles. However, this also brings new options for employees who do not need a large car, or opt for a smaller model. Many companies can no longer afford to have their employees' mobility budgets increase along with the price of new cars, and are therefore increasingly opting for smaller models.
The once popular Tesla has lost appeal, partly due to problems with maintenance and after-sales service. The residual value of Teslas has fallen due to Elon Musk's unpredictable actions, leading to higher costs for leasing companies. These higher costs are passed on to companies, further reducing the attractiveness of Teslas.
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Meanwhile, Chinese electric cars are gaining popularity. They offer large, well-equipped vehicles at a much lower price than European brands. For example, a small Opel Corsa costs about the same as a much larger BYD with leather seats. The European Union is considering tariffs on Chinese cars, which could affect prices. But if Chinese manufacturers decide to increase production in Europe, this effect may remain limited.
Moreover, electric cars will not be fiscally stimulated forever, because this proves untenable for the government. Employees who are used to larger models may be disappointed when they have to switch to smaller cars. Some choose to drive a smaller car or even purchase their own car and spend the released mobility budget differently.
The most popular commercial vehicles of 2024, based on the most ordered models from mobility provider Athlon Belgium, are all fully electric. The top ten consists of the BMW iX1, Audi Q4 e-tron, BMW i4, Mercedes-Benz EQB, Tesla Model Y, Volvo EX30, Skoda Enyaq, Mercedes-Benz EQA, BMW iX3 and Tesla Model 3. It is striking that the BMW X1 PHEV, the best-selling commercial vehicle in 2023 and the only plug-in hybrid in the top ten, has disappeared from the list this year, along with the latest petrol and diesel models.
The rise of electric vehicles and the associated price increases are putting pressure on companies to rethink their mobility strategies. The traditional preference for large, luxurious cars is increasingly making way for smaller and more efficient models. Employees may be disappointed by these changes, but it also offers new opportunities for personal mobility choices and budget optimization.