Employees now pick over half of new company cars in 2025

Employees now pick over half of new company cars in 2025

Line graph showing the growth of battery electric vehicle sales in Australia with accompanying explanatory text.

Employees now pick over half of new company cars in 2025

More than half of new company cars in 2025 will be chosen by the drivers themselves. This trend reflects a shift towards greater employee influence over vehicle selection, with around 447,500 cars expected to be personally picked. Flexibility in powertrain and brand choice varies widely across industries, from healthcare to IT. In 2025, roughly 51% of new company car registrations will be decided by employees, totalling about 447,500 vehicles. Most of these user choosers—around 85%—can select their powertrain without restrictions, though brand options are often limited. Nearly 90% of those with brand constraints can still pick from the Volkswagen Group.

Brand loyalty remains strong, with 65% of user choosers sticking to their current manufacturer for their next company car. Key factors in decision-making include price-performance ratio, brand reputation, and driving comfort. For battery-electric vehicles (BEVs), range stands out as the most critical consideration. The share of employee-chosen cars varies by sector. In IT and communications, 78% of company cars are selected by staff, while in healthcare and social services, only 15% are. Meanwhile, 32% of user choosers plan to switch to a fully electric powertrain for their next vehicle, reflecting broader corporate shifts toward electrification. Since 2020, electric company cars have seen strong growth in Germany, with rising registrations of BEVs and plug-in hybrids. While detailed sector data is limited, companies like BMW Group and Deutsche Post (with its Streetscooter fleet) have led adoption. Many firms now prioritise electric or hybrid options for their 2025 fleets.

The trend towards employee-chosen company cars is growing, with flexibility in powertrain selection and brand loyalty shaping decisions. Electric vehicles are gaining traction, driven by range improvements and corporate sustainability goals. This shift suggests a lasting change in how company fleets are managed and selected.

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