A Tesla Model 3, part of Asda’s electric fleet, outside the Asda headquarters.

A Tesla Model 3, part of Asda’s electric fleet, outside the Asda headquarters.

Credit: Asda

The supermarket chain Asda, currently the third largest in the UK, is swapping its company car fleet to all-electric vehicles.

The grocer says all its current internal combustion engine (ICE) vehicles will be off-fleet latest June 2025, five years in advance of the Government's ban on petrol and diesel vehicles, commencing 2030.

Over the next four years, the supermarket plans to electrify its fleet of 600 vehicles, saving more than 2,411 tonnes of CO2 – the equivalent, it says, of six million miles driven by an average petrol car.

The move to an all-electric car fleet is being overseen by leasing and fleet management company Zenith, which has managed the company’s car and commercial fleet for the last 20 years.

Employees at Asda were in the vanguard of the change, with 85% of colleagues who chose a company car as part of their benefits package deciding on an electric vehicle during the past year.

The Asda choice list for field and head office-based colleagues includes the Audi Q4 e-tron, Mercedes EQA and EQC, Tesla Model 3, Polestar 2, Volkswagen ID.3 and ID.4, and the Volvo XC40 Pure Electric.

Company car tax and running costs are significantly lower with electric vehicles. For example, an employee paying tax at the lower 20% rate can expect to pay £1671 in benefit in kind tax during the current financial year to drive a Volkswagen Golf 8 TDI R-Line, while the same driver in an electric Volkswagen ID.3 Life Pro would only pay £62.

Simon Bell, senior manager Asda reward team, said: “Reducing our carbon footprint is extremely important to us and our customers so we are always looking at ways in which we can make a difference and be a more sustainable business.

“We are delighted by the enthusiastic uptake in electric cars by our colleagues over the past few years and it is a win-win, as they are helping the environment as well as reducing their own motoring costs.”

Asda recently revealed that it had reduced the amount of greenhouse gas (GHG) emissions it produced last year by more than 16%. The company says investment in low carbon technologies across its stores and depots is part of a long-term strategy of a 50% reduction in carbon emissions by 2025 and to ultimately become a net-zero carbon business by 2040.

Jon Smith, relationship director at Zenith, added: "We worked closely with the team at Asda to model the impact of this move and ensure it met the needs of the business and colleagues. Transitioning the fleet to  electric vehicles creates a significant carbon saving for the business, which supports Asda’s sustainability agenda and gives colleagues access to a wide range of vehicles that provide the latest technology and cost-effective motoring."