Employees now drive company car choices as sustainability takes the wheel

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Employees now drive company car choices as sustainability takes the wheel

Line graph showing the growth of battery electric vehicle sales in Australia, with accompanying explanatory text.
Janet Carey
Janet Carey
2 Min.

Employees now drive company car choices as sustainability takes the wheel

A new study reveals that over half of company car registrations in 2025 were decided by the drivers themselves. The User Chooser Study 2026 by Dataforce highlights how employee preferences are reshaping fleet choices. Around 447,500 vehicles fell under this category, marking a significant shift in procurement trends.

The research also shows a clear move away from traditional petrol and diesel models. Instead, sustainability and cost efficiency now dominate decision-making for many workers. The way employees pick company cars has changed in recent years. Once, engine power and prestige drove choices, but today, CO₂ emissions and sustainability take priority. Electric and hybrid vehicles now come with five-year tax exemptions, while stricter fleet emission rules push companies towards greener options. Many firms also use 'green nudging' in booking systems or offer mobility budgets as alternatives to standard company cars.

Flexibility varies widely across industries. In IT and communications, 78% of staff select their own company cars, whereas in healthcare and social services, only 15% have this freedom. Most user choosers stay loyal to their current brand, but 32% plan to switch to fully electric models. Brand restrictions often benefit German manufacturers, particularly the Volkswagen Group.

Range remains a key concern for battery-electric vehicles (BEVs), while price-performance ratio, brand reputation, and driving comfort also influence decisions. Around 85% of user choosers can pick their powertrain without limits, but brand options are frequently restricted. Currently, 60% of these drivers use petrol or diesel cars, yet only 40% intend to stick with them for their next vehicle. The study underscores a growing preference for electric and hybrid company cars. With tax incentives and stricter emissions rules, more employees are likely to abandon traditional fuels. As industries adapt, the shift towards sustainable mobility in corporate fleets appears set to continue.