Best electric company cars
With low emissions and attractive tax rates, an electric company car could mean big savings
As emissions become a much bigger focus than ever before, diesel cars have fallen out of favour as the company cars of choice. Making the switch to an electric car is now the obvious option for most company car drivers, given the favourable tax bills and much-improved battery ranges.
On top of these Benefit-In-Kind (BiK) company car tax savings, running costs should be far lower than a traditionally fuelled vehicle - especially if you can charge at home or at work. Our experts have tested every electric car on sale in the UK, including those in the mid-size family car, SUV and executive car classes where company cars tend to be picked from. Below are the models we recommend most highly.
Read on for our list of the best electric company cars currently available…
Best electric company cars 2026
The Mercedes CLA is the best electric company car according to our expert road testers. If your allowance can’t quite stretch to one of those, the Nissan Leaf is a fine affordable EV company car choice. The BMW iX3 is our best SUV in the electric company car rankings.
| Rank | Make and model | Prices from |
| 1. | Mercedes CLA | £39,000 |
| 2. | Nissan Leaf | £29,000 |
| 3. | BMW iX3 | £53,000 |
| 4. | Audi A6 e-tron | £63,500 |
| 5. | BMW i5 | £68,000 |
| 6. | Tesla Model Y | £42,000 |
| 7. | Volvo EX60 | £57,000 |
| 8. | Kia EV3 | £31,500 |
| 9. | MG4 Urban | £23,500 |
| 10. | Volkswagen ID.7 | £51,500 |
Keep on scrolling or click the links above to jump to our mini-review each of the best electric company cars..
1. Mercedes-Benz CLA
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- Prices from: £39,000
Over its first two generations the Mercedes CLA was the stylish, coupe-like alternative to the entry-level A-Class, but in this third generation it’s become a standard-bearer for efficiency in the Mercedes electric range. An efficient motor, excellent aerodynamics (a drag coefficient of only 0.21) and a hefty 85kWh battery pack all contribute to a headline figure of up to 483 miles.
That alone makes the CLA useful for company car users covering greater distances (and minimises punishment of the company card at expensive fast-charging points) but the excellent ride comfort and refinement also play a part. It flows along country roads too and while no longer a particularly compact car, it isn’t out of its depth in town. A starting price of under £40,000 meanwhile means that combined with the 4% BIK rate for zero-emission vehicles, company car tax is very competitive considering the badge on the bonnet
2. Nissan Leaf
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- Prices from: £29,000
The latest Nissan Leaf is the kind of car we’d happily recommend to private buyers looking for an efficient family car (it’s our 2026 Car of the Year afterall), but it should prove popular with company users too. A £32,600 starting price keeps company car tax rates fairly low - as little as £22 a month for a basic-rate taxpayer, while even splashing out on the top-spec Evolve with the 75kWh battery pack, a higher-rate taxpayer can expect to spend only £53 a month.
It’s not all about tax though. With a maximum range of 386 miles, the new Leaf can carry on for a pretty decent time between charging stops, and the most powerful 215bhp version crosses the 62mph mark in the mid-sevens, which isn’t bad considering the much more placid Leafs of the past. The latest Leaf even looks pretty decent, and the modern, clean cabin design is attractive and usable too
3. BMW iX3
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- Prices from: £53,000
Not everyone will get on with the styling of the new BMW iX3, but then divisive aesthetics have been a common theme for BMWs over the last decade or so, and it’s not exactly held them back on ability, or indeed sales. The iX3’s a technological departure for BMW, representing a whole new line of ‘Neue Klasse’ vehicles - and with huge range, great driving characteristics and a striking cabin, the iX3’s not a bad introduction to it.
That range? 500 miles with the 113kWh battery of the 50 xDrive, though even the ‘40’ model with its 87kWh pack is good for 395 miles. Both are strong performers and hold their own in corners too thanks to accurate steering and excellent body control (both long-running BMW characteristics), while refinement and comfort are top-class too, save for a firmness on some surfaces. The electric architecture meanwhile means plenty of cabin space, and the all-new dashboard layout works very well in practice. We can see company users lapping it up
4. Audi A6 e-tron
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- Prices from: £63,500
The latest generation of Audi A6 is available as both a combustion vehicle and an EV (at least in name), but as is often the case it’s the EV that makes by far the most sense for company users owning to its rock-bottom BIK rates. It also happens to be a good choice even when tax isn’t involved. Sportback and Avant versions are available, as are high-performance S6 variants, though prices for those start well into the £90k range.
Refinement is already a strong point of EVs, and indeed prior generations of Audi A6, but in e-tron form comfort and refinement really is excellent. Only slightly excessive tyre noise on motorways takes away from the hushed ambience, and the effortless powertrains (upwards of 322bhp on offer) give it that long-legged luxury car feel. Maximum range of 444 miles in some models gives it long legs of a different kind too
5. BMW i5
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- Prices from: £68,000
We could almost copy-paste our thoughts on the i4 for the BMW i5, as the BMW 5 Series has always served exactly the same role as the 3 Series, just one class up. This is the first generation of 5 to offer an electric model, though, and it suits it down to the ground: the i5’s refinement, quality and sense of luxury is first-class.
A starting price of just under £68k (for which you get an 81.2kWh battery pack and rear-wheel drive, a six-second 0-62mph time and WLTP range of over 350 miles) does add a few quid to your BiK tax bill. It undercuts the Mercedes EQE, though, and while the Audi A6 e-tron is a touch cheaper, the BMW drives better than either and its slick, modern cabin has the edge on both for quality
6. Tesla Model Y
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- Prices from: £42,000
Tesla has a two-car range in the UK right now, and here’s the other one: the Model Y. Effectively a crossover version of the Model 3, it has many of the same benefits. It has the same drawbacks too, though in its latest form, launched in the UK in 2025, it’s undoubtedly better than ever and prices have actually come down from where they were a few years ago.
At about £42k, the Model Y does start at £4,000 higher than the Model 3, which raises your BiK bill a little (although it really is only a few tens of pounds given the low 4% rate for all EVs). It’s more practical, with a larger cabin and a hatchback rather than a saloon-style boot, but it doesn’t drive as well as its lower counterpart, with a jiggly ride. The 314-391-mile WLTP range is impressive though.; one benefit of the larger Long Range battery you get for the car’s higher price
7. Volvo EX60
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- Prices from: £57,000
If the German premium electric SUV options are a little too outgoing for you, then may we suggest something more reserved, in the handsome shape of the Volvo EX60? Volvo recently revealed that the combustion-powered XC60 has become its best-selling model line of all time, and as the electric variant, the EX60 carries quite some weight of responsibility. The good news for Volvo is that it’s a highly accomplished car and quite appealing in its own right.
This is one of the longest-range EVs on sale in top-spec P12 form, and while ‘range anxiety’ isn’t the problem it once was, it’s still nice to know you have so much in reserve. Even the smallest 83kWh battery in the P6 delivers 380 miles, more than enough for most, and naturally this will be the cheapest in terms of BIK contributions too. The EX60 drives well in a non-sporty kind of way and the tech is slick too, though not everyone will get on with the ultra-minimalist cabin and screen-focused layout
8. Kia EV3
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Prices from: £31,500
It’s difficult to gauge the size of the Kia EV3 from photos alone, given its styling similarity to the much larger Kia EV9, but at 4.3 metres long the EV3 is squarely in the same category as cars like the Cupra Born and MG4, and a little larger than a Renault Megane E-Tech - think small family hatch. Batteries range from 58.3kWh to 81.4kWh delivering 270 to 375 miles of range, and a 201bhp electric motor gives you 0-62mph times in the mid to high 7-second range.
That’s the numbers out the way, but is the EV3 any good? Well, yes, it’s quite impressive in fact. Those range figures are very competitive for a car in this segment (the Megane manages 285 miles at the most) and it’s pretty good value too, useful not just for private buyers, but also keeping BIK rates down. It’s practical (though rear seat comfort could be better) and it rides well, which isn’t always the case for cars on fashionably large wheels like the EV3’s. Just don’t expect a thrilling drive to go with it
9. MG4 Urban
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- Prices from: £23,500
The MG4 Urban isn’t a replacement for the MG4, but an entirely different (albeit similarly-named) model. It’s front-wheel drive rather than rear-wheel drive, and has softer styling than its older counterpart. It’s also not as fun to drive as the regular MG4, but makes up for that by being even more spacious and costing rather less to buy - which has a knock-on effect when calculating BIK costs, so it’s a cost-efficient company car too.
MG offers two battery sizes, one with 41.9kWh and the other ‘Long Range’ model with 52.8kWh. They achieve 201 and 258 miles on a charge respectively, which is about right for a car at this price point but can’t match the more expensive MG4’s 338-mile maximum. It’s not as zippy off the line either thanks to less powerful 147bhp and 158bhp motors, and can’t quite match a Renault 5 for performance or fun - but then it’s more accommodating inside and the 577-litre boot is huge for the price
10. Volkswagen ID.7
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- Prices from: £51,500
After some mis-steps and slightly disappointing electric models, we think the Volkswagen ID.7 is something of a return to form for the brand. It’s a genuinely talented electric fastback, and a class-leading one when it comes to comfort and practicality – there’s little here that can compete with its rear-seat space, making it a great family car, and the 532-litre boot is accessed through a hatchback opening, an immediate advantage over the Model 3, Ioniq 6, EQE, i5 and BYD Seal.
Pricing for the regular ID.7 starts at just over £51,400 in Pro Match Plus trim (the even more practical ID.7 Tourer estate is only around £700 extra), and performance is competitive with others here: the 282bhp e-motor gets you a 6.5-second 0-62mph time, while the 77kWh battery is good for 383 miles (WLTP).
Our guide to company cars
- Best company cars
- Best cheap company cars
- Best electric company cars
- Company car tax guide: everything you need to know about Benefit-in-Kind
- Double-cab pick-up truck tax explained: company car tax and VAT
If you’re looking to reduce your carbon footprint but aren’t quite ready to make the full switch to electric, check out our list of the top 10 best hybrid cars to buy.
