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The number of people paying benefit-in-kind on company cars is falling, with the latest HM Revenue & Customs figures showing a 110,000 drop to 1.2m.
But drivers are getting the green message, with 49% choosing vehicles emitting 155g/km or less of CO2. In total 57% of company cars were now under 166g/km in 2004-05, the most recent figures, compared with 50% in 03-04 and 41% in 02-03.
Only 6% of company cars are in the much-publicised Vehicle Excise Duty band G for vehicles over 225g/km, compared with 10% two years earlier.
The decline in total numbers has accelerated again, after dropping by 180,000 in 2002-03, but only by a further 60,000 in 03-04 before the most recent 110,000 fall.
Diesel is now officially the business fuel of choice, increasing its share from 33% in 02-03 through 44% the following year to the latest figure of 54% share.
The total taxable value of company cars now stands at £4.25m, dropping from £4.69m a year earlier.
"These latest official figures paint a worrying picture," said Richard Schooling, Alphabet commercial director and BusinessCar blogger. "They show that company car drivers are making greener choices in response to the CO2-based BIK regime yet. If present trends continue, there will actually be no company car drivers left in a few years' time.
"The tax regime is far and away the biggest influence on both companies and drivers when it comes to making the choice of company cars or cash. It is to be hoped that the outcome of the HMRC's review of mileage allowances, as part of its review of ECO schemes, will clearly encourage businesses and drivers to make the greenest and most responsible choice of car."
For more on these latest HMRC figures.
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