National insurance (NI) savings are the top reason employees choose an electric vehicle (EV) through a salary sacrifice scheme, according to research by providerTusker.
Its EV driver survey report 2025, which surveyed 6,600 employees also found that price, tax benefits or affordability of a salary sacrifice arrangement were the top reason for 69% of non-EV drivers choosing an EV as their next car, followed by 62% citing cheaper running costs. Environmental benefits concerned 38%, with almost half of those wanting it for the savings.
More than a third (38%) with an EV cited the tax and NI savings as their main motivation for going electric, up from 31% last year. Fuel savings were the next biggest driver at 28%, while 20% named environmental benefits as their main reason for switching.
With the high upfront price of EVs still a deterrent for 63%, concerns around charging infrastructure and charge point availability have dropped from 73% in 2024 to 52% this year. Fewer drivers are concerned about the range of cars, down from 70% to 47%, while anxiety about how long EVs take to charge has fallen from 60% to 36%.
Almost three-quarters (71%) of non-EV drivers believe they will be driving an EV in the next four years, up from 69% in 2024, while 35% would choose an EV if they were changing their car tomorrow.
Kit Wisdom, managing director at Tusker, said: “Much of the EV market’s growth is being driven by salary sacrifice car schemes, where people are making excellent use of the tax and NI savings available. Employers also gain from NI savings; plus, as employees are more likely to join an organisation and stay, employers see improvements in recruitment and retention figures.
“The vast majority are satisfied with their EVs, enjoy lower costs and plan to stay electric for the long term. That’s why salary sacrifice is so important: it helps overcome affordability barriers while boosting employee engagement, retention and sustainability commitments.”
