The number of company cars stagnated in 2023, largely driven by higher costs and a decrease in demand. Young people are also now less likely to be granted this work perk.
The share of company cars declined in 2023, SD Worx found based on an analysis of 1.2 million employees in the private sector. It is the first time in many years that the popularity of the company car has not increased.
For 14.6% of employees in the private sector, a car was part of the pay package last year, down from 14.8% in 2022. A striking break in the trend, as the number of company cars has risen systematically in recent years: in 2018, just 11.5% of employees had a company car.
"We see the biggest decline among workers under 25 years old (from 3.3% to 2%) and limited also among 25 to 35-year-olds," SD Worx mobility expert Veerle Michiels said. The percentage of employees with a company car and less than one year of seniority dropped significantly from 7.3% in 2022 to 1.8% in 2023.
Costs rising while interest slumps
SD Worx noted that this decrease – particularly among more junior staff – is probably because companies have started looking more closely at costs. Last year alone, the median list value rose 10% and by almost a quarter in five years. Half of the cars are now more expensive than €40,000, up from €32,500 in 2018.
"This development cannot be separated from the electrification of the company car fleet," Michiels explained. "Since 2021, (hybrid) petrol cars have overtaken (hybrid) diesel vehicles and electric vehicles are on a rapid rise."
SD Worx also thinks that employee appetite is lower than it used to be. "Young people are not always in the front row for a company car anymore, especially if they live in the city. It is no longer top of mind in a recruitment process."
Yet mobility benefits, such as a contribution or subscription for public transport or a car and bicycle (allowance), remain very popular among Belgian employees, as a tool in the war for talent.
Belgium is the only country where more than half (57%) of employees say they have a mobility benefit. In Europe, the average is 29% of European workers.
